State New Hire Reporting: Deadlines and Data Requirements

Operational Overview of New Hire Reporting

Under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, all employers are federally mandated to report newly hired and rehired employees to a designated State Directory of New Hires (SDNH). This data is primarily used for child support enforcement and the prevention of fraudulent unemployment insurance claims.

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Mandatory Reporting Deadlines

While federal law sets a baseline, individual states have the authority to implement stricter timelines. Employers must adhere to the following:

• Standard Federal Deadline: You must report within 20 calendar days of the employee's first day of work.
• Electronic Filing: Employers who transmit reports magnetically or electronically must send two monthly transmissions, if necessary, which are between 12 and 16 days apart.
• State Variations: Some states (e.g., Massachusetts) require reporting within 14 days. Always verify with your specific SDNH to avoid non-compliance penalties.

Required Data Points

Federal law requires a minimum of seven specific data elements. Most states use the W-4 form as the reporting base, but additional fields may be required depending on the jurisdiction.

Employee Information

• Full Name: Legal name as it appears on the Social Security card.
• Address: Current residential address.
• Social Security Number (SSN): Must be verified for accuracy.
• Date of Hire: The first day the employee performs services for wages.

Employer Information

• Federal Employer Identification Number (FEIN): The 9-digit number assigned by the IRS.
• Legal Business Name: The name associated with the FEIN.
• Payroll Address: The address where child support income withholding orders should be sent.

Multi-State Employer Reporting

If you have employees in more than one state and you report electronically, you may designate a single state to which you report all new hires. To do this, you must:

1. Register with the Department of Health and Human Services (HHS) as a multi-state employer.
2. Identify the specific state you have chosen for all reporting.
3. Submit all reports to that state's SDNH electronically.

Penalties for Non-Compliance

Failure to report can result in financial liabilities. Federal law allows states to impose a civil money penalty of up to $25 per newly hired employee. If the failure is the result of a conspiracy between the employer and employee to not report, the fine can increase to $500 per newly hired employee.