Topics
New Hire Reporting
New hire reporting is the process by which employers must provide basic information about persons recently hired or rehired. Private employers report employee information to a designated State Directory of New Hires (SDNH) shortly after the date of hire; the SDNH forwards the reports to the National Directory of New Hires (NDNH).
New hire reports are matched against child support records at the state and national levels to locate parents who owe child support. When there is a match, the system provides the information to the appropriate state agency. This is especially helpful when the parent and the child live in different states.
When child support agencies receive a match, they are required to issue an income withholding order within two days.
New Hire Reporting Instructions
Data Elements:
Federal law requires employers to collect and transmit seven data elements. States have the authority to require additional elements beyond the seven. The seven federally required elements are:
Reminder: Use the same Federal Employer Identification Number (FEIN) to report new hires and quarterly wages.
| Data Element | Definition |
|---|---|
| Employer Name | Name associated with the Federal Employer Identification Number (FEIN) |
| Employer Address * | Address associated with the FEIN entity that employs the individual |
| Federal Employer Identification Number (FEIN)** | Nine-digit number assigned to the employer by the Internal Revenue Service |
| Employee Name | Full name associated with that employee's Social Security number (SSN) |
| Employee Address | Current residential address of the new employee |
| Employee SSN | Nine-digit SSN assigned to the employee by the Social Security Administration |
| Date of hire | First date the employee received pay for services |
* It is strongly recommended that employers also report the payroll office address if different from the FEIN address.
** It is critical that employers report both new hires and quarterly wages using the same FEIN. If employers report under different FEINs, it could appear that they are not complying with new hire reporting requirements.
Reporting Medium:
Federal form W-4 collects the required data elements, including the date of hire. While many employers send copies of the W-4 as their official new hire report, electronic submission through the state new hire website is preferred. Employers may also create their own report form or use a state-designed form. Many states allow employers to report data using the following media:
- Fax
- Interactive telephone systems
- Secure email
- State websites
- Magnetic tape or other electronic media
Multistate vs. Single-State Employers:
A single-state employer hires and employs people within one state. Federal law requires that employers report all new hires to the state they do business in and where all their employees work.
Multistate employers that hire and employ people in two or more states can select one of the following new hire reporting options:
- Report newly hired and rehired employees to the states in which they work, following the New Hire Reporting program regulations, requirements, and timeframes of each state; or
- Select one state where employees are working and report all new hires to that state's designated New Hire reporting office. Employers must register with the federal Department of Health and Human Services (HHS)
as described below.
(Note: This option is not available to multistate payroll service companies reporting on behalf of their customers unless those customers are multistate employers and have registered for this option.)
Multistate employers that choose to report to one state must submit new hire reports electronically or magnetically. Multistate employers should contact the state agency to find out what data elements they need to report and the electronic data specifications for that state.
Multistate Employer Registry (MSER):
Multistate employers that report all new hires to a single state must register with HHS to designate the state to receive all new and rehires. The NDNH maintains a list of multistate employers that have opted to use single-state notification, which is available to all states.
When registering with HHS, the multistate employer must provide the following information:
- Federal Employer Identification Number (FEIN);
- Employer's name, address, and telephone number related to the FEIN;
- State selected to report new hires;
- Other states where the company has employees;
- Corporate contact person; and
- If the company is reporting new hires on behalf of subsidiaries operating under different names and FEINs, list the names and FEINs, as well as the states where those subsidiaries have employees working. (Employers may upload an Excel spreadsheet with this information.)
Registration may take place in one of two ways:
- Register through MSER online
,
or - Download the form (PDF) and mail or fax to:
Department of Health and Human Services
Administration for Children and Families
Office of Child Support Enforcement
Multistate Employer Notification
PO Box 509
Randallstown, MD 21133
Fax: (410) 277-9325
For registration assistance, call the Multistate Help Desk at (410) 277-9470, Monday through Friday, 9:00 a.m. - 5:00 p.m. ET.
Please Note: If your company experiences a merger, acquisition, or other change that might affect the reporting requirement in the future, please update your information through the MSER online registration .
New Hire Reporting for Federal Agencies
Federal agencies must report new hires to the NDNH within 20 days of hire. They only report the seven data elements required by federal law; they do not submit any additional data elements required by states.
Most federal agencies submit information directly, or indirectly, through their servicing payroll agency using Connect:Direct or CyberFusion Integration Suite — a highly secure, commercial data transfer software product that allows state and federal agencies to send and receive large amounts of data from mainframe to mainframe. The remaining agencies use Government Services Online, a secured website application. Federal agencies select their submission option by contacting the OCSS data transmission team.