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Hire Report Importance and Meaning

Updated on: 9th Apr 2024

5 mins read

What is New Hire Report  

A New-Hire Report is like a special paper that shares details about a person you just hired or rehired in a particular U.S. state. It’s sent to the state authorities in charge. This report is important for both completely new hires and those who worked for you but took a break of at least 60 days. 

This document includes the basic info about the person and needs to be sent within 20 days from when the employee starts getting paid. It’s a rule! 

Why is it important to Report 

It’s a must under the law called the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). If you skip it, the state might fine you. Just not doing it properly can lead to a $25 fine, and if you and the employee are up to something fishy, it could go up to $500. Some states might even give you other punishments. 

Well, it helps stop or fix issues like fake claims for workers’ compensation and unemployment benefits. It also makes sure that support money goes to the right parents when child support is involved. 

Ways to file a New Hire Report with the state  

Sending the New Hire Report is like choosing how to mail a special letter to the state about your new employee. You’ve got a few options to make sure the information reaches them. 

  1. Electronic Stuff: This means using computers and the internet. You fill out the details on your computer, and it zips through the internet to the state office. Quick and modern! 
  1. Old-Fashioned Mail: If you like the classic way, you can put the report in an envelope, stick a stamp on it, and send it through the regular mail. Snail mail, they call it. 
  1. Magnetic Tapes: This is a bit old-school. It involves using tapes, like the ones used in old music players, to store the information. But not many people use this method now. 

But hey, it doesn’t end there. Each state can have its own preferences for how they want to get this info. Some might offer online forms, where you just click and type. Others are fine with a simple phone call, where you talk to someone and give them the details. You might also be able to send them an email, or if you’re feeling a bit retro, use a fax machine. 

How is New Hire Report Form made  

When you send in the report, it should have some basic things.  

  • Employee’s name, address, and social security number 
  • Documents to support as proof when they got paid for the first time 
  • Business’s name, address, and FEIN (Federal Employer Identification Number) 
  • W-4 form, a custom one, or the state gives you. 

Does a Relocated Employee need to file New Hire Report 

If someone from your team moves within your company, you don’t need to send a new report. The info from your state gets sent to a big list called the National Directory of New Hires. So, no need to worry about reporting every time someone changes desks. 

Now, what if I’m in charge of a big business that works in different states? Two choices! Either you send reports to the state where the person works or just to one state where you do business. But if you go for the second option, you need to tell the U.S. Department of Health and Human Services secretary about it. 

Conclusion  

The New-Hire Report is like a special paper you send to the state when you hire someone new or bring back an old team member. You must do it within 20 days, and it’s important because it follows the law and helps keep things fair. You can send it in different ways, and there’s a form to fill in with the person’s details. And if someone moves within your company, there is no need for a new report. If you have a big business in different states, you can choose where to send the reports. 

FAQs  

When should I submit a New Hire Report? 

The report must be sent within 20 days of the employee’s first day of paid work. 

Who needs to submit the New Hire Report? 

Employers are responsible for submitting the New Hire Report for each newly hired or rehired employee. 

How does the New Hire Report help prevent fraud? 

The information collected in the report aids in preventing or uncovering workers’ compensation and unemployment fraud by verifying employment details. 

Are there different ways to submit a New Hire Report? 

Yes, there are various methods, including electronic submission, mail, and sometimes even magnetic tapes. States may have their own preferred methods such as online forms, phone calls, emails, or faxes. 

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