A new hire report is a mandatory submission employers make to their state, notifying them when a new employee (or rehire) joins the workforce. This report typically includes details like the employee’s full name, position, start date, and other relevant employment information.
Why New Hire Reports Matter
Human Resources teams rely on new hire reports to help manage onboarding and update internal systems, such as payroll and benefits. Tools like Beyond can streamline this process by automatically reporting the required data and notifying relevant departments of staffing updates.
Legal Requirements for New Hire Reporting
Federal law requires employers to submit basic information about new employees within 20 days of their official start date to the state where the individual will work. This information is added to the National Directory of New Hires, a federal database used by child support enforcement agencies to locate noncustodial parents and issue wage garnishments if needed. The system was created under the 1996 Personal Responsibility and Work Opportunity Reconciliation Act, and employer participation is essential to its success.
State-Specific Timelines and Definitions
Although the federal rule gives you 20 days, some states enforce shorter deadlines. For instance, Georgia mandates submission within just 10 days. The employee’s official “hire date” is defined as the first day they perform work in exchange for pay, not the date they signed their offer letter.
Who Must Submit New Hire Reports?
Virtually all employers, regardless of size, are subject to new hire reporting laws. According to the IRS Code (Section 3401(d)), the term “employer” applies to public agencies, private businesses, and labor organizations. If you’re required to collect a W-4 form from an employee, you’re also obligated to comply with new hire reporting requirements.
How to Submit a New Hire Report
Most states offer downloadable forms or online portals to submit new hire data. Acceptable submission methods may include email, mail, fax, or even using an employee’s W-4 form in some cases. To simplify compliance, many companies rely on payroll software providers like Beyond, which handle this reporting automatically as part of the onboarding workflow.
When Should You Complete the Paperwork?
Ideally, onboarding paperwork should be finalized either before the first day or on day one of employment. Early completion supports a smoother onboarding process and helps employers meet reporting deadlines. Section 1 of the I-9 and the W-4 should be completed on the employee’s start date, while Section 2 of the I-9 can be completed within three business days. Employers must also provide the ACA Notice of Coverage Options within 14 days.
What Information Must Be Reported?
When submitting a new hire report, be prepared to provide the following:
- Employee’s legal name and current address
- Social Security Number (SSN)
- Hire date and first work date
- Health insurance eligibility
- Any applicable court-ordered deductions (e.g., child support)
You’ll also need to provide employer information, including your business name, address, and Employer Identification Number (EIN). If the employee works at a different site from the primary business location, that address must also be included.
Deadlines and Reporting Frequency
Federal regulations require employers to report new hires within 20 days, but some states, like Vermont, have tighter deadlines, such as 10 days. Make sure you understand your state’s specific requirements to stay compliant and avoid penalties.
Is New Hire Reporting Required in Every State?
Yes. All U.S. states mandate new hire reporting to support child support enforcement and reduce fraud in public programs like unemployment insurance. Many states offer user-friendly platforms for electronic submission. Reporting frequency may vary, some require monthly updates, while others may request them more frequently.
Do You Report New Hires to the IRS?
No. Reports must be submitted to your state’s designated agency, not directly to the IRS. Your state then forwards the data to the appropriate federal databases. Depending on your location, you can file reports online, by phone, by mail, or by fax.