FAQ

In August 1996, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) was signed into law, requiring all states to legislate new hire requirements by October 1, 1997. This federal regulation strengthens the Child Support Enforcement Program by locating non-custodial parents, in order to establish and enforce child support orders. It also helps detect and prevent fraud in unemployment, workers compensation, and other state assistance programs. While the law has significant social value, it creates another administrative burden for employers, making you responsible for reporting basic identification information on all of your newly-hired employees.

ADP offers a simple and affordable way to help you comply with new hire reporting laws. We take responsibility for accurately completing the required information for all your newly-hired employees (regardless of the states in which they work), helping you reduce the risk of fines for non-compliance and giving you more time to focus on other important issues.

All states are required to develop a new hire directory that meets federal requirements. ADP reports to all 50 states, as well as the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.

According to the minimum standards required by federal legislation, your new hire report must contain the name, address, and social security number of the employee, along with your company name, address, and Federal Employer Identification Number (FEIN). However, you should check with the agencies in the states where you report new hires, since they may require additional information. Click here for more new hire reporting information, including NHR requirements by state.

If you are a ADP NHR client, we will use the data you input for your payroll to automatically report the correct information to the appropriate state agencies.

If you report new hires yourself, you may use Form W-4, an optional state form, or your own equivalent form. If you use ADP's New Hire Reporting service, ADP will ensure that your new hire data is submitted in a format that conforms to your state's guidelines.

Penalties vary by state. If you are non-compliant, federal law allows states to charge you with a penalty of $25 for each employee that is not reported. A $500 penalty may apply if it can be determined that the failure to file, or the submission of false or incomplete reports, is the result of a conspiracy between you and your new hire. Some states may also impose non-monetary civil penalties.

Click here for more new hire reporting information, including which states assess penalties.

Federal legislation requires that new hires be reported within 20 days of the hire date. It also states that if you use electronic or magnetic media, you must submit new hire data in two monthly transmissions not less than 12 or more than 16 days apart. However, your state agency may have more stringent requirements. If your company does its own reporting, click here for more new hire reporting information, including a list of state reporting time limits.

If you are an ADP NHR client, ADP will manage the deadlines for you. To ensure reporting in the shortest time frame, you should always input new employee data with the first payroll following the start date.

Any employees who are required to complete a new W-4 form must also be reported as new hires. You do not need to report returning employees who were never formally terminated, or who were never removed from your payroll records.Any employees who are required to complete a new W-4 form must also be reported as new hires.

Yes. The purpose of reporting is to locate non-custodial parents. So regardless of the length of employment, you must submit a new hire report whenever an employer/employee relationship is created and wages are earned.

Employers are required to report independent contractors in specific states.