To comply with the statute, employers must hand-deliver or mail a written notice to all employees.  The notice must be provided within one week (whether before, after or at the same time) of when the employer provides the employee with an annual wage summary, such as W-2 or 1099 forms. The enclosed 4 attachments will help you to comply and are for your use.

IRS Form W-4 (2008)	Earned Income Tax Credit Required Notice (CA)
IRS Form W-5 (2008)	Employment Eligibility Verification Form I-9 (2008)

Although the Earned Income Tax Credit is available only to a limited number of employees, all employees must receive the required notice.  Employers will likely find it most efficient to enclose a copy of the notice with the W-2 Form, 1099 Form or similar annual income statements issued to employees.

 Finally upon request of any employee an employer must process, in accordance with federal law, Form W-5 for advance payments of the tax credit.

New 1-9 Forms

In their on-going attempt to reduce the hiring of illegal aliens, the Department of Homeland Security has updated the I-9 form.  The key to this new form includes the removal of several documents that were inadequate, and lacking in features that would make them easily identifiable as counterfeit. As this new form is effective immediately, please be sure to update your records accordingly.

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