What is a new hire report?

What is a new hire report? Definition and meaning

A new hire report informs a state about a newly hired (or rehired) employee who has joined a business. Often, it includes the employee’s name, job title, start date, and other relevant details about their role and responsibilities.

More about new hires reports

Human resources departments often use new hire reports to keep track of and manage the onboarding process for newcomers in their organization. They may also be used to update payroll and benefits records, and to notify other departments or teams within the company about the addition to the team.

What is the purpose of new hire reporting?

When you bring on a new hire (or rehire previous employees), federal law requires that  some basic information be reported within 20 days of hire to the state where the new employee works. Once shared, information is entered into the National Directory of New Hires, which is used by child support agencies to locate a parent who may owe child support and issue an income withholding order. This database was originally established as a result of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and employers play a key role in helping the program to be successful by reporting new hires.

Though Uncle Sam says you need to file a new hire report within 20 days of a new employee’s start date, some states want this information sooner. For example, Georgia requires employers to do this within the first 10 days of employment. It’s also worth noting, that under the law, the employee’s start date is officially considered the first day the individual starts performing services for wages. As opposed to the day an employee may have signed an offer letter or been offered the job by your company.

Which employers are required to file a new hire report?

You may be wondering if new hire reports are required of all types of businesses, big or small. The answer is almost always yes. Under federal law pertaining to new hire reports, an employer is defined in the same way as it is for federal income tax filing requirements. This definition, which can be found in Section 3401(d) of the Internal Revenue Service Code of 1986, encompasses any governmental entity as an employer as well as any labor organization.

But to be safe, at a minimum, if an employer is required to have employees provide a completed W-4 form to start work, then the employer must also adhere to new hire reporting rules.

How do you file a new hire report?

• Many states have websites where you can download a new hire report form, which you can then complete, email, fax, or drop into the mail. Some will accept an employee’s W-4 form too.
• To take care of this reporting, many companies will use payroll software, so they don’t have to manually complete registration forms on their local state’s website.

When should new hire paperwork be completed?

If possible, try to ensure that all paperwork is completed on the first day of work or during the preboarding phase, which is the time between when an employee accepts an offer and actually starts work. Not only can this strategy streamline the onboarding process, it may also help you meet all timelines.

While the W-4 form and Section 1 of the I-9 should be completed on the new hire’s start date, section 2 of the I-9 can be completed within 3 business days. The ACA Notice of Coverage Options must be completed within 14 days of the new hire’s first day of work.

What information is needed for a new hire?

When you report a new hire, you’ll need to provide the following information about them:

• Full legal name and address
• Social Security Number (SSN)
• Hire and start dates
• Eligibility for health insurance
• Details about child support or other court-ordered payments

You’ll also be required to share information about your business, such as your business address and Employer Identification Number (EIN). If your business has multiple work locations, you’ll need to report both your payroll or main address as well as the address of the new hire’s work location.

When do you report new hires?

Per federal law, employers must report new employees to the new hire registry in their state within 20 days of the date of hire. This timeframe might be shorter, depending on the state. In Vermont, for example, employers are required to report new hires within 10 days of the date of hire. As an employer, it’s important to become familiar with the new hire requirements in your state.

Is new hire reporting mandatory in all states?

Yes, all 50 states mandate new hire reporting. New hire allows state agencies to pinpoint parents who owe child support payments and ensure child support is enforced properly. It also helps reduce the risk of fraudulent claims for public assistance programs, like unemployment.

Most states have online forms or portals that can allow you to submit new hire information electronically. Note that some states may require monthly reports while others impose various intervals for reporting. It’s your responsibility to understand and follow the specific guidelines in your state to prevent penalties and other problems related to non-compliance.

Do you have to report new hires to the IRS?

Per the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), you must report all new hires to your state agency, rather than to the IRS directly. Your state will then report your new hires to the federal government.  Depending on your state and preferences, you can submit new hire information via internet, mail, fax, or phone.