Fingercheck’s system is designed to streamline your understanding of one of the essential processes in the realm of payroll management. We are committed to empowering businesses with efficient solutions, recognizing the significance of compliant and accurate new hire reporting.
Navigating through the intricacies of new hire reporting can be daunting, especially with varying state regulations and evolving compliance standards. However, with our expertise and user-friendly software, we aim to simplify this process.
New hire reporting history
New hire reporting was part of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). This landmark legislation introduced new hire reporting requirements with dual objectives aimed at enhancing child support enforcement and combating fraud in government programs.
PRWORA goals
PRWORA, commonly known as welfare reform, established two primary goals for new hire reporting:
Child support enforcement: One key objective of new hire reporting is to facilitate the timely location of individuals who secure employment and have wage garnishments for child support. By promptly identifying newly hired employees, child support agencies can expedite the issuance of income withholding orders, ensuring timely payments for children in need.
Fraud detection and prevention: Another crucial aim is to detect and prevent fraud in government programs such as unemployment insurance and workers' compensation. By requiring employers to report essential employee information, PRWORA helps authorities verify the accuracy of benefit claims and mitigate fraudulent activities.
Employer benefits of new hire reporting
Employers stand to benefit significantly from adhering to PRWORA's new hire reporting requirements. By promptly reporting new hires, they contribute to:
Fraud prevention: Timely reporting enables states to cross-reference employee names against individuals filing claims for unemployment or workers' compensation benefits. This proactive approach helps identify and rectify erroneous payments, safeguarding employers from fraudulent claims.
Compliance: Compliance with new hire reporting regulations ensures that employers fulfill their legal obligations and avoid potential penalties or liabilities associated with non-compliance. By adhering to these requirements, employers demonstrate their commitment to upholding regulatory standards and supporting government initiatives aimed at improving child support enforcement and preventing fraud.
Who should be reported as a new hire?
New hire reporting includes several categories of individuals that should be reported as new hires to comply with regulatory requirements. These typically include:
Employees: Individuals hired to perform work in exchange for compensation should be reported as new hires. This encompasses full-time, part-time, temporary, and seasonal employees.
Rehires: Individuals who are rehired after a period of separation from employment should be treated as new hires and reported accordingly. This includes former employees who return to work for the same employer with a break in their employment of at least 60 days.
Remote workers: Employees who work remotely or telecommute should be reported as new hires, regardless of their physical location. It's essential to capture accurate contact information, including their primary work address.
Interns and trainees: Depending on the nature of their arrangement with the employer, interns, trainees, or apprentices who receive compensation for their services may also need to be reported as new hires.
Temporary workers: Individuals hired through staffing agencies or temporary employment agencies should typically be reported as new hires by the employer for whom wages are paid.
Independent contractors: Independent contractors who meet specific criteria may also need to be reported as new hires. This requirement varies depending on the state.
Fingercheck currently supports new hire reporting for W-2 employees only. Employers will need to submit independent contractors for new hire reporting outside of Fingercheck.
New hire reporting state requirements
Employers are mandated to include specific details in their new hire reports to comply with PRWORA. The minimum requirements include:
Employee details such as their name, address, Social Security Number (SSN), and date of hire.
Employer details include the business name, address, and Federal Employer Identification Number (FEIN).
The Office of Child Support Enforcement (OCSE) lists additional state-specific information about new hire reporting, contact information, reporting time frame, data elements (mandatory and optional), method of transmission, and whether the state requires independent contractor reporting.
State | Reporting Timeframe | Independent Contractor Reporting |
Within 7 days | No | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | Within 20 days of paying or entering into a contract with the independent contractor at least $600 | |
Within 20 days | Yes | |
Within 20 days | Yes, if payment is anticipated to be greater than $5,000/year | |
Within 20 days | Optional for private employers | |
Within 20 days | No | |
Within 20 days | Yes | |
Within 10 days | No | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | Yes | |
Within 20 days | Yes | |
Within 15 days | Yes | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | No | |
Within 7 days | Yes | |
Within 20 days | No | |
Within 14 days | Yes | |
Within 20 days | Optional | |
Within 20 days | Optional for private employers | |
Within 15 days | No | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | Yes | |
Within 20 days | No | |
Within 20 days | Yes, if payment is anticipated to be greater than $2,500 | |
Within 20 days | Yes | |
Within 20 days | Yes | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | Yes, if payment is anticipated to be greater than $2,500 | |
Within 20 days | No | |
Within 20 days | Yes | |
Within 20 days | No | |
Within 14 days | No | |
Within 20 days | Optional | |
Within 20 days | No | |
Within 20 days | No | |
Within 20 days | Yes | |
Within 20 days | No | |
Within 10 days | No | |
Within 20 days | Yes | |
Within 20 days | No | |
Within 14 days | Yes, when payment for services is $2,500 or greater | |
Within 20 days | No | |
Within 20 days | No |
FAQ
What is new hire reporting?
New hire reporting is a mandatory process whereby employers are required to report information about newly hired employees to designated state agencies. This information is used for purposes such as child support enforcement, detecting fraud in government programs, and maintaining accurate employment records.
Why is new hire reporting required?
New hire reporting is required to support initiatives such as child support enforcement and fraud prevention in government programs. By promptly identifying newly hired employees, state agencies can ensure that child support obligations are met and that benefits such as unemployment insurance and workers' compensation are distributed accurately.
What information must be reported for new hires?
Employers typically need to report essential information about new hires, including their name, address, Social Security Number (SSN), date of hire, and employer's name and address. Additional details may be required, depending on state-specific reporting requirements.
When should new hires be reported?
New hires should be reported within 10 to 20 days after the employee's start date. It's essential for employers to adhere to these deadlines to ensure compliance with reporting requirements.
Do I need to submit a new hire report for an employee I rehired after a layoff or leave of absence?
You should report any employee that is rehired within 60 days of returning to work after being terminated or laid off.
Who is responsible for submitting new hire reports?
Employers are responsible for submitting new hire reports to designated state agencies. This responsibility typically falls on the employer's HR department or payroll administrator. Fingercheck offers new hire reporting for all our payroll clients.
What if I have employees in multiple states?
If you hire employees who work in multiple states, you have two options on how you would like to report new hires:
Report new hires to the state where that employee works*, or
Report new hires to one state by registering with the U.S. Department of Health and Human Services as a multi-state employer.
*Fingercheck will submit new hire reports to the state where that employee works.
What are the consequences of not reporting new hires?
Non-compliance with new hire reporting requirements can result in penalties and fines imposed by state agencies. These penalties vary depending on the severity and duration of non-compliance.
What should I do if my new hire quits before I submit their new hire report?
You are still required to submit a new hire report for that employee.
How can I ensure compliance with new hire reporting?
You can ensure compliance with new hire reporting requirements by establishing internal processes and procedures for the timely reporting of new hires. This may include educating HR staff and payroll administrators about reporting obligations and implementing systems to capture and transmit the required information accurately. Make sure to update an employee’s status in Fingercheck.
How does new hire reporting benefit employers and employees?
New hire reporting benefits employers by facilitating compliance with state regulations, preventing fraud in government programs, and supporting initiatives such as child support enforcement. For employees, accurate reporting ensures timely access to benefits and services for themselves and their families.
Who will submit the new hire report for employees from a temporary agency?
The temp agency will be responsible for submitting the new hire report for employees that they are responsible for paying wages.
Please note that these FAQs provide general information, and individuals are encouraged to refer to official documentation and authorities for specific details and guidance regarding new hire reporting.
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