Bill > AB509

This bill aims to increase awareness and participation in the federal earned income tax credit (EITC), a program created by Congress to help low-income working families by offsetting payroll taxes and encouraging employment. The bill mandates that employers must notify all employees about their potential eligibility for the EITC when providing annual wage summaries, such as a Form W-2, and that state departments and agencies serving potentially eligible individuals, including those in programs like free or reduced-price meals, unemployment insurance, Medi-Cal, and the Healthy Families Program, must also provide annual notifications. These notifications can be delivered directly, by mail, or through electronic or in-person communication, and employers are specifically prohibited from using bulletin boards or general office mail for this purpose, though these methods are encouraged as supplementary. The bill defines "EITC" as the federal earned income tax credit and clarifies which state programs and entities are responsible for outreach, emphasizing that the provided notices should contain language substantially similar to IRS guidance or state-developed notices.