New Hire Reporting: Federal

Original Author: Sara M. Wincek

Updating Author: Brightmine Editorial Team

Summary

• Employers are required by federal and state law to report information about newly hired and rehired employees. All 50 states and the District of Columbia require new hire reporting. The information reported aids in both the collection of child support and the detection of fraud in other government programs. Federal law requires employers to collect and transmit specific items of information to state directories for each newly hired or rehired employee. Many states require more information to be reported in addition to the federal requirements. See New Hire Reporting System Overview.
• New hire reports must be transmitted within a certain number of days of the date of hire or rehire. Different time requirements apply in some states, to multistate employers and to reports transmitted electronically or magnetically. Whether an employer has employees in only one state or in multiple states dictates where and on what type of media reports should be submitted (e.g., on paper, electronically or magnetically). Certain multistate employers must first register with the Department of Health and Human Services by completing and submitting a specific form. See When and Where to Report.
• Employers may report new hires on a copy of IRS Form W-4, or, in some states, on an employer created or state provided form. Most states allow employers to transmit the reports in a variety of ways. See Reporting Methods.
• States impose both civil fines and other nonmonetary civil penalties on employers that do not comply with the new hire reporting requirements. See Penalties.