New Hire Reporting Requirements:

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 contained provisions for strengthening the Federal Child Support Program.  This program collects child support payments for children in single-parent families.  A key provision of this was the New Hire Reporting regulations.  As of October 1, 1997 all employers are required to report some basic information on all new hires or rehires to the appropriate state agency with 20 days of the date of hire. (This is the federal regulation, individual states may have more stringent reporting requirements, some states require reporting in 7 days).

The employer must provide the following information: Employee Name, Employee Address, Employee Social Security #, Employer Name, Employer Address and Employer Identification #.  This is the same information found on a W-4.  The report can be made by filing the W-4 or an equivalent form.  Most states will only require these 6 items but some may want additional information and/or the use of their own form.  You may file by mail, fax, interactive telephone system, email over the Internet or electronic or magnetic media depending upon your state's requirements. The penalty for non compliance can be up to $25 per employee, and up to $500 per employee in cases of conspiracy between the employee and the employer.

Employers with employees in multiple states may select a single state (in which the employer has employees) to report all new hires.  Employers who choose to report in one state, must submit new hire reports electronically or magnetically.  The employer is also required to notify the Federal Department of Health and Human Services as to which state they have designated to receive the new hire reports.  You can use this form and mail or fax according to the directions.

Why is new hire reporting important?  Employers play a pivotal role in helping children receive the support they need.  Those who don't receive financial support often depend on public assistance or live in poverty.  By meeting the requirements of the new hire reporting law, you will help children get the support they need.  The state agencies will also be able to use this information to find and prevent fraudulent workers' compensation and unemployment claims, helping to control your company's insurance costs and unemployment tax rates.

For information about your state click this link for a list of your state's website or click this link for the New Hire Reporting Matrix from the U.S. Dept of Health & Human Services. For additional information from the U.S. Dept of Health & Human Services, click here.