Hiring a new employee can be a blessing and a curse. On one hand, you're excited about the extra help - and on the other hand, you not only need to go through training, but you also need to deal with new hire reporting. There's not a large time frame to get it all done! Remember - you also need to report rehires.
At CSI Accounting & Payroll, we've worked with small businesses for more than 50 years. We know a thing or two about new hire reporting! Often, clients who don't have an HR department will ask us these questions about new hire reporting:
- Will you do my new hire reporting for me?
- Which forms do I need for new hires and rehires?
- When do I need to report a new hire?
- What data do I need to report?
- What if I employ workers in more than one state?
- What if I have temporary employees?
- What if I work with independent contractors?
Learn about CSI's policy on new hire reporting.
If you're interested in working with CSI for payroll services, you may be wondering what our process is with new hire (and rehire) reporting.
Will CSI handle my new hire reporting for me?
Yes! Our team at CSI is happy to handle the details for you. It ensures the best possible chance to avoid errors and get everything properly submitted. There is an additional fee associated with this.
You may try to handle most of the details yourself, but as your payroll provider, we still have data to plug into our system in the end. Because of this, we will charge the fee regardless - so why not kick back and let us handle it all for you?
We provide new hire forms in the Client Center on our website.
Which forms do I need for hires and rehires?
Here's our client center! If you scroll through our icons, you'll see the following new hire/rehire information and paperwork:
-
Form W-4
-
Form W-9
-
Form I-9
Even though we are located in Minnesota, we accept clients who are located in the United States. For Minnesota clients, we also offer:
-
W-4MN form
-
Minnesota New Hire Reporting Form
-
Minnesota Employee Notice
If you need different forms for any reason (for example, a client is located in a different state), we are happy to help you find the correct paperwork.
SHRM provides a toolkit for new hire reporting compliance.
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), new hire reporting can be done by the business owner - with the right knowledge, of course. Learn about CSI's HR service here.
Otherwise, 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. The same applies to rehires, which is any person who is re-employed and has been off your payroll for more than 60 days. 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 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:
-
Fax: (410) 277-9325
-
Email: MSEdb@acf.hhs.gov
-
Mail: U.S. Department of Health and Human Services
Multistate Employer Registration
P. O. Box 509
Randallstown, MD 21133
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.
Get help with other HR topics - and your payroll.
As a small business with employees but no HR specialist, you face risks with almost every move you make. Even the smallest thing can leave you out of compliance or facing a lawsuit, and that's why you're doing your business right by researching the proper procedure for new hire and rehire reporting.
Now that you know how to handle your reporting (and that CSI will do it for you if you're a client), you may want to look into payroll and HR services. If so, why not consider CSI? There are lots of differences between small firms and the big guys, after all. We also offer various HR packages that include guides to job descriptions and employee handbooks to maximize the efficiency of each member in your organization.
If you're interested in seeing if we can be a good match, click the button below to schedule a free consultation:
Not ready to talk? That's okay! First, you should learn more about the cost of our payroll service:
