The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) (opens in a new window), commonly known as “New Hire Reporting,” is the reporting of basic information on newly hired and rehired employees. Federal regulations require employers to report this information within 20 days of hire, although some states may have a different timeframe. Private employers report to their prospective State Directory of New Hires, who in turn forwards this information to the National Directory of New Hires, while Federal agencies report directly to the National Directory of New Hires.
Why is there a New Hire Reporting regulation?
Laws requiring the reporting new hire information were established primarily to assist and expedite the processing of child support payments from parents who have been required by the court to pay child support. This regulation may also be used to assist agencies with inquiries into state or federal benefits, workers’ compensation, unemployment payments, or other programs as outlined by state regulations.
Who must comply with this regulation?
All employers must comply with this reporting regulation. Employers are required to report basic information on new employees, re-hires, and temporary employees. This requirement generally applies to actual company employees. Independent Contractors are not usually considered “employees” and therefore, may not be included in this reporting, but be sure to check with your state regulations as they may require you include them.
What am I required to report?
Federal law requires employers provide the below information. Additional information requirements may vary by state:
- Federal Employer Identification Number (FEIN)
- Company Name
- Mailing Address and Payroll Address (if different)
- Mailing Address
- Social Security Number
- Date of Hire
Reporting this information can be done electronically, by regular mail, by fax or other means as established by the collecting agency. Again, state requirements may vary on their method and time of reporting.
What if I never reported new hires before?
If your company has not reported new hires, go back and report all employees you have hired or rehired within the last 180 days. From there, follow the federal or your state guidelines for the reporting timeframe. Penalties may be assessed for failure to report your new hires. Federal law declares that states can fine up to $25 per employee whom you neglected to report. State regulations may vary on this amount, as well as apply non-monetary civil penalties.
Keep in mind that you must also report terminated employees if they have a court-ordered child support withholding notice. Report terminated employees to the agency that issued the withholding order. Be sure to check with your state for guidelines on reporting this information. CLICK HERE (opens in a new window) for more information on reporting terminated employees.
Reporting New Hires in Multiple States
If you are an employer who has employees in two or more states, federal law provides you the option to:
- Report your employees to each state in which they are working
- Designate one state in which any of your employees work and submit all new hire reports to the State Directory of New Hires in that state.
You must notify the Secretary of the U.S. Department of Health and Human Services in writing if you select the second option. You can notify the Secretary and complete the online application to become a multi-state employer using the Multistate Employer Registration Form (opens in a new window).
CLICK HERE (opens in a new window) for FAQs on New Hire Reporting.
To see the New Hire Reporting regulations for your state, CLICK HERE (opens in a new window) for an interactive map provided by the Office of Child Support Enforcement (opens in a new window).
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