New Hire Reporting Frequently Asked Questions
The following questions and answers are intended to help employers understand and comply with the new hire reporting requirements.
What is New Hire Reporting?
New hire reporting is a process by which employers submit information on newly-hired and re-hired employees
to a designated state agency within 20 days of hire. The goal of the law is to increase child support
collections, and reduce public assistance payments.
Why do we need New Hire Reporting?
New hire reporting speeds up the income withholding process, expedites collection of child support from
parents who change jobs frequently to avoid paying support, and quickly locates potential parents to establish
orders for support. New hire reporting helps children receive the support they deserve.
How will the information be used?
New hire information will be matched against other state’s child support obligor records to locate
missing parents, establish child support orders, and enforce existing orders. Once these matches are done,
the new hire information is sent to the National Directory of New Hires for other states to compare with
their own records.
What are the advantages for employers?
New hire reporting provides flexible reporting methods with minimal costs, and creates one central reporting
location.
Do I have to report re-hired employees who return to work from a leave of absence?
If the employee returning to work is required to complete a new W-4 form, the employer must report
the individual as a new hire. If, however, the returning employee had not been formally terminated or
removed from payroll records, there is no need to report that individual as a new hire. If the individual
was under income withholding when previously employed by that employer, the employer would still be required
to withhold income accordingly.
Do temporary services have to report their new hires for every assignment?
Temporary services are responsible for reporting their workers who sign a W-4 form and report to a client.
They do not have to re-report a temporary worker unless there is a break in service from the agency and
a new W-4 form is required.
If I take over a business, do I have to report all the employees?
No, not if these employees have previously been reported, but employers must report new hires for the
new business.
Are labor unions and hiring halls required to report?
Labor Unions and hiring halls must report their own employees, that is, individuals who work directly
for the labor union or hiring hall. If the labor union or hiring hall simply refers individuals for employment,
a new hire report does not need to be filed.
As a multi-state employer, do I have to report to each state in which I have employees?
If you are a multi-state employer, you may report newly hired employees to the state in which they are
working or you may select one state to which to report all of your new hires. If one state is chosen,
your new hire reports must be submitted by magnetic tape or electronically. Contact the state you wish
to report to for the data specifications and file layout for reporting electronically or by magnetic tape.
If you choose to report new hire data on all employees to only one of the states in which you have a presence,
you must comply with the following: Notify the Secretary of Health and Human Services, in writing, which
state you have designated as recipient of all your new hire information for your entire business. Mail
the notification to:
Department of Health and Human Services
Multi-state Employer Registration
Office of Child Support Enforcement
Box 509
Randallstown, MD 21133
Report your new hire information twice a month, not less than 12 nor more than 16 days apart.
How will states in which I have employees working know that I have selected another state to
receive my new hire reports?
The National Directory of New Hires will maintain a list of multi-state employers and their designated
reporting locations. This data will be made available to all states.
Do I have to include my FEIN on line 10 of the W-4? The instructions say to only include it
if I sent it to the IRS.
Yes, if you are sending your reports by W-4, you need to include employer name, address and Federal employer
identification number. We suggest you complete the employer information once, and make photocopies.
Can I report employees using outdated W-4 forms?
Yes, but if you need new W-4 forms, please call the Internal Revenue Service.
