basics of new hire reporting
Have you recently hired a new employee? Did you know you need to report the new hire with the State of Minnesota? Minnesota Statute 256.998 and the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 42 U.S.C. 653A, require all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire date.
New hire reporting legislation
New hire reporting legislation requires all “employees” be reported – no exceptions. There are three general categories of employees:
The employer must report all employees who reside or work in Minnesota to whom they anticipate paying wages. Employees are reported even if they only work one day and are terminated before filing the new hire report. Domestic employees (such as caregivers, maids, or babysitters) who are subject to federal income tax withholding are employees and must be reported.
Re-hire or Re-called Employees
An employer must report all re-hires or employees who return to work after being laid off, furloughed, granted a leave without pay, or terminated from employment for at leach 60 consecutive days.
The temporary agency is responsible for reporting any employee they hire. Temporary agencies must report the employee once; employees do not need to be re-reported each time they are placed with a new client. If there is a gap in wages (or a break in service), the employee may have to be reported as a re-hire.
There are a few ways to report new hires. However, the New Hire Reporting Center encourages employers to report new hires electronically.
- You can either report new hires using the website.
- Or, you can transmit a data file created by your company’s human resources or payroll software.
- By fax: (800) 672-4473
- By Mail: Minnesota New Hire Reporting Center: PO Box 64212, St. Paul MN 55164
Tip: Electronic reporting eliminates paperwork, increases the accuracy of the reports, allows faster processing, and can save on postage and other costs. The reporting through the website also provides printable confirmations of all new hires you report during a session.
An employer is required to report the following:
- Federal Identification Number
Name of Employee
- Social Security Number
- Date of Hire
- Date of Birth (optional)
New hire reporting is mandated by law in all 50 states
Note: Electronic reporting can also qualify multi-state employers to report new hires directly to one state.
If you have never reported new hires, you should report any new employees you have hired within the last 180 days. Then, continue to report any new hires within 20 days of their hire date.
All the information provided is highly sensitive; therefore, the use of this information falls under strict Federal and State laws. Minnesota’s child support computer system matches new hire information against open child support cases to locate non-custodial parents to establish paternity and child support orders and enforce existing orders. Once these matches are completed, the new hire information is sent to the National Directory of New Hires and is utilized by Child Support Agencies nationwide. Employers are not required to report terminated employees. However, if the terminated employee had an Income Withholding Order (IWO) for child support, the termination should be reported to the agency that issued the order.
States can also use new hire information to help notice and stop fraudulent payments to receivers of unemployment insurance, worker’s compensation, and welfare benefits. The use of this information provides financial support for Minnesota’s deserving families and works towards a decrease in welfare and unemployment insurance costs.
Questions about reporting a new employee?
If you have additional questions or comments about when you should report your new hires, what information to report, or where you send the information, contact us at [email protected].