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California Updates Earned Income Tax Credit Delivery Guidelines

October 18, 2023

Learn more about the updated delivery guidelines for California's Earned Income Tax Credit

California passed A.B. 1355, effective January 1, 2024, which gives employers additional methods to notify employees of earned income tax credit (EITC) programs.

What are California's new EITC Delivery Guidelines? 

Current law requires California employers to notify employees within one week of providing Form W-2 that they may be eligible for state and federal EITC programs either by mail or by physically distributing the documentation. The new regulations allow employers to distribute notices by email if employees opt-in by writing or by electronic acknowledgment.

Paylocity clients may access additional federal and state EITC information as well as options for electronic acknowledgment through the Paylocity knowledge base, PEAK.

 


For more information on California wage and payroll tax laws, check out our California Wage and Payroll Tax Facts page.


 

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