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The Beginner's Guide to New Hire Reporting

May 19, 2021 2:49:25 PM / by CSI Accounting Staff posted in small business taxes, small business payroll, small business operations

When we sit down with clients who don't have an HR department, they often ask us about new hire reporting. While we recommend that businesses of all sizes work with at least one HR professional (even if it requires partnering with an outsourced company rather than hiring internally), this is one of those things that can be done by the business owner - with the right knowledge, of course. Here's what you need to know.

Blog - The Beginners Guide to New Hire Reporting

We provide new hire forms in the Client Center on our website.

While some of this is specific to Minnesota, we accept clients in 48 states.

Here's our client center! If you look on the right side under "Payroll Resources", you'll see a section that says "New Hire Information & Other Employment Paperwork". Here, you will find:

  • Form W-4
  • Form W-9
  • Form I-9
  • Forms & information specific to Minnesota (see below)

For Minnesota clients, we also offer the W-4MN form, Minnesota new hire information, Minnesota new hire reporting form, and Minnesota employee notice form. If, for some reason, different forms are needed (for example, a client is located in a different state), we are happy to help them find the correct paperwork. 

SHRM provides a handy toolkit for complying with new hire reporting requirements.

SHRM is one of the best online resources for HR topics, and this article tells you everything you need to know about new hire (and rehire) reporting. In this toolkit, they answer:

When do you need to report a new hire?

New hires must be reported within 20 days of their first day working for the company, although some states may choose to have a shorter time frame. You should always ensure your state does not have a different deadline than federal law. If you're reporting electronically, SHRM says you must make two monthly transmissions between 12 and 16 days apart.

What data do you need to report?

All employers are required to report the following data elements to a designated state agency:

  • Employee name
  • Employee address
  • Employee Social Security number (SSN)
  • Employee date of hire or rehire (the date a new or rehired employee first performs services for pay)
  • Employer name
  • Employer address
  • Federal employer identification number (FEIN)

The seven data elements above are found on the federal W-4. Since the W-4 is already required from all new employees to add them to your payroll, many employers send copies as their official new hire report. You may wish to check the SSN against your employee's name before submitting the information by using the Social Security Number Verification Service. Some states may require additional data.

How do you send the report?

Reports must be made either on a copy of the W-4 or a form that you create which contains the same information. Some states have also created other forms to use. You should have a state contact for new hires who can give you in-depth instructions on how to report, specific elements to report on, and technical information should you choose to report electronically. Many states accept reports via:
  • Mail
  • Fax
  • Interactive telephone systems
  • E-mail
  • State websites
  • Other electronic media

What if you employ workers in more than one state?

SHRM also mentions that many states require additional information. If a business employs workers in multiple states, "a Multistate Employer Registry is available, which allows an employer to report all its new hires in any state where it has employees." To clarify, you can either report the each employee in each of the states where they work, or you can report all of the employees to just one state where some employees are working.

If you choose to do the latter (just report to one state), then you must submit electronically or with magnetic tape. You must also notify the Secretary of the U.S. Department of Health and Human Services so the National Directory of New Hires can keep track of you as a multistate employer and your designated reporting state. To do this, you must register in writing in any of the following ways:
  • Mail: U.S. Department of Health and Human Services
    Office of Child Support Enforcement
    Multistate Employer Registration
    P. O. Box 509
    Randallstown, MD 21133
  • Fax: (410) 277-9325 (fax)
  • Email: MSEdb@acf.hhs.gov

What if you have temporary employees?

You might decide to work with a temporary employment agency if you're looking for additional help. In the case that the agency is paying the temporary employee's wages, the agency would also need to submit a new hire report. This is not something that lies on the shoulders of your business unless you decide to then hire the employee on a part-time or full-time basis.

What if you work with independent contractors?

According to federal law, reporting of independent contractors is not required. However, the State/Employer Contact and Program Information Matrix will show you if your state requires reporting of independent contractors.

Need help with other HR topics?

CSI Accounting & Payroll also offers various HR packages that include guides to job descriptions and employee handbooks to maximize the efficiency of each member in your organization. Did we convince you yet? Click the button below to schedule a free consultation to see if we are a good fit for each other. We hope to hear from you!


CSI Accounting Staff

Written by CSI Accounting Staff

This article was composed by a member of our staff who interviewed our experts to get the facts straight. Any uncited information found here came straight from a knowledgeable accountant or payroll specialist.