A New Hire Report is a form employers use to report new employees or contractors to the proper government agencies. It's also called an Employment Eligibility Verification Form (I-9) or Income Tax Withholding Form (W-4).
The purpose of this form is to ensure that employees are legally eligible to work in the United States, as well as collect information for state agencies.
This information is used for tax purposes and tracking basic employee information such as date of hire, social security number, and employer name.
Federal law requires new hires to be reported within 20 days from their start date on the job for employers to comply with tax regulations.
Is It Mandatory to Report New Hires?
Yes, all businesses in the United States must report any newly hired or rehired employee who works more than 31 hours per week and draws paychecks at least monthly or more frequently.
Employers are required by state and federal laws to submit employment verification forms within 20 days of each new hire's start date.
Each state has its own new hire reporting requirements that should be met for employers not to face penalties or fines.
Who Must Report New Hires?
All employers who have hired an employee are required by federal law to submit their new hire reports regardless of whether they're hiring full-time or part-time staff members, contractors, or freelancers.
Even seasonal workers should be reported correctly according to regulations by each respective state's Department of Workforce Development office and IRS regulations governing taxation-related matters about reporting your payroll taxes.
Methods of Reporting New Hires
There are three main methods used for submitting new hire reports:
Electronically via the internet using particular HR software
Manually via written forms typically called "New Employee Information Sheet" filled out during the job interview process where potential candidates provide their name, address, contact information, and other pertinent details requested by prospective employers
Some states provide extra options for submitting reports, including fax, phone, and website reporting.
Alternatively, you can file the new hire information using the W-4 Form or your company's custom-designed form.
Process of Filing New Hire Reports Within a State
The process of filing a new hire report in the state will depend on which state you operate in.
Generally speaking, employers must register with the appropriate agency usually within 10 days after hiring a new employee and submit their new hire reports within 20 days of onboarding each employee.
Some states require monthly reporting, while others accept quarterly or semi-annual filings. It is essential to be aware of all applicable regulations for your particular state, as failure to comply can result in penalties and fines from federal agencies responsible for enforcing labor laws.
Information to Include in a New Hire Reporting Form
When submitting a new hire report, employers must include information about their employees, including the following:
Employee full names
Federal Employer Identification Number
Date of Hire
Social Security number
Date of birth
Some forms may also require additional information, such as pay rate or marital status, if relevant to the employer's tax withholdings or insurance policies.
You can make your work easier by attaching a form with the information you need to complete the paperwork from the hire in their onboarding packet.
Is a New Hire Report Necessary Upon Relocation?
Yes, employers must report any new hires, even if the employee is relocating from one state to another. This information is required by the Federal Government and the applicable state agencies to track employment status across multiple locations properly.
Is a New Hire Report Necessary for Contractors?
Yes, contractors are also considered "employees" under labor laws and must be included when submitting a new hire report. The same information that would be provided for full-time employees should be included on contractor forms as well.
Helpful Tips For New Hire Reporting
Use secure methods for transmitting sensitive information electronically when possible
Check applicable rules for your particular state regularly to make sure you remain compliant
When filling out forms manually, double-check the accuracy to avoid mistakes
Submit forms on time per the set deadline
Utilize available resources like software programs and automated solutions help streamline the process
Consult knowledgeable experts specialized in this field to ensure everything runs smoothly
Keep records organized and accurate updating any changes necessary
Make sure you understand the potential consequences of failing to meet deadlines
Stay informed and aware of the latest developments to ensure success
Prioritize and carefully allocate resources to maximize efficiency