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State Plan Page: Requirement to Report Elements to the State Directory of New Hires

AT-11-04

Published: May 3, 2011
Information About:
State/Local Child Support Agencies
Topics:
Employer Responsibilities, New Hire Reporting, Federal Reporting, State Plan
Types:
Policy, Action Transmittals (AT)

ACTION TRANSMITTAL

AT-11-04

DATE: May 03, 2011

ATTACHMENT:  State plan preprint page 3.15

TO: State and Tribal Agencies Administering Child Support Enforcement Plans Under Title IV-D of the Social Security Act and Other Interested Individuals

SUBJECT: Revision of the Title IV-D State Plan Preprint; Submission of State Plan Page to Indicate Compliance with the Federal Requirement for Employers to Report Required Elements to the State Directory of New Hires.

BACKGROUND: 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 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.

(c) REPORTING FORMAT AND METHOD.-Each report required by subsection

(b) shall, to the extent practicable, be made on a W–4 form or, at the option of the employer, an equivalent form, and may be transmitted by 1st class mail, magnetically, or electronically.

CONTENT: The following state plan preprint page and a completed transmittal form (OCSE-21-U4) must be submitted to the appropriate ACF Regional Office, attesting compliance with the requirements set forth on the page:

  • State plan preprint page 3.15, State Directory of New Hires, has been revised and now states, “The State operates a State Directory of New Hires in accordance with §453A.”

ACTION REQUIRED: A state must submit this page by September 31, 2011 unless state legislation is necessary. If additional state legislation is required, in order for the state’s Title IV-D plan to remain in compliance, the state must enact the needed legislation by the first day of the second calendar quarter beginning after the close of the first regular session of the state legislature that begins after the effective date of these amendments. If the state has a 2-year legislative session, each year of the session is considered a separate regular session of the state legislature.

As we indicated in AT-97-04, question and answer #11, “Section 454(28) [of the Social Security Act (the Act)], as added by section 313(a)(3) of PRWORA, requires that the state plan provide for the operation of a new hire directory, but there is no specific state law requirement under section 466. The state would simply need to ensure that its procedures comply with the Federal mandate. Each state must assess for itself whether a law is needed to implement a new hire program (for example, a law to specify the reporting frequency, establish the civil penalty, or designate the particular agency to conduct information comparisons). Under section 453A(b) of the Act, employers are directly required to comply with the reporting requirements, so a state law requiring them to do so may not be necessary.”

REFERENCES: AT-97-12, AT-97-04

EFFECTIVE DATE: June 8, 2011

INQUIRIES TO: ACF/OCSE Regional Program Managers

Sincerely,

Vicki Turetsky
Commissioner
Office of Child Support Enforcement