Establishing secure connection…Loading editor…Preparing document…

California Substitute for Form W-2 or Form 1099-R

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

California Form 3525 - Substitute for Form W-2 / 1099-R

Taxable Year

Attach to original or amended Forms 540, 540 2EZ, or 540NR.

1. Your first name, middle initial, and last name

2. Your SSN or ITIN

3. Address (number and street, Apt, suite, PO box, or PMB no., city, state, and ZIP code)

4. ENTER THE YEAR IN THE SPACE PROVIDED AT THE END OF THIS STATEMENT:
I notified the Internal Revenue Service that I have been unable to obtain or have received an incorrect federal Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., from my employer or payer named below.

The amounts shown below are my best estimates of all wages, tips, other compensation (including noncash payments), retirement payments received, state income tax withheld, and disability insurance withheld by the employer or payer during the taxable year.

5. Employer’s or payer’s name, address, city, state, and ZIP code

6. Federal employer identification number (if known)

7a. State income tax withheld

7b. Name of state

8. Wages, tips, or other compensation before deductions

9. State Disability Insurance withheld

10. Dependent care benefits

11. Nonqualified plans

12. Gross distribution – Qualified plan distributions

13. Taxable amount – Qualified plan distributions

14. Capital gain (included in Box 13)

15. Other

16. How did you determine or estimate the amounts in items 7–15?

17. Give the reason why federal Form W-2, Form 1099-R, or Form W-2c was not furnished by your employer or payer, if known. Explain your efforts to obtain the form.

Your signature

Date

Under penalties of perjury, I declare that I have examined this statement and, to the best of my knowledge and belief, it is true, correct, and complete.

Our privacy notice can be found in annual tax booklets or online.

Instructions for Form FTB 3525

Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).

General Information

Purpose

Use form FTB 3525 as a substitute for federal Forms W-2, W-2c, and 1099-R when your employer or payer does not give you a Form W-2 or Form 1099-R, or when your employer or payer has issued an incorrect Form W-2 or Form 1099-R. Attach form FTB 3525 to your tax return.

You should always attempt to get Form W-2 or Form 1099-R from your employer or payer before contacting the Internal Revenue Service (IRS) or filing form FTB 3525.

After February, you may call the IRS at 800.829.1040 if you still have not received Form W-2 or Form 1099-R.

If you received an incorrect Form W-2 or Form 1099-R, you should always attempt to have your employer or payer issue a corrected form before filing form FTB 3525.

Note: Retain a copy of form FTB 3525 for your records.

Will I need to amend my tax return?

If you receive a Form W-2, Form W-2c, or Form 1099-R after your tax return is filed with form FTB 3525, and the information differs from the information reported on your tax return, you must amend your previously filed tax return.

Penalties

The Franchise Tax Board will challenge the claims of individuals who attempt to avoid or evade their tax liability by using form FTB 3525 in a manner other than as prescribed. Potential penalties include accuracy-related penalties, civil fraud penalties, and civil penalties for filing frivolous submissions.

Enter text✕
Prepare your document for signing right on this page
  • 01 Edit the text and complete the fields
  • 02 Click Sign Now and on the next screen add recipients and signature fields in SignNow
  • 03 Start your free trial to sign and send your doc
Sign Now

What the California Substitute for Form W-2 or Form 1099-R Is

The California Substitute for Form W-2 or Form 1099-R is a state-formatted payee statement used to report wages, retirement distributions, and state withholding information where California requires specific fields or layout differences from the federal form. Employers or payers prepare a substitute when they provide the same required data elements as the federal W-2 or 1099-R but use a California-specific layout or additional state items. Substitutes must include all federally required data plus any California tax reporting details so that recipients and state tax authorities can reconcile withholding and taxable income accurately.

Stepwise process to complete the California substitute

Follow this order to assemble and verify the substitute form before distribution.

  • 01
    1. Gather payroll data: Export payroll totals and withholding for the calendar year.
  • 02
    2. Map federal boxes: Match federal W-2/1099-R boxes to California substitute fields.
  • 03
    3. Validate TINs: Confirm recipient SSNs/TINs against W-9 or prior records.
  • 04
    4. Review and sign: Confirm totals, apply required signatures, and retain an audit trail.

How electronic completion and routing typically works

A streamlined eSubmission workflow reduces manual handling and preserves required audit data for each signer and step.

  • Upload document: Import the PDF or DOCX version of the substitute form.
  • Place fields: Add text, numeric, and signature fields in the appropriate spots.
  • Send to signers: Add recipient emails and set signer order if needed.
  • Collect completion data: System captures timestamps, IPs, and completion certificate.

Suggested digital workflow settings for substitute forms

Configure these settings for secure collection, validation, and storage of completed forms.

Field Configuration
Authentication Email link or SMS code for signer verification
Field types Use numeric, date, and required-validation field types
Conditional logic Show state fields only when California is selected
Delivery options Send signed PDF plus completion certificate to payer and recipient

Key deadlines for California substitute reporting and recipient copies

Observe federal and California deadlines to avoid late-filing penalties and to ensure recipients receive documents in time for their returns.

Recipient delivery (W-2, 1099-R):

Jan 31 to employee or payee

IRS submission for W-2 and 1099-NEC:

Jan 31 electronic or paper when required

1099-MISC to IRS:

Paper Feb 28, electronic Mar 31

Individual tax return:

April 15 regular filing deadline

Extensions:

Form 4868 extends return filing to Oct 15

Penalties and compliance risks for incorrect or late substitutes

Late filing penalties: Per-form fines apply
Tiered penalty amounts: $60/$130/$330 per form
Intentional disregard: $660+ per form, no cap
Backup withholding: 24% withholding triggered
I-9 paperwork fines: $281–$2,789 per violation
Data breach exposure: State breach notification penalties

How a California substitute compares to the federal form

Key distinctions affect fields, filing destination, and allowable layout when an employer issues a state substitute.

Criteria California Substitute Federal Form
Notarization required
Format flexibility more flexible standard federal layout
State-specific fields
Filing destination state + irs as applicable irs only

Typical eSignature vendor pricing and capability overview

Comparison of starting prices and selected capabilities for common eSignature vendors. signNow appears first as a baseline for cost and core features.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Technical and integration considerations for eSubmission

Confirm integrations and supported file formats before automating substitute form distribution.

  • Formats supported: PDF, DOCX, XLSX
  • Common integrations: Salesforce, NetSuite, Google Workspace
  • Authentication options: Email, SMS, KBA available

Choose a platform with the required integration and authentication features to maintain audit trails and fulfill ESIGN/UETA retention rules.

Who prepares and who receives a California substitute

Several roles handle substitute forms, from payroll teams to financial advisors; understanding responsibilities reduces processing delays.

  • Payroll administrators and HR staff who compile wage and withholding data for state reporting
  • Tax preparers and payroll processors who validate TINs, reconcile boxes, and prepare electronic submissions
  • Financial institutions and retirement plan administrators who report distributions to participants and state tax agencies

Coordinate responsibilities across payroll, tax, and benefits teams to ensure timely issuance and consistent data across federal and state filings.

Typical roles that sign or authorize the substitute

Payroll Manager

Senior payroll staff responsible for final review and authorization. Typically confirms totals, EIN, and that state wage fields match payroll records before release.

Tax Preparer

External or in-house tax preparer who performs TIN validation, completes federal/state mapping, and certifies the accuracy of withheld amounts for submission.

Security and compliance features relevant to substitutes

Encryption in transit: TLS 1.2/1.3
Encryption at rest: AES-256
Certifications: SOC 2 Type II
Privacy frameworks: GDPR and CCPA compliance
Health data: HIPAA support with BAA
eSignature law: ESIGN and UETA compliant

Common mistakes to avoid when preparing a California substitute

  • Using a federal-only layout that omits required California wage or withholding fields, causing reconciliation failures and state inquiries.
  • Entering recipient TINs with formatting (dashes) or typographical errors that trigger backup withholding or IRS/FTB mismatch notices.
  • Failing to preserve a signed audit trail that proves signer intent and consent under ESIGN and UETA requirements.
  • Sending printed-only copies when employees expect electronic delivery, creating delays and extra mailing costs.

Practical examples of how organizations use substitutes

These short case narratives show typical scenarios where a California substitute is used and how digital workflows help.

Optica Ventures (COO)

Optica consolidated payroll across two business units and issued California-formatted substitutes to contractors

  • This reduced manual reformatting during year-end
  • The team retained electronic audit trails and reconciled state withholding faster while preserving signer attribution and consent.

Tech Data (CEO)

Tech Data prepared substitutes for retirement distributions processed in multiple states

  • They used conditional fields to show California-specific boxes only when applicable
  • The approach minimized duplicate forms and ensured recipients received clear, state-compliant statements for tax filings.

Practical tips for accurate and efficient completion

Adopt these best practices to reduce errors, speed distribution, and maintain compliance with state and federal rules.

Validate TINs upfront
Use payer TIN/TIN matching tools or collect a current W-9 before year-end to prevent backup withholding and reduce correction cycles.
Standardize templates
Keep a verified California-formatted template that maps each federal box to its state substitute field to avoid layout errors.
Use strong authentication
Require SMS or email verification for recipients to ensure attribution and support ESIGN legal validity.
Maintain retention
Store signed substitutes and the audit certificate for the recommended retention period to support audits and inquiries.

Frequently asked questions and troubleshooting

Answers to common operational and compliance questions about the California Substitute for Form W-2 or Form 1099-R.


Need help? Contact support

Explore Templates

CG-1280 Renewal of Certificate of Documentation Medical Claim Form Medical Certificate of Death Centrelink Medical Certificate SU415 Form Medical Certificate for Blind Candidate Return to Work Medical Certification Form
be ready to get more
Join over 28 million airSlate SignNow users
Sign Now
Company
Forms
Pricing
Resources
Knowledge base
Other Products
© 2026 airSlate Inc. All rights reserved.