Is reporting new employees to the state directory of new hires a new law? If so, when did it go into effect?

For what state? I'm sure there are 50 answers.

As of October 1, 1998, all employers are required to comply with federal and state New Hire reporting requirements. New Hire reporting is the process by which an employer notifies a designated state agency of specific information about each of the employer's newly hired or rehired employees.

This mandate was established by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The purpose of the Act is to create a national directory that will serve to provide an effective child support enforcement program by: locating non-custodial parents; establishing paternity where necessary; and, establishing an order or enforcing an existing order requiring the payment of child support. The national directory will also be used by state agencies operating Employment Security and Workers' Compensation Programs to detect and prevent erroneous benefit payments.

Pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, each state has an established agency, as well as a reporting system, through which all employers can report new hires and rehires. The requirements of each state, however, vary. At minimum, each state must require all employees to report: the name, address, and social security number of each hire or rehire; and the name, address, and federal employer identification number of the employer.

Check with your state's unemployment compensation agency for specifics on your state's requirements.

Bob McComas

In addition to the above, Federal law also provides that reporting be made on a W-4 form or, at the option of the employer, an equivalent form, that may be transmitted in one of three ways: first class mail, magnetically, or electronically. Reports by first class mail must be made within 20 days from the first day services are performed for wages by the individual. Magnetic or Electronic reporting, however, must be accomplished by two monthly transmissions (if necessary) not less than 12 nor more than 16 days apart.

Each state has the authority to vary the specific reporting requirements. For instance, each state can increase the minimum information that must be reported; lessen the number of days by which new hires must be reported; or, provide additional means through which reporting can be made.

Sanctions for failure to comply with the state and federal laws will result in civil penalty. An employer's failure to report new hires or rehires will result in a fine up to $25.00 per unreported individual. Furthermore, if it is determined that, under state law, the failure to report is the result of a conspiracy between the employer and the employee, the fine will be up to $500.00 per unreported individual.