© 2025 American Payroll Institute, Inc.
January 27, 2025 Volume 27 Issue 2
Disaster Relief Available Due to California Wildfires
The Internal Revenue Service (IRS) has announced disaster
relief for employers and employees located in California
that have been impacted by the recent and ongoing
wildfires and straight-line winds. In addition to federal
relief, California is offering relief to impacted employers and
employees.
Federal relief
The IRS is extending filing deadlines for quarterly
payroll returns to October 15, 2025. This deadline applies to
quarterly payroll returns normally due on January 31, April
30, and July 31, 2025. The deadline for making payroll tax
deposits normally due on January 7, 2025, was extended
until January 22, 2025. The IRS is offering the relief to any
area designated by the Federal Emergency Management
Agency (FEMA), which is currently employers in Los Angeles
County [IRS, IR-2025-10, 1-10-25].
California payroll tax relief
Employers in Los Angeles and Ventura counties directly
affected by the Palisades Fire and windstorms may request
up to a 2-month extension from the California Employment
Development Department (EDD) to file state payroll reports
and/or deposit state payroll taxes without penalty or interest.
Written requests for an extension must be received within 2
months of the original delinquent date of the payment or
return [EDD, News, January 2025].
California unemployment insurance
The EDD is providing Disaster Unemployment
Assistance (DUA) for workers and self-employed people
who do not qualify for regular unemployment insurance
(UI) benefits. Part-time workers may also be eligible for DUA
benefits. DUA benefit claims must be filed by March 10,
2025. According to the California Chamber of Commerce,
certain business owners may be eligible for these benefits
personally [California Chamber of Commerce, News,
1-17-25].
State and Local Earned Income Tax Credit Notice Requirements
Employers must comply with federal and state
requirements to send notices about the Earned Income
Tax Credit (EITC), even though employees no longer receive
advance payments of the credit (see The Payroll Source®, §6.6).
The IRS has released the tax year 2024 EITC income limits and
maximum credit amounts. Note: The amounts for tax year
2025 are also available – employers will use these amounts
in notifications sent out in early 2026 (in most states with
requirements).
Nine states and one city require notice
Nine states and one city require employers to provide
separate EITC notifications to their employees, in addition to
the required federal notice (see Guide to State Payroll Laws,
Table 4.3):
California. Notice requirements were amended,
effective January 1, 2024, to January 1, 2029. Two notices
are now required. The first notice must still be given within 1
week before or after, or at the same time, that the employer
provides a Form W-2 to the employee. The second notice
must be given to all employees during the month of March.
The first notice must be given by handing it to the
employee directly or mailing it to the employee at their
last-known address. Employers are encouraged to also post
the notice on an employee bulletin board or send it through
office mail, but these methods do not satisfy the notification
requirements of the law.
The employer may provide the first notice via email to
an email account of the employee’s choosing in PDF, JPEG, or
other digital file format, if the employee affirmatively and in
writing or by electronic acknowledgement opts into receipt
of electronic statements.
The second notice, given in March, may be sent
electronically to all employees (opting in is not required).
A sample notice is available on the California Employment
Development Department (EDD) website, but it has not been
updated since 2018. Some sample language is also available
in another section of the EDD website. Effective January 1,
2024, through January 1, 2029, employers must also notify
employees that they may be eligible for: the Voluntary
Income Tax Assistance Program (VITA) CalFile, a program
that allows taxpayers to e-file California tax returns directly to
the California Franchise Tax Board (FTB) for free and state and
federal anti-poverty tax credits.
EITC information is available on the FTB website. There is
a webpage dedicated to the state EITC with information for
employees. Additional information for employees, including
information on VITA and the additional tax credits, is also
available on the FTB website.
Colorado. Employers are required to provide notice of
federal and state refundable tax credits to employees who
receive a Form W-2. Employers must provide Forms W-2 to
employees annually by January 31 of the following year.
The notice can be provided electronically or in print. If
printed, notices must be at least 5.5 inches by 8.5 inches, or
half of a standard sheet of paper. A printed notice must be
on its own page. The Colorado Department of Revenue (DOR)
January 27, 2025 Volume 27 Issue 2
Disaster Relief Available Due to California Wildfires
The Internal Revenue Service (IRS) has announced disaster
relief for employers and employees located in California
that have been impacted by the recent and ongoing
wildfires and straight-line winds. In addition to federal
relief, California is offering relief to impacted employers and
employees.
Federal relief
The IRS is extending filing deadlines for quarterly
payroll returns to October 15, 2025. This deadline applies to
quarterly payroll returns normally due on January 31, April
30, and July 31, 2025. The deadline for making payroll tax
deposits normally due on January 7, 2025, was extended
until January 22, 2025. The IRS is offering the relief to any
area designated by the Federal Emergency Management
Agency (FEMA), which is currently employers in Los Angeles
County [IRS, IR-2025-10, 1-10-25].
California payroll tax relief
Employers in Los Angeles and Ventura counties directly
affected by the Palisades Fire and windstorms may request
up to a 2-month extension from the California Employment
Development Department (EDD) to file state payroll reports
and/or deposit state payroll taxes without penalty or interest.
Written requests for an extension must be received within 2
months of the original delinquent date of the payment or
return [EDD, News, January 2025].
California unemployment insurance
The EDD is providing Disaster Unemployment
Assistance (DUA) for workers and self-employed people
who do not qualify for regular unemployment insurance
(UI) benefits. Part-time workers may also be eligible for DUA
benefits. DUA benefit claims must be filed by March 10,
2025. According to the California Chamber of Commerce,
certain business owners may be eligible for these benefits
personally [California Chamber of Commerce, News,
1-17-25].
State and Local Earned Income Tax Credit Notice Requirements
Employers must comply with federal and state
requirements to send notices about the Earned Income
Tax Credit (EITC), even though employees no longer receive
advance payments of the credit (see The Payroll Source®, §6.6).
The IRS has released the tax year 2024 EITC income limits and
maximum credit amounts. Note: The amounts for tax year
2025 are also available – employers will use these amounts
in notifications sent out in early 2026 (in most states with
requirements).
Nine states and one city require notice
Nine states and one city require employers to provide
separate EITC notifications to their employees, in addition to
the required federal notice (see Guide to State Payroll Laws,
Table 4.3):
California. Notice requirements were amended,
effective January 1, 2024, to January 1, 2029. Two notices
are now required. The first notice must still be given within 1
week before or after, or at the same time, that the employer
provides a Form W-2 to the employee. The second notice
must be given to all employees during the month of March.
The first notice must be given by handing it to the
employee directly or mailing it to the employee at their
last-known address. Employers are encouraged to also post
the notice on an employee bulletin board or send it through
office mail, but these methods do not satisfy the notification
requirements of the law.
The employer may provide the first notice via email to
an email account of the employee’s choosing in PDF, JPEG, or
other digital file format, if the employee affirmatively and in
writing or by electronic acknowledgement opts into receipt
of electronic statements.
The second notice, given in March, may be sent
electronically to all employees (opting in is not required).
A sample notice is available on the California Employment
Development Department (EDD) website, but it has not been
updated since 2018. Some sample language is also available
in another section of the EDD website. Effective January 1,
2024, through January 1, 2029, employers must also notify
employees that they may be eligible for: the Voluntary
Income Tax Assistance Program (VITA) CalFile, a program
that allows taxpayers to e-file California tax returns directly to
the California Franchise Tax Board (FTB) for free and state and
federal anti-poverty tax credits.
EITC information is available on the FTB website. There is
a webpage dedicated to the state EITC with information for
employees. Additional information for employees, including
information on VITA and the additional tax credits, is also
available on the FTB website.
Colorado. Employers are required to provide notice of
federal and state refundable tax credits to employees who
receive a Form W-2. Employers must provide Forms W-2 to
employees annually by January 31 of the following year.
The notice can be provided electronically or in print. If
printed, notices must be at least 5.5 inches by 8.5 inches, or
half of a standard sheet of paper. A printed notice must be
on its own page. The Colorado Department of Revenue (DOR)
