Report of New Employees
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 is a welfare reform law that requires employers to notify the state of all new hires. This information is used to locate individuals who are delinquent in child support payments. States were required to implement a Directory of New Hires by 10/1/1997, or if the state that already had the directory they were to conform to federal requirements by 10/1/1998. States must report New Hire data to the Federal Parent Locator Service (FPLS). Also, states must conduct data matches between their delinquent support payment case registry and new hire directory.
The federal requirements include:
- Employers must report new hires within 20 days after the hire
or first pay.
Note: Outside payroll services will often perform this reporting requirement for a small fee. - Employers have the option of using the W-4 form or an equivalent to report new hires.
- States may establish an earlier reporting deadline for employers.
- Multistate employers may report to one state.
- States have the option to set employer penalties of less than $25 ($500 for a conspiracy).
- The deadlines for information are as follows:
- Within five days of receipt, states must enter new hires;
- Within three days of entry to the state directory, states must transmit data to the national directory;
- Within two days of entry to the state directory, states must send a withholding notice to the employer.
Employers have 7 business days after payday to send withholding to the state disbursement unit. Employer's principle place of employment determines which state law the employer must comply with in responding to an employee's withholding notice.
