What is New-Hire Reporting ?
A New-Hire Report is a mandatory document that employers in the United States must submit when they hire or rehire an employee. This report contains important details about the new employee and must be sent to the appropriate state officials within 20 days of the employee's first day of paid work.
Key Points of a New-Hire Report:
Who to Report: It includes employees who are either newly hired or rehired after being absent for at least 60 days.
Deadline: The report must be submitted within 20 days of the employee's start date.
Required by Law: Under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), employers are obligated to submit these reports. Failing to do so can result in fines up to $25, or even up to $500in the case of conspiracy with an employee.
Why Report New Hires?
Prevent Fraud: The data helps prevent unemployment and workers’ compensation fraud.
Child Support: It is often used by child support agencies to enforce child support payments.
Government Benefits: The information helps reduce the number of people receiving public assistance incorrectly.
How to Report:
Employers can report new hires via various methods:
Electronically (e.g., online submissions)
Magnetic Tape (for large-scale data)
First-Class Mail
Alternatively, states may allow submissions through fax, phone calls, or email.
The specific form used to report can be a W-4, a custom form, or a form provided by the state.
Information to Include:
Employee Information: Name, address, social security number, and date of first payment.
Employer Information: Business name, address, and Federal Employer Identification Number (FEIN).
Reporting for Employees Who Relocate:
If an employee relocates within your company, a new hire report is not required. Only new employees or those returning after 60 days need to be reported.
Multistate Employers: You have the option to report to the state where the employee works, or choose one state to report all new hires from multiple locations. If you select the latter option, you must notify the U.S. Department of Health and Human Services.
Filing these reports is a crucial responsibility for employers to ensure compliance and avoid fines while helping in fraud prevention and public assistance management.