New hire reporting
New hire reporting is the federal requirement that employers report each new or rehired employee to a state directory, mainly for child support enforcement.
- LAW
- 42 U.S.C. §653a, State Directory of New Hires
- PENALTY CAP
- $25 per unreported hire, $500 with conspiracy
- DEADLINE
- 20 days from hire (federal); some states are shorter
- WATCH FOR
- Skipping the report for a 60-day rehire
You report seven basic facts about each new employee to the state where the employee works. Federal law sets an outer limit of 20 days from the date of hire, and some states require it sooner. The state forwards each report to the National Directory of New Hires. Child supportChild support withholding. Child support withholding is an employer’s deduction of ordered child support from an employee’s pay, under an Income Withholding for Support order.Click to open the term agencies match the reports against their cases to locate parents who owe support and issue income withholding orders. States also use them to stop or recover erroneous unemployment and workers’ compensationWorkers’ compensation. Workers’ compensation is state-mandated insurance that pays medical expenses and partial lost wages when an employee is injured or becomes ill because of their job.Click to open the term payments.
Who do you report?
You report employees as defined for federal income tax withholding. Wherever you must have an employee complete Form W-4Form W-4. Form W-4 is the IRS form an employee completes to tell their employer how much federal income tax to withhold from each paycheck.Click to open the term, you must also report the hire.
- An employee you have never employed before
- A rehire separated from you for at least 60 consecutive days
- A returning employee who must complete a new Form W-4
- Each individual your staffing agency places and pays
- Your own employees, if you are a labor organization or hiring hall
- An employee back within 60 consecutive days, with no new W-4
- An employee who was never removed from payroll records
- An independent contractor, though some states require it
- A person your agency only refers and does not pay
- A placed individual already reported, with no 60-day break or new W-4
How do you send a report?
The date of hire is the first day the employee performs services for pay. Use the same FEIN for new hire reports and quarterly wage reports, or you can appear noncompliant.
- 01
Collect the seven data elements. The employee’s name, address, Social Security number, and date of hire, plus your name, address, and FEIN.
- 02
Choose the state. Report to the state where the employee works, or, reporting electronically, to your one designated state as a registered multi-state employer.
- 03
Send the report. Use Form W-4 or an equivalent form, by first class mail, or electronically through the options your state offers.
- 04
Meet the deadline. Report within 20 days of hire, or electronically by up to two monthly transmissions 12-16 days apart. Your state may require sooner.
Frequently asked
- 42 U.S.C. §653a, State Directory of New Hires
- Administration for Children and Families, New Hire Reporting
- 42 U.S.C. §653, Federal Parent Locator Service
General information, not legal or tax advice. Apply current federal and state rules with qualified guidance.