California has enacted legislation (Assembly Bill 1355) that expands a requirement for employers to notify employees about federal and state earned income tax credits (EITCs). The changes are effective with notices furnished on or after January 1, 2024.
Employers must notify all employees that they may be eligible for:
- Voluntary Income Tax Assistance (VITA) Program;
- CalFile (a free online program for taxpayers to complete and e-file their state personal income tax returns); and
- State and federal antipoverty tax credits, including the federal and state EITCs.
The first notice is due within one week before or after, or at the same time, that the employer provides an annual wage summary to any employee
Employers must provide the first notice by handing it directly to the employee or mailing it to the employee’s last known address.
Notwithstanding the above, the employer may send the first notice to an email account of the employee’s choosing but only if the employee affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials.
Employers must also send a second notice to all employees during the month of March of the same year.
This second notice may be sent electronically.
For additional details:
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.