What is a Hire report?
In the US, a hire report is the submission of information to the state about a new or rehired employee in that state. The hired individual may be completely new to the organization, or he or she may have worked for the organization previously but stopped being the organization’s employee for a minimum of 60 consecutive days.
The hiring employer is in-charge of sending in the new hire report, and the report may only need to include a few basic items of information about the employee. The hire report must be sent within 20 days after the hiring date. Some states require an even tighter deadline to file new hire reports.
Is new hire reporting mandatory?
New hire reports are mandatory, as per the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. Employers who do not file hire reports are liable to punishment by the state.
States can fine the employer to $25 for a basic failure to report, or up to $500 for a failure to report because of a conspiracy with an employee. Certain forms of non-monetary punishment are also deemed by the state.
Organizations don’t have to report new hires just to avoid penalties. The information gathered from submitting hire reports helps prevent or reverse worker’s compensation and unemployment fraud, and to reduce occurrences of public assistance going to the wrong individuals. New hire report data is also used by child support agencies to secure child support payments from parents.
Who do you include in a hire report?
Organizations must perform hire reporting on all newly hired employees. Federal law does not require employers to send in a new hire report for anyone who isn’t an actual employee, such as an independent contractor.
However, some states may require this information. To find out if a state that an organization is established in requires it to report new hires, employers need only to consult the state’s guidelines.
What information is required in a hire report?
The PRWORA mandates all employers to report the following data for newly hired employees:
1. Employee name
2. Employee address
3. Social Security Number
4. Date of hire (i.e., the date the employee starts performing their services for pay)
5. Employer name
6. Employer address
7. Federal Employer Identification Number (FEIN)