As stated by The Personal Responsibility and Work Opportunity Reconciliation Act of 1966, an employer must report newly hired and re-hired employees to a state directory within 20 days of the hire or rehire date. As an employer, you play a critical role in this important program. States match new-hire reports against their child support records to locate parents, establish a child support order, or enforce an existing order.
In addition to matching within a state, states transmit the reports to the National Directory of New Hires (NDNH), so the information can be used on a larger scale. State agencies operating employment security (unemployment insurance) and workers’ compensation programs have access to their state’s new hire information to detect and prevent erroneous benefit payments.
Further, each state can conduct matches between its own new hire database and other state programs to prevent unlawful or erroneous receipt of public assistance, including welfare, food stamps and Medicaid payments.
There is little to no cost impact on your business operations to carry this out. To ease the process, states are working closely with their employers, offering them a variety of reporting methods. A potential benefit to employers is the reduction and prevention of fraudulent unemployment and workers’ compensation payments.
Timely receipt of new-hire data allows each state to cross-match this data against its active workers’ compensation and unemployment insurance claimant files to either stop or recover erroneous payments. States have saved millions of dollars of erroneous unemployment insurance payments because of these cross-matches.
For those seeking more information about how to report new hires in your state, check out this link.
https://www.sba.gov/content/new-hire-reporting-your-state
The Department of Health & Human Services Office of Child Support Enforcement maintains a map with links to state agencies where employers can learn more about reporting new hires and the specific requirements they must meet.
- Don’t Let Nasty Weather Blow Your Office Off Course - July 29, 2020
- Giving = Learning|Do You Work With A Helper? - January 31, 2018
- Employment Application – How does yours stack up? - January 24, 2018
