New Hire Reporting Law and Compliance
Indiana Statute IC 22-4-10-8 and the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 42 U.S.C. 653a, requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire date.
New hire reporting is required by law in all 50 states, and has been mandatory since October 1998. Pursuant to federal law, states have the option of imposing civil monetary penalties on employers who fail to report new hires. The fine can be up to $25 per newly hired employee, and if there is a conspiracy between the employer and employee not to report, the penalty can be up to $500 per newly hired employee.
The State of Indiana works with employers to help ensure that all new hires are reported as required. The Federal Office of Child Support Enforcement (OCSE) provides states a quarterly report containing information on employers who may not have reported all new hires as required. Using the quarterly report, our Center may send notices to employers who appear to be non-compliant in reporting their new hires. Aside from providing information on legal requirements, the notice also provides information on how to comply with new hire reporting laws, so employers may avoid future notices.
Using a different FEIN to report your new hires and your quarterly wage information may also cause you to appear as non-compliant. If you have more than one FEIN, please make certain you use the same FEIN you use to report your quarterly wage information when reporting new hires. If you have received a notice, which referenced a lack of compliance, or if you have additional questions about complying with the new hire reporting law, contact us.
New hire reporting is a valuable tool that contributes to the well-being of many families, and assists with preventing fraudulent unemployment payments and/or welfare benefit payments. Learn more about the benefits of new hire reporting.
CLAIMS RESOLUTION ACT OF 2010, SEC. 802. REPORTING OF FIRST DAY OF EARNINGS TO DIRECTORY OF NEW HIRES.
(a) ADDITION OF REQUIREMENT.- Section 453A(b)(1)(A) of the Social Security Act (42 U.S.C. 653a(b)(1)(A)) is amended by inserting "the date services for remuneration were first performed by the employee," after "of the employee,".
(b) CONFORMING AMENDMENT REGARDING REPORTING FORMAT AND METHOD.- Section 453A(c) of the Social Security Act (42 U.S.C. 653a(c)) is amended by inserting ", to the extent practicable," after "Each report required by subsection (b) shall".
(c) EFFECTIVE DATE.- 42 USC 653a note. 26 USC 6402 note. 26 USC 6402. VerDate Nov 24 2008 15:14 Dec 14, 2010 Jkt 099139 PO 00291 Frm 00095 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL291.111 APPS06 PsN: PUBL291 dkrause on GSDDPC29PROD with PUBLIC LAWS 124 STAT. 3158 PUBLIC LAW 111-291-DEC. 8, 2010.
(1) IN GENERAL.- Subject to paragraph (2), the amendments made by this section shall take effect 6 months after the date of the enactment of this Act.
(2) COMPLIANCE TRANSITION PERIOD.- If the Secretary of Health and Human Services determines that State legislation (other than legislation appropriating funds) is required in order for a State plan under part D of title IV of the Social Security Act to meet the additional requirements imposed by the amendment made by subsection (a), the plan shall not be regarded as failing to meet such requirements before the first day of the second calendar quarter beginning after the close of the first regular session of the State legislature that begins after the effective date of such amendment. If the State has a 2- year legislative session, each year of the session is deemed to be a separate regular session of the State legislature.
On October 21, 2011, President Obama signed the Trade Adjustment Assistance Extension Act of 2011 (Public Law 112-40), which amends section 453A(a)(2) of the Social Security Act. The law amends section 453A of the Social Security Act, effective April 21, 2012 as follows: Definition of Newly Hired Employee-Section 453A(a)(2) of the Social Security Act (42 U.S.C. 653a(a)(2)) is amended by adding at the end the following: NEWLY HIRED EMPLOYEE- The term "newly hired employee" means an employee who-(i) has not previously been employed by the employer; or (ii) was previously employed by the employer but has been separated from such prior employment for at least 60 consecutive days.