As a small business owner, you want your business to grow. Even if you plan to keep your business to a single location or limit the number of locations where it operates, practically every small business owner wants to grow at least a bit beyond where they started. Most of them have much larger long-term plans. But as your business grows, so do your responsibilities. One of these responsibilities is new hire reporting. Keeping track of each new employee that you hire is an essential piece of compliance in the onboarding process and your larger payroll system. No matter the size of your business, this responsibility can be daunting, especially if you like to focus on serving your customers rather than worrying about compliance.
Why Do You Have to Report New Hires?
Federal law requires employers to report new hires to the U.S. Dept. of Health and Human Services, specifically to the department’s Office of the Administration for Children & Families. New hire reporting is required to match the information with child support records, ensuring that those relying on child support aren’t cut off in the event of a change in place of occupation or employer. These reports also help prevent fraud in other areas such as welfare, workers compensation, and unemployment insurance.
While a given state may have additional information required, the federal DHHS has some basic information that all employers are required to report when hiring someone new or re-hiring a previous employee:
- Employer name
- Employer address
- Federal Employer Identification Number
- Employee name
- Employee address
- Employee Social Security Number
- Date of hiring
If you use a payroll office to handle employee paychecks and other services, you’re advised to report that as well. The U.S. DHHS requires all employers to use the same FEIN when reporting new hires and quarterly wages.
Some employers use their W-4 forms as a new hire report to save time. While this may work for some, it’s not a universal solution. Some states require additional information beyond what’s in a W-4, so that form alone might not suffice.
Some businesses have employees spread out across multiple states. Once this would have been reserved only for larger companies, but with the growing trend of remote working, many more companies (especially those who provide services instead of physical products) have employees spread out across the country.
Employers with staff in multiple states may need to file new hire reports in each employee’s state of residence. However, you also have the option to register with the US DHHS’s Multi-State Employer Registry, which allows you to report your new hires through a single state. Employers who wish to register for the MSER must provide the following information:
- Employer FEIN.
- Employer name.
- Employer address.
- Employer phone number.
- State selected for new hire reporting.
- List of states where the employer has employees.
- Employer’s corporate contact.
- Names and FEINs of any and all subsidiaries if new employees are working at one.
Outsource the Reporting with Payroll Vault
Handling new hire reporting can be done in-house but doing so puts all the burden and responsibility on you to make sure the reports are going to the right agencies in the right states with all the right information. This can be a lot to try and juggle while you’re also dealing with the day-to-day affairs of your business, not to mention getting these new employees oriented and trained. You can ease this burden with the services of Payroll Vault.
We offer more than just payroll services. At Payroll Vault, we offer a suite of payroll and workforce management solutions, including custom reporting and assurance that you’ll be kept in compliance with all state and federal regulations. We provide online and mobile access to manage information required by state and federal laws, not only for new hire reporting, but also for garnishment payments and general ledger reporting.
If Payroll Vault’s services sound like just the kind of solution you want for your reporting and payroll needs, then don’t hesitate to contact Payroll Vault - Western Michigan or find your nearest Payroll Vault location and come in for a consultation.