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State of California Franchise Tax Board

Federal Earned Income Tax Credit notification


To advise staff beginning January 1, 2008, that Assembly Bill 650 requires all employers to notify employees of the Federal Earned Income Tax Credit.


AB 650 requires any employer who is subject to, and is required to provide unemployment insurance, to notify all employees that they may be eligible for the EITC.


Employers are required to provide notification to employees within one week before or after the Wage and Tax Statement Form W-2 or Miscellaneous Income Form 1099 is given.

Employers must hand deliver notification to their employee or mail it to their employee’s last known address.

The law also requires the employer to process the IRS Form W-5 for advance payments of the EITC, if requested by the employee.


FTB is in partnership with other state agencies to help inform employers of the requirements.

Please visit for common questions and answers.


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