Year-End Notification Requirements

Wage and Tax Statement (Form W-2)

You must provide employees with a federal Wage and Tax Statement (Form W-2) by January 31 (or next business day if it is a weekend or holiday). Failure to provide a Form W-2 to each employee, or providing false or fraudulent statements, will result in a penalty.

Additional Resources

IRS Form W-2 reporting requirements or instructions:

For help with state information on Form W-2, refer to the California Employer’s Guide (DE 44) (PDF) or contact us at 1-888-745-3886. If the employee performs services in more than one state, contact the other state for guidance.

Tax Code

Federal Earned Income Tax Credit

All employers are required to notify all of their employees of the federal Earned Income Tax Credit (EITC). Employers must give notification within one week of providing employees with an annual wage summary (IRS Form W-2 or 1099).

You must give notification by either handing it directly to your employee or mailing it to your employee’s last known address. Posting of this information on an employee bulletin board will not satisfy the notification requirement.

The notification must include instructions on how to get any notices available from the IRS for the credit, including the IRS Notice 797 (PDF). You can create the notification, as long as it has the same or very similar language as the IRS notice. To learn more, visit EITC Information for Employers.

EITC Awareness Day

January 31 is Earned Income Tax Credit Awareness Day. EITC Awareness Day is a national grassroots effort spotlighting this valuable federal tax credit. Joining the IRS in this effort are charitable organizations, elected officials, state and local governments, employers, and local communities nationwide.

The EDD encourages California taxpayers to visit Earned Income Tax Credit to learn if they are eligible for this refundable credit on their federal tax return. Free tax preparation sites are available to help you file and claim the credit.

California Earned Income Tax Credit

The state offers its own California Earned Income Tax Credit (CalEITC). This credit is offered in addition to the existing federal EITC. For more information on qualifying for the California EITC, visit California Earned Income Tax Credit (CalEITC).

Information Return (Form 1099)

Individuals, partnerships, corporations, or other organizations involved in a trade or business in California may be required to report independent contractor payments. If required, you must provide an information return (Form 1099) to an independent contractor by January 31(or next business day if it is a weekend or holiday), or you will have to pay a penalty.

Additional Resources

Tax Code