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New California Law AB 650 Requires Employer Notification of

Earned Income Tax Credit (EITC)


Effective Jan. 1, 2008, California employers who are required to provide unemployment insurance must notify all employees that they may be eligible for the federal Earned Income Tax Credit (EITC) within one week before or after, or at the same time, the employer provides an annual wage summary including but not limited to a Form W-2 or Form 1099.  The notice is to be either hand-delivered or mailed.


Employers are encouraged to consult with their payroll service, accountant and/or legal counsel regarding compliance with tax laws.


The bill text is available online at http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_0601-0650/ab_650_bill_20071013_chaptered.pdf