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 and 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. Continue reading