Free phone support: (610) 265-7008Electronic New Hire Reporting
Helps protect your company from penalties due to mistakes or late filings. Complete Payroll Resources processes the necessary forms, helping you stay in compliance with federal and state-mandated new hire reporting.
What is the New Hire Reporting Program?
New hire reporting is the process by which you, as an employer, report information on your newly hired employees to a designated state agency shortly after the date of hire. New hire reports are matched against child support records at the state and national levels to locate parents who owe child support. This is especially helpful for interstate cases (in which one parent lives in a different state from his or her child), which are often the most difficult cases for states to resolve.
With new hire reporting, state child support enforcement agencies have the ability to issue income-withholding orders - the most effective means of collecting child support - more quickly.
New Hire Reporting Instructions (Which Complete Payroll Resources does for you)
Purpose - The state child support agency does two things with the new hire data. First, the agency compares the information submitted against current state child support files to locate parents. Second, the agency promptly passes the new hire information to the National Directory of New Hires, a component of the Federal Parent Locator Service within the Federal Office of Child Support Enforcement. This service compares the data from the employer's state with child support information from other states and, when a match is found, provides the information to the appropriate state agency.
Data Elements - Federal law requires employers to collect and transmit seven data elements to fulfill their new hire reporting responsibilities. Many states require additional information beyond the seven data elements below:
| Data Element | Definition |
|---|---|
| Employer Name | Name associated with the Federal Employer Identification Number (FEIN) |
| Employer Address * | Address associated with the FEIN entity that employs the individual |
| Federal Employer Identification Number (FEIN) | Nine-digit number assigned to the employer by the Internal Revenue Service |
| Employee Name | Full name associated with that employee's Social Security number |
| Employee Address | Current residential address of the new employee |
| Employee SSN | Nine-digit Social Security number assigned to the employee by the Social Security Administration |
| Date of hire | The date services for remuneration were first performed |
Reporting Medium - Payroll professionals will recognize that these data elements are identical to those collected on the Federal Form W-4, required from all new employees in order to add them to the firm's payroll roster. Accordingly, many employers send copies of the W-4 as their official new hire report. Employers may also create their own report form or use a state-designed form. Many states accept, at the employer's option, input through the following media: 1) mail, 2) fax, 3) interactive telephone systems, 4) e-mail over the internet, 5) state websites and 6) other electronic or magnetic media.
Reporting Frequency - According to federal law, employers must submit information on every new hire within 20 days of the date of hire, unless the submission is made electronically or magnetically. An employer reporting electronically or by magnetic medium must submit two transmissions each month (if necessary, based on the volume of hiring) not fewer than 12 days nor more than 16 days apart.