The Earned Income Tax Credit Information Act requires any California employer who is subject to, and is required to provide, unemployment insurance to their employees, under the Unemployment Insurance Code, to notify all employees that they may be eligible for Volunteer Income Tax Assistance (VITA), CalFile, and state and federal antipoverty tax credits, including the state and federal Earned Income Tax Credit (EITC). Employers must send this notice twice per year. The first notice must be sent within one week before or after, or at the same time, that the employer provides employees their annual wage summary, such as a Form W-2 or a Form 1099. The second notice must be sent to employees during the month of March in the same year the first notice was sent. Employers must either hand deliver the notices to employees, or mail the notices to the employee’s last known address. However, employers may send the second notice electronically.
From January 1, 2024 until January 1, 2029, Assembly Bill 1355 (AB 1355), authorizes employers to provide the first notice to employees via email to an email account of the employee’s choosing, instead of directly handing or mailing the document if an employee affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials. AB 1355 prohibits an employer from discharging or taking other adverse action against an employee who does not opt into receipt of electronic statements or materials.
Existing law requires an employer to supply, pursuant to authorized regulations, copies of printed statements or materials relating to claims for benefits to each employee at the time they become unemployed. AB 1355 authorizes employers, from January 1, 2024 until January 1, 2029, to provide the above-described notification concerning statements and materials for benefits via email to an employee’s email account, if the employee affirmatively, and in writing, by email, or by some form of electronic acknowledgment, opts into receipt of electronic statements or materials. The electronic acknowledgment form must include all of the following:
The employee must be given the opportunity to opt out of receiving electronic statements or materials at any time in writing, by email, or by some form of electronic acknowledgment.
AB 1355 prohibits the employer from discharging or taking other adverse action against an employee who does not opt into receipt of electronic statements or materials.
AB 1355 makes other changes to these laws, which take effect on January 1, 2029.
(AB 1355 amends, repeals, and adds Section 19853 of the Revenue and Taxation Code, and amends, repeals, and adds Section 1089 of the Unemployment Insurance Code.)