Registration of new employees with the state

Whether you're establishing a new business or have been recruiting for years, you must register any new employees with the state—and failure to do so can result in financial penalties.

The Personal Responsibility and Work Opportunity Reconciliation Act, generally known as welfare reform, mandates that all companies report specific information about newly hired employees to a designated state agency. New hire reporting necessitates some planning and documentation, but don't worry!

For reporting reasons, who is considered a "new recruit"?

The need to report extends to any employee who:

You have not previously worked, or you have previously worked but have not worked for at least 60 days in a row.

Why is it necessary for businesses to report new workers to the government?

These data are used by the government for a variety of things, including the following:

To assist in locating parents who owe child support but reside in a distant state from their kids

To identify and stop fraudulent payments made through various public assistance programs, including those for workers' compensation and unemployment insurance (like food stamps and Medicaid)

Which details do I have to report?

State-by-state variations exist, but generally speaking, PRWORA mandates employers to disclose the following:

• The complete name of the employee
• The place of employment
• The Social Security number of the employee
• When you were hired (the day an employee first performs services for wages)
• The company's or employer's full name
• The location of the company or employer
• The federal Firm Identification Number of the company or employer

Some states demand more information.

What if I don't have all of that information?

Most of the data should be gathered when an employee completes a Form W-4.

Before reporting personnel, you must get a Form for your company by submitting Form SS-4. You can follow all the instructions in this tutorial to set up your firm.

Fill out Form SS-5 if you don't have a Social Security number, as an employee.

Should I use the employee's workplace address or the address of our payroll office?

When an employee works at a different address than the one used for payroll, both addresses must be reported.

What must I do if my new employee leaves before their first official new hire report is due?

You must continue to submit a new hire report so that the federal government has a record of this hire, even if the employee resigns.

How do I file a new hire report?

The State Database of New Hires in the state where the person works is usually where you report the information. Depending on the state, you may submit your report through fax, first-class mail, or online.

Here is a useful list of where you may locate your state. Additional state-specific details about new hire reporting contacts, deadlines, mandatory and optional data elements, and transmission methods are available here.

If I rehire a worker after a layoff or leave of absence, do I still need to register them?

Maybe. Employees who need to fill out a new Form W-4 or who have been let go from your company for at least 60 days in a row should be reported. However, You are not obligated to register a returning employee as a new hire, if they were never formally fired or removed from the payroll records.

What about agency-hired temporary workers? Will the organization handle reporting?

Depending on who pays the temporary workers. You must register people as new hires if you, as the employer, actually hire and pay them, whether on a full- or part-time basis. However, if an agency is responsible for paying the salary, it must also handle the reporting. Make sure you get in touch with the organization to verify correct reporting takes place so you can avoid penalties.

What if I have workers in different states? How do I add them to my new hire database?

1. When it comes to reporting new recruits to the state if you pay employees in more than one state, you have two choices:
2. Report new recruits to the states in which they are employed, or choose one state in which you have employees and report all new hires there, regardless of where they are employed.

You must register with the U.S. Department of Health and Human Services as a multistate employer if you decide to report all new recruits to one state. You can register online or download and complete a paper registration form, which you can then send or fax.

You will choose the state to which you will report after registering. No more than twice a month, you should electronically report new hires

Can I get some help with new hire reporting?

By following the preceding processes, a service provider can register an employer. However, you can only choose a state for reporting reasons if you have employees there.

Let's take an example where you have employees throughout the USA but use a payroll service with clients across all states. The payroll service provider can set you up as a multistate employer, but you get to choose the state where you'll file your reports.

Multistate Compliance Preprocessor by Proautomation

Maintaining compliance can be a challenging and delicate procedure for organizations that are unaware of Colorado employment laws and requirements. As a result, Proautomation has created a very useful tool for businesses looking to hire out-of-state employees in Colorado. For more on how to employ out-of-state workers in Colorado and provide for them while they are traveling, check out our website and other services.

• New Hire Reporting
• W2 self-service
• Electronic reporting for IRS and SS
• SSN verification
• Electronic paystubs delivering
• OFX processing
• Paycheck calculator
• State Tax Filing
• Internal Revenue Service
• Payroll Services
• Tax dispute resolution
• Tax help
• Tax resolution services