Employers Required to Report Date of Hire
On December 8, 2010, President Obama signed the Claims Resolution Act into law (Public Law 111-291), which resolves several claims against the government and extends the Temporary Assistance for Needy Families (TANF) and related programs. The law also makes reforms to the Unemployment Insurance (UI) program, including the new requirement that employers report to the State Directory of New Hires (SDNH) the date that an employee first performs services for pay. This is an anti-fraud measure aimed at reducing the number of overpayments to individuals receiving UI benefits. The new SDNH reporting requirement goes into effect June 8, 2011.
The law amends section 453A of the Social Security Act, effective June 8, 2011, as follows:
(b) EMPLOYER INFORMATION.-
(1) REPORTING REQUIREMENT.-
(A) IN GENERAL.-Except as provided in subparagraphs (B) and (C), each employer shall furnish to the Directory of New Hires of the State in which a newly hired employee works, a report that contains the name, address, and Social Security number of the employee, the date services for remuneration were first performed by the employee, and the name and address of, and identifying number assigned under section 6109 of the Internal Revenue Code of 1986 to, the employer.