What are new hire reporting requirements?

Federal law requires that all states require employers to submit certain information for each new hire. The primary purpose of new hire reporting is to increase the enforcement of child support orders by locating newly hired noncustodial parents who are not meeting their child support obligations. New-hire reporting information is also intended to be used by the states to reduce unemployment and workers' compensation fraud.

How it works. Once the state agency receives new hire information from an employer, it will match that information against a case registry of child support orders issued in the state. It will also forward the new hire information to the National Directory of New Hires (maintained by the Department of Health and Human Services), where a similar matching process will take place with a federal case registry of child support orders. The Federal Case Registry of Child Support Orders will contain information on child support orders issued in all 50 states. If this matching process reveals that a newly hired employee owes outstanding child support, an income withholding order will be prepared and forwarded to the employer.

Under federal law, all states must require employers to submit the following information with respect to each new hire:

• the newly hired employee's name, address and social security number, and
• the employer's name, address and federal EIN number.

These are sometimes referred to as the "federal data elements" required for new hire reporting.

Individual states may require employers to report additional information. Additional data elements required by some states include the new hire's date of hire and date of birth.

No specific federal form required. Information required by federal law may be submitted using Form W-4, Employer's Withholding Certificate, or, at the employer's option, an equivalent form. Many states have developed their own new hire reporting forms. While states cannot require employers to use any particular form to submit the "federal data elements," they can require employers to use a state-designated form to report additional data elements required by the state. So, in those states requiring the use of their own forms, it may be most practical for employers to use the required state form to report the "federal data elements" as well.

How should new hire information be submitted? Employers may submit new-hire information via first class mail, by fax, electronically, or using magnetic media. Employers should check with their individual state to determine the methods available in that state.

What are the deadlines for submission? If sent by mail, new-hire reports must be submitted within 20 days of the date of hire. Reports submitted electronically or magnetically must be submitted twice a month, not fewer than 12 days nor more than 16 days apart.

What if there are employees in more than one state? Employers with employees working in more than one state may choose to satisfy their new-hire reporting requirements by reporting to just one state the new hires in every state in which they do business. To exercise this "multistate option," the employer must notify in writing the U.S. Department of Health and Human Services (DHHS) of the state it has chosen. A Multistate Employer Notification Form for New Hire Reporting may be used to make the notification. Use of the Multistate Employer Notification Form for New Hire Reporting is optional for employers. A copy of the form is available from the DHHS Office of Child Support Enforcement, Administration for Children and Families, http://www.acf.dhhs.gov/programs/cse/index.html, under "New Hire information."

State UI agencies. State unemployment insurance agencies must furnish quarterly wage and unemployment compensation data to the National Directory of New Hires.

What are the state-by-state new-hire reporting rules? Different information on newly hired employees may be required by each state.

• Data. Different information on newly hired employees may be required by each state. Information required by federal law, as mentioned before, includes the employee's name, address and social security number, and the employer's name, address and federal EIN number.
• Deadline (days from hire). New hire information must be sent to the state within a certain number of days of the employee's date of hire.
• Form. Some states have created a form employers may use to report new hires.
• Method of reporting. State laws specify which methods of reporting new hires are available in that state.