New Hire Reporting May Be Required for Your Independent Contractors

Most employers are aware of the federal law requiring you to report all of your newly hired employees (and rehired employees) to your state within a specified time period, but were you aware that you may also be required to report new independent contractors that begin working for you to your state as well?

New hire reporting is mandated at the federal level by The Personal Responsibility apaperclip-178126_1920nd Work Opportunity Reconciliation Act of 1996 (PRWORA), but specific details as to the requirements of the new hire reporting vary from state to state.  States determine how the new hire reporting information should be submitted, in what format, in what amount of time (maximum of 20 days from date of hire per federal law), and who should be reported. The “who” includes independent contractors for many states such as California.

In general, you must provide basic information about your new employees (or independent contractors when required) such as their name, address, social security number, and their first day of work with your company. This information is used by your state to enforce laws and benefits such as child support income withholding orders.

To check the new hire reporting laws in your state, the Office of Child Support Enforcement Employer Services Team has provided a helpful matrix that gives details for each state. To view that matrix, click here.