Overview: 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
This chart details the new hire reporting requirements for each state and the District of Columbia that all employers must comply with, as well as the minimum standards provided by federal law.
XpertHR has added a helpful new 50-State Chart to its payroll resources, New Hire Reporting Requirements by State, which details both the federal and state new hire reporting requirements that all employers must comply with.
Updated to include information on Montana Form MW-4, effective January 1, 2019.
As mandated by the California Employment Development Department, covered employers must use the California Report of Independent Contractors, DE 542.
As mandated by the California Employment Development Department, employers may use the California Report of New Employees, Form DE 34, to report all newly hired employees.
This How To details the steps an employer should take to properly report newly hired employees to a State Directory of New Hires (SDNH).
In-depth review of the spectrum of South Carolina employment law requirements HR must follow with respect to New Hire Reporting.
In-depth review of the spectrum of Kansas employment law requirements HR must follow with respect to new hire reporting.
As mandated by the Texas Office of the Attorney General, covered employers must use the Employer New Hire Reporting Form to report new hires.
An explanation of the requirements for compliance with federal and state laws on employee new hire reporting.