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How to Report New Hires to a State Directory of New Hires

Author: Alice Gilman

All states require that an employer report newly hired employees to a State Directory of New Hires (SDNH). Employees who are rehired after being separated from the employer for at least 60 consecutive days must also be reported to the SDNH as new employees. Federal law requires that an employer report seven data elements. However, states can, and do, require that an employer report additional information. Some states require service recipients to report independent contractors. The information employers report is used to aid states in both the collection of child support and the detection of fraud in other programs such as welfare, unemployment compensation and workers' compensation.