Back to top

NEW HIRE REPORTING

The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 was signed into law on August 22, 1996. This legislation provides for a much strengthened Child Support Enforcement Program. The Child Support Program benefits children and families by locating noncustodial parents, establishing paternity when necessary, and establishing and enforcing child support orders.

One key provision of the PRWORA legislation of importance to employers is that all States have a program providing information about the newly hired. This new hire reporting program provides timely information so that child support can be more effectively enforced. Employers are required to report certain information on their newly hired employees to a designated State agency. This Act requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire or rehire date.

States have the option of imposing civil monetary penalties for noncompliance. Federal law mandates that if a state chooses to impose a penalty on employers for failure to report, the fine may not exceed $25 per newly hired employee. If there is a conspiracy between the employer and employee not to report, that penalty may not exceed $500 per newly hired employee. States may also impose non-monetary civil penalties under state law for noncompliance.

States will match new hire reports against child support records to locate parents, establish an order, or enforce an existing order. State agencies operating Employment Security and Workers' Compensation Programs will also have access to the new-hire information to detect and prevent erroneous benefit payments.

Rothrock Payroll Services accomplishes reporting of your new hires and re-hires according to each states guidelines; relieving you and your business from the reporting burden and potential penalties for failing to meet these rules.