Federal law requires all employers to report information on all new hired employees to their state's Health and Human Services Department. The information is mainly used to help prevent unemployment compensation fraud and to locate parents who owe child support. The information employers are required to submit should contain the new employee's name, address, and Social Security number. Employers must also include their company's name, address, and federal employer identification number. A copy of an employee's W-4 (W-four) form or an equivalent document can be used to report this information. Keep in mind that states may request additional information. New-hire reports must be sent by first class mail, fax, or e-mail to the appropriate state agency within 20 calendar days of the date of hire, although some states may require shorter deadlines. If employers have employees in more than one state, they must report in each state. States are required to keep a database of every child support order entered in the state and to match new hire forms against those orders. If there's a match, the state will send the employer a withholding order that requires a portion of the new employee's income to be withheld to satisfy child support payments. All employers who fail to report new-hire information in a timely manner will be subject to a penalty of up to $25 (twenty-five dollars) per instance, and up to $500 (five hundred dollars) if they're found guilty of falsifying reports on new employees.
