New hire reporting requires employers to report each new employee to their state's directory within 20 days of hire, supporting child support enforcement nationally.
Why new hire reporting matters for employers
Federal law (Personal Responsibility and Work Opportunity Reconciliation Act of 1996) requires all employers to report newly hired employees to their state's new hire registry within 20 days of hire. States transmit this data to the National Directory of New Hires, which is used primarily to locate non-custodial parents who owe child support and to issue income withholding orders.
The minimum information required for new hire reporting includes the employee's name, address, Social Security number, date of hire, and the employer's name, address, and federal EIN. Many states also require the employee's date of birth, salary, and whether the employer offers health insurance.
Employers who use electronic filing may report twice monthly (no more than 16 days apart) in lieu of the 20-day deadline. Multi-state employers who employ workers in multiple states may elect to report all employees to a single designated state.
New hire reporting also helps states detect unemployment insurance fraud (individuals who claim benefits while employed), match Medicaid recipients, and enforce support obligations. The data-sharing infrastructure makes new hire information available nationally within 48-72 hours of state submission.
Penalties for failure to report new hires vary by state, typically ranging from $25 to $500 per unreported employee. Some states impose higher penalties for conspiracy between an employer and an employee to avoid reporting. Rehires who have been separated for 60 or more consecutive days must also be reported as new hires.
How BEG handles new hire reporting for clients
BEG Managed Payroll submits new hire reports to the appropriate state agencies within required deadlines as part of fully managed payroll at $25-$45 per employee per month. Learn about BEG Managed Payroll.
Frequently asked questions
Does new hire reporting apply to independent contractors?
The federal requirement applies to employees, not independent contractors. However, some states have extended reporting requirements to contractors paid $600 or more in a calendar year.
What is the deadline for new hire reporting?
The federal deadline is within 20 days of the date of hire. States with twice-monthly electronic reporting may accept reports up to 16 days apart instead.
Do rehired employees need to be reported?
Yes. If an employee was separated and returns after 60 or more consecutive days of separation, they must be reported as a new hire. Employees recalled within 60 days of separation generally do not need to be re-reported.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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