What is the use of New Hire Reporting ?

Employers always ask, “I provide employee information on my Quarterly Wage Reports. Why must I also report the employee as a new hire ?”

Employers and / or labor organizations doing business in a State must report the following employees :

New hire information from the Quarterly Wage Reports becomes available two to six months after the date of hire. When you immediately report new hires, there is an improved chance of locating the individual while employed and the required child support action can be promptly taken. In addition, fraudulent unemployment insurance, workers' compensation, and welfare benefit payments can be quickly handled.

How will the information be used ?

Federal and state laws contain strict guidelines for the use of new hire reporting information. State new hire center computer system matches the new hire information against open child support cases to locate alleged fathers/non-custodial parents to establish paternity and child support orders, and enforce existing orders. Once these matches are done, the new hire information is sent to the National Directory of New Hires and is utilized by Child Support Agencies nationwide.

New hire information can also be used by states to help detect and prevent fraudulent payments to recipients of unemployment insurance, workers compensation, and welfare benefits.

Employer's key role :

New hire reporting speeds up the child support income withholding order process, expedites collection of child support from parents who change jobs frequently, and quickly locates alleged fathers/non-custodial parents to help in establishing paternity and child support orders. New hire reporting helps children receive the support they deserve. Employers are the key partners in ensuring financial stability for many children and families and should take pride in their role.

Who must report ?

All employers and/or labor organizations.

Who must be reported ?

Employers are required to report the following employees :

• New employees : Employers must report all employees to whom the employer anticipates paying earnings. Employees should be reported even if they work only one day and are terminated (prior to the employer fulfilling the new hire reporting requirement).
• Re-hires or Re-called employees : Employers must report rehires, or employees who return to work after being laid off, furloughed, separated, granted a leave without pay, or terminated from employment.  Employers must also report any employee who remains on the payroll during a break in service or gap in pay, and then returns to work. This includes teachers, substitutes, seasonal workers, etc.
• Temporary employees : Temporary agencies are responsible for reporting any employee whom they hire to report for an assignment. Employees need to be reported only once; they do not need to be reported each time they report to a new client. They do need to be reported as a rehire if the worker has a break in service or gap in wages from your company.

Is anyone exempt from this law ?

No one is exempt from this law.

What information must I report ?

In accordance with federal legislation, respective state generally asks for the following information :

• Employer's Federal Employer Identification Number (FEIN) - If you have more than one FEIN, please make certain you use the same FEIN you use to report your quarterly wage information when reporting new hires.
• Employer's Name
• Employer's Address
• Employee's Name (First, Middle, Last)
• Employee's Address
• Employee's Social Security Number

How do I report ?

There are a variety of ways to report new hires, including online reporting, electronic reporting and by mail or fax.

Where do I report new hires ?

Links of various states new hire address.

I am an employer with employees in more than one state. What special considerations, if any, need to be made for this ?

If you are an employer with employees in more than one state, you are a multi-state employer.

Multi-state employers have two options for reporting their new hires :

Option #1

Report newly hired employees to the state in which they are working, following the new hire regulations of each state to which you will report.

Option #2

Select one state where you have employees working and report all new hires to that state electronically.

When you select Option 2, you are required to follow the new hire regulations of only the state you have selected to receive your new hire reports.

Note : You may not report new hires using both Option 1 and Option 2.