HR Support on New Hire Reporting

Editor's Note: Check your state - list of new hire reporting elements continues to grow!

Rena PirsosOverview: Since 1996 the federal Personal Responsibility and Work Opportunity Reconciliation Act has required employers to report newly hired and rehired employees to the states. All 50 states and the District of Columbia maintain a State Directory of New Hires to which employers must report. New hire reporting positions employers as key players in both the collection of child support and the detection of fraud in other government programs.

Federal law generally requires employers to report each new hire's or rehire's name, address and Social Security Number, the date the employee first performed work for pay for the employer, and the employer's business name, address and federal employer ID number. Employers generally must send reports within 20 calendar days of the date of hire or rehire, twice per month for reports transmitted electronically, although individual states may require reports to be transmitted at a different time.

Many states require more information to be reported in addition to the federal requirements and impose civil penalties and fines for failure to report as required. This complicates matters for multistate employers.

A number of states also now require employers to report new independent contractors, although this is not required by federal law, and they impose additional penalties for failure to comply.

Author: Rena Pirsos, JD, Legal Editor

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