When you hire a new employee, there are many things to do. One important task is filing a new hire report.
But what is a new hire report? Why do you need to file one? And what are the requirements? Let’s dive in and learn all about new hire reporting.
What Is A New Hire Report?
A new hire report is a document that employers must send to their state when they hire a new employee. It includes information about the employee, such as their name, address, and Social Security number.
The purpose of the report is to help the government track down people who owe child support, unemployment insurance, or other types of debt.
Why Is New Hire Reporting Important?
New hire reporting is important for several reasons:
- It helps enforce child support orders. When a new employee is reported, the state can check if they owe child support and take action if needed.
- It helps prevent fraud in unemployment insurance and workers’ compensation programs. By cross-checking new hire reports with claims, the state can identify people who are working while also collecting benefits.
- It saves taxpayers money. By reducing fraud and abuse in government programs, new hire reporting helps ensure that funds are used for their intended purposes.
Federal Requirements For New Hire Reporting
Under federal regulations, all employers must report new hires within 20 days of their start date. This includes full-time, part-time, and temporary employees.
The report must include the following information:
- Employee’s name, address, and Social Security number
- Employer’s name, address, and Federal Employer Identification Number (FEIN)
- Employee’s start date
Employers can submit new hire reports by mail, fax, or online, depending on their state’s requirements.
State Requirements For New Hire Reporting
In addition to federal requirements, each state has its own new hire reporting laws. Some states have shorter deadlines or require additional information. For example:
- In California, employers must report new hires within 20 days of their start date. The report must include the employee’s name, address, Social Security number, and start date, as well as the employer’s name, address, and FEIN.
- In Texas, employers must report new hires within 20 days of their start date. The report must include the same information as required by federal law.
- In Florida, employers must report new hires within 20 days of their start date. The report must include the employee’s name, address, Social Security number, and start date, as well as the employer’s name, address, FEIN, and state unemployment insurance account number.
To find out the accurate requirements for your state, you need to first visit the OCSS website. There you will find a map with relevant links to the state websites.
Select your state and the relevant state website link will open. From there you can find all the new hire reporting requirements for your state.
How To File A New Hire Report?
1. Gather The Required Details
Before you start, make sure you have all the necessary information about your new employee. This includes their full name, address, Social Security number (SSN), and date of hire.
You’ll also need your company’s name, address, and Federal Employer Identification Number (FEIN).
2. Determine Your State’s Requirements
Each state has its own new hire reporting requirements.
Some states require additional information, such as the employee’s date of birth or wages, while others have shorter reporting deadlines or other regulations.
3. Choose A Reporting Method
Most states offer several options for submitting new hire reports, including online, mail, or fax.
Online reporting is often the most convenient and efficient method, as it allows for immediate confirmation and reduces the risk of errors.
However, if you prefer to send your reports by mail or fax, make sure to use the correct address or fax number provided by your state.
4. Submit The Report
Once you have gathered all the required information and chosen your preferred reporting method, it’s time to submit the new hire report.
If filing online, follow the instructions on your state’s website and enter the information accurately. If filing by mail or fax, use the designated form and make sure it is legible and complete.
5. Keep Records
After submitting the new hire report, keep a copy for your records. This can be a digital copy if you filed online or a physical copy if you submitted by mail or fax.
Maintaining accurate records is essential for demonstrating compliance and resolving any potential discrepancies in the future.
A good employee onboarding software can help in easily managing all employee records.
6. Meet The Time Limit
To avoid penalties, ensure that you file your new hire reports within the specified timeframe.
The federal deadline is 20 days from the employee’s start date, but some states may have shorter deadlines. If you are unsure about your state’s deadline, check with the appropriate agency or consult their website.
Tips For A Smooth New Hire Reporting Process:
- Develop a system for collecting and organizing new hire information to simplify the reporting process.
- Assign a dedicated staff member to handle new hire reporting and ensure they stay updated on any changes to federal or state requirements.
- If you have employees in multiple states, make sure you comply with each state’s specific reporting requirements.
- Consider using an automated new hire reporting service, particularly if you have a large number of employees or operate in several states.
- Regularly review your new hire reporting process to identify any areas for improvement and ensure ongoing compliance.
What Happens If You Don’t File A New Hire Report?
Failing to file a new hire report can result in penalties. The amount varies by state but can be as much as $25 per employee, up to a maximum of $500 as a penalty. In addition, some states may impose criminal penalties for willful failure to report new hires.
To avoid penalties, make sure you understand your state’s requirements and file your reports on time. If you’re unsure about anything, contact your state’s new hire reporting office for guidance.
Frequently Asked Questions:
Do I Have To Report New Hires That Are Contractors?
It depends on the type of contractor. If you hire an independent contractor who is an individual and not part of a business, you generally don’t need to report them as a new hire.
However, if you hire a contractor who is an employee of a contracting company, the contracting company is responsible for reporting the new hire.
What If I Hire A Seasonal Or Temporary Employee?
You must report all new employees, including seasonal and temporary workers. Even if an employee only works for a short period, you are still required to submit a new hire report.
How Long Do I Have To Submit A New Hire Report?
The federal deadline for reporting new hires is 20 days from the employee’s start date. However, some states have shorter deadlines, so it’s essential to check your state’s requirements.
For example, in Texas, you must submit a new hire report within 20 days of the employee’s start date, while in California, the deadline is within 20 days of the start date.
What If I Forget To Submit A New Hire Report?
If you forget to submit a new hire report, do so as soon as possible. Depending on your state, you may face penalties for late reporting.
These penalties can range from a few dollars to several hundred dollars per employee. To avoid fines, make sure you have a system in place to track and report new hires promptly.
Can I Submit New Hire Reports Online?
Yes, most states offer online reporting options for new hires. This is often the most convenient and efficient method, as it allows for immediate confirmation and reduces the risk of errors. Check your state’s new hire reporting website for instructions on how to submit reports online.
What If I Don’t Have All The Required Information?
If you don’t have all the required information when you need to submit a new hire report, provide as much as you can and submit the report on time.
You can always update the report later with any missing information. The most important thing is to meet the reporting deadline to avoid penalties.
Do I Need To Report New Hires If I Have No Employees?
If you are a sole proprietor or partnership with no employees, you generally don’t need to submit new hire reports. However, if you hire an employee in the future, you will need to start reporting new hires.
What If I Hire An Employee Who Works In Another State?
If you hire an employee who works in another state, you must follow the new hire reporting requirements for that state. This means you may need to submit reports to multiple states if you have employees working in different locations.
Can I Outsource New Hire Reporting?
Yes, you can outsource new hire reporting to a third-party provider. Many payroll and HR service providers offer new hire reporting as part of their services. This can be a good option if you have a large number of employees or operate in multiple states.
How Long Do I Need to Keep New Hire Reporting Records?
You should keep copies of your new hire reports for at least four years. This is the federal requirement, but some states may have longer retention periods.
Keeping accurate records is essential for demonstrating compliance and resolving any potential discrepancies in the future.
Final Thoughts
New hire reporting is an important responsibility for employers.
By filing timely and accurate reports, you can help enforce child support orders, prevent non-compliance of government programs, and save taxpayers money. Plus, it’s the law.
To make sure you’re in compliance, familiarize yourself with your state’s requirements and develop a process for gathering and submitting all the necessary details.
Need more help? Connect with our HR experts at hrtech, who can understand your unique challenges and help in simplifying your HR processes. Contact us now to learn more!
