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New Hire Reporting: State and Federal Requirements & FAQs
What is New Hire Reporting?
What is New Hire Reporting?
Why is New Hire Reporting required?
Who is required to be reported?
How are New Hire Reports used?
What if they provide a Federal Tax ID instead of a SSN?
What are my options for Electronic Reporting?
Option #1
Option #2
Option #3
Frequently Asked Questions
Is anyone exempt from this law?
I've never reported new hires, what do I do?
Do Independent Contractors (1099's) have to be reported?
Are labor unions and hiring halls required to report?
I am an employer with employees in more than one state. Do I have to report in each state?
I am an employer who has more than one address. Which one should I list?
What is the easiest way to report?
I am an employer who has more than FEIN. Which one should I list?
As an employer, is there somewhere or someone that we can contact for help with our specific questions?
I provide employee information on my Quarterly Wage Reports. Why must I also report the employee as a new hire?
Do I need to report an employee who worked for a couple of hours or days and then quit?
If I take over a business, do I have to report all of the employees?
In addition to reporting new hires, do I need to report terminated employees as well?
Benefits of New Hire Reporting
Benefits Children and Families
Benefits Our Community
Benefits to Employers
Benefits Employees
What is Multi-State Reporting?
Option #1
Option #2
What is New Hire Reporting?
What is New Hire Reporting?
The State Directory of New Hires (SDNH) is a centralized, confidential, and secure repository responsible for receiving new hire data reported by employers in the State of Colorado. Federal law (42 USC 653A(b)(1)(A)) requires employers to furnish this data to the SDNH of the state in which a newly hired employee works.
This reporting must take place within 20 calendar days after the date of hire or by the first regularly scheduled payroll following the date of hire, if such payroll is after the expiration of the 20-day period.
Electronic reporting requires two monthly transmissions, no fewer than 12 and no more than 16 days apart.
“Employer” has the same definition as for federal income tax purposes. Employers required to provide employees with W-2 Forms must also comply with new hire reporting requirements.
Why is new hire reporting required?
In 1996, Congress enacted a law called the "Personal Responsibility and Work Opportunity Reconciliation Act," or PRWORA, as part of Welfare Reform. This legislation created the requirement for employers in all 50 states to report their new hires and re-hires to a state directory within 20 days. New hire reporting speeds up the child support income withholding order process, helping children receive the support they deserve. Employers serve as key partners in ensuring financial stability for many children and families and should take pride in their role. Federal law (42 USC 653A(b)(1)(A)) requires employers to report all new hires.
Who is required to be reported?
A newly-hired employee means a natural person who is employed by an employer in this state for compensation, which employer is required to report the compensation to the Federal Internal Revenue Service. "Employee" includes a self-employed or contracted employee (independent contractor) for whom the employer is required to report compensation to the Federal Internal Revenue Service. An independent contractor should be reported as a new hire if they provided their Social Security Number for tax purposes. If they provided a Federal tax ID (FEIN), you do not need to report these employees as new hires. A new employee is an individual not previously employed by you.
A rehired employee is an individual who was previously employed by you but separated from employment for at least 60 consecutive days.
Report the following information for each new and returning employee or self-employed/contract employee:
Full name
Social Security Number (don’t report if they are an independent contractor and provided a Federal tax ID instead of an SSN)
Address
Date of Hire or Contract Start Date
Check the provided box or complete the field to indicate if they are an Independent Contractor
Employer:
Federal identification number (FEIN)
Employer name
Payroll address
If you have more than one FEIN, please make certain you use the same FEIN when reporting new hires that you use to report your quarterly wage information to the State.
How and Where to Report:
Report Online! Enter or upload your reports through this Portal.
Contact us to set up automated Secure File Transfer process using an sFTP client software.
If you still want to continue reporting by mail or fax, send all new hire reports to:
Fax to:
(303)-297-2595
US Mail:
Colorado State Directory of New Hires
PO BOX 13089
Sacramento, CA 95813-3089
Diskette, magnetic media or cartridge may be submitted with approval. Please email
CDHS_FSREmployerServices@state.co.us
for requirements.
Notice: As of July 1, 2023, the address listed above was changed. Please begin sending any new hire mail to this address immediately. Current mail received is being forwarded to this address, but the forward will be stopped by the end of 2023. If you are using the PDF new hire form from this Portal, please get the
new version
with the new address.
Benefits of Electronic Reporting:
Saves on ink, paper, processing time and postage
Reduces the likelihood of errors
Helps to avoid rejected records
Helps children and families get the child support they need much faster
How are New Hire reports used?
The Colorado Child Support office matches new hire information against open child support cases to locate parents, establish medical, paternity and child support orders, and enforce existing orders. Once these matches are done, the new hire information is sent to the National Directory of New Hires and is utilized by child support agencies nationwide. Child support is typically collected by withholding income from the paying parent’s paycheck. When a child support order is created, the county child support office will verify the paying parent’s employment through the State Directory of New Hires.
What if they provide a Federal Tax ID instead of a SSN?
My self-employed/contract employee (independent contractor) provided their Federal tax ID (FEIN) instead of a Social Security Number. Should I still report them as a new hire?
Employees should only be reported as new hires if they provide a Social Security Number for tax purposes. You do not need to report them if they provided a Federal tax ID (FEIN).
What are my options for Electronic Reporting?
Employers have three ways to report online!
Employers can electronically report new hires using the following options:
Option #1 Enter Online:
Employers with only a few reports to submit can manually enter and submit them online.
Option #2 Secure File Transfer Protocol (SFTP):
Only available for registered employers and Service Bureaus who are registered to securely transfer files to our server. Give us a call at 800-696-1468 Option 6 to set up SFTP reporting.
Option #3 File Upload:
Service Bureaus and employers with many reports can upload an electronic file.
Frequently Asked Questions
Is anyone exempt from this law?
Every employer must report every employee, including temporary, seasonal, and self-employed/contract employees working under their SSNs. Only Tribal enterprises operating on Federally-recognized Tribal land are exempt from new hire reporting, due to their sovereignty under Federal law.
I've never reported new hires, what do I do?
Begin by reporting any new employees you have hired within the last 365 days. Continue by reporting any new hires you have within 20 days of their hire date. Employers must report any new hire within 20 calendar days of the hire. If the employee’s first scheduled payroll follows the 20-day period, the report can be submitted then. Any new hires submitted electronically must be reported twice per month, no fewer than 12 and no more than 16 days apart.
Do Independent Contractors (1099's) have to be reported?
Yes. Effective July 2021, Colorado House Bill 21-1220 requires employers to include all Independent Contractors (self-employed or contract employees) in their new hire reports and file transmissions. All employers are required to report all employees, including any independent contractors, to the Colorado State Directory of New Hires. An independent contractor should be reported as a new hire if they provided their Social Security Number for tax purposes. If they provided a Federal tax ID (FEIN), you do not need to report these employees as new hires.
Report independent contractors as you would any employee, providing:
Full name
Social Security number
Address
Contract start date or Date of Hire
Complete the specified field to indicate Yes they are an Independent Contractor, leave blank for No
Are labor unions and hiring halls required to report?
If the labor union or hiring hall simply refers individuals for employment, it does not need to file new hire reports for these actions. If a labor organization actually pays the individuals whom it refers, the labor organization would be considered the "employer" and subject to the new hire reporting requirements.
I am an employer with employees in more than one state. Do I have to report in each state?
New hire reporting is required in all 50 states. For those employers who do business in Colorado who also have employees in more than one state, we recommend registering to report to Colorado as a multistate employer. Employers can register for multistate reporting with the Federal Office of Child Support Enforcement:
acf.hhs.gov
.
I am an employer who has more than one address. Which one should I list?
Use the address where you want income withholding orders sent.
What is the easiest way to report?
Reporting online is by far the most efficient way to report new hires. Enter or upload your reports on our Portal or transmit a file via sFTP. Electronic reporting will eliminate paperwork, increase the accuracy of the reports, allows faster processing, and can save postage and other costs.
I am an employer who has more than FEIN. Which one should I list?
Use the same FEIN when reporting new hires that you use to report your quarterly wage information to the State.
As an employer, is there somewhere or someone that we can contact for help with our specific questions?
For assistance with and questions regarding New Hire Reporting:
Call us for assistance Monday – Friday, 8 am – 5 pm MST at 800-696-1468, Option 6
Contact us via email at
CDHS_FSREmployerServices@state.co.us
For assistance with Child Support, payments, and more:
Customer service representatives at the Family Support Registry
FSR Employer Outreach Department
can assist you with payment processing, Monday through Friday from 8:00 a.m. to 5:00 p.m. Mountain Time.
The
FSR Employer Outreach Department
provides the following service and support:
Training and support on Electronic Funds Transfer (EFT) payment remittance method and File Transfer Protocol (FTP)
Help with employer payment remittance via diskette
An Onsite trainer / liaison to answer your questions and concerns
I provide employee information on my Quarterly Wage Reports. Why must I also report the employee as a new hire?
New hire information from the Quarterly Wage Reports becomes available two to six months after the date of hire. When you immediately report new hires, you help children get the support they need faster.
Do I need to report an employee who worked for a couple of hours or days and then quit?
If you paid any wages out to an employee, they must be reported as a new hire. Although that employee is no longer with your company, useful information is obtainable, such as home address and work history.
If I take over a business, do I have to report all of the employees?
No, if all employees were reported and if you, as the new employer, continue to honor any Income Withholding Notices that are in effect. If you will not honor the previous Income Withholding Notices, you must report all employees as new hires.
In addition to reporting new hires, do I need to report terminated employees as well?
Only report terminations if the terminated employee had an Income Withholding Notice for child support. Report the termination to the agency that issued the Order.
Benefits of New Hire Reporting
Benefits Children and Families
New Hire Reporting helps children and families get the financial and medical support they are legally entitled to by:
Quickly locating parents to establish paternity & child support orders
Speeding up the child support withholding process
Expediting collections from parents who change jobs frequently
Benefits Our Community
When children are financially supported, our communities benefit by:
Protecting children and families from the effects of poverty
Allowing children to lead more fulfilling lives with more opportunities to excel
Protecting the future of our community by helping children thrive and succeed
Helping detect fraud, decreasing public assistance costs and saving taxpayer money
Benefits to Employers
New hire reporting is more than just another business requirement. By reporting new hires, you help:
Create a strong community in which your business can thrive
Prevent unemployment and workers compensation fraud, keeping employer taxes and premiums low
Demonstrate you care about the well-being of the employee's family by ensuring they are supported as required by law; in turn employees may be more dedicated to the well-being of the company
Benefits Employees
Prevents discrimination of employees with child support orders by requiring that ALL employees be reported
Allows withholding orders to continue without interruption, preventing bench warrants, late fees and other penalties from being assessed on an employee with a child support order
Shows that the employer is dedicated to legal process, and that employees can trust the employer to provide other required benefits such as workers compensation, unemployment, and medical insurance
Prompt employer compliance helps employees financially support their children
Multi-State Reporting
If you are an employer with employees in more than one state, you are a multistate employer (MSE). MSEs may choose to report to a single state by registering as a MSE with the Federal Office of Child Support Enforcement (OCSE).
Option #1
Multistate employers may choose to report employees to each state in which they have employees working, following the new hire regulations of each state.
Option #2
Or, multistate employers may choose to report to a single state by registering as a multistate employer with OCSE - we recommend Colorado. The employer must choose a state in which they are doing business.
Employers choosing this method can save time and money by submitting all their new hire reports to their chosen state.
Note: MSE employers may choose only one method by which to report.
If you choose Option 2 for reporting your new hires, you must notify the Federal Office of Child Support Enforcement which state you have designated to receive all of your new hire information.
Visit the Federal Office of Child Support Enforcement website to register for multi-state reporting:
https://www.acf.hhs.gov/css/resource/multistate-employer-registration-form-instructions
Be sure to immediately update any changes in your payroll contact information with other states, and check the accuracy of your registration with OCSE annually.
After registering as a multistate employer, reports for all employees in all states may be sent via electronic transfer twice a month, between 12-16 days apart.
Benefits of Electronic Reporting
Saves on ink, paper, processing time and postage
Reduces the likelihood of errors
Helps to avoid rejected records
Helps children and families get the child support they need much faster
Report the following information for each new and returning employee
Employee Social Security Number
Employee full name and address
Date of hire (first day of work)
The State in which the employee works
If you have more than one FEIN, make certain you use the same FEIN when reporting new hires, that you use to report your quarterly wage information to the State. Questions? Contact us –We’re here to help.
Colorado New Hires
Operation Center
PO Box 13089
Sacramento, CA 95813-3089
Colorado Child Support
Phone
(303) 297-2849
FAX
(303) 297-2595
Email
CDHS_FSREmployerServices@state.co.us
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