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.
“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.
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.
Report the following information for each new and returning employee or self-employed/contract employee:
Employer:
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:
Benefits of Electronic Reporting:
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.
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?
Employers have three ways to report online!
Employers can electronically report new hires using the following options:
Employers with only a few reports to submit can manually enter and submit them online.
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.
Service Bureaus and employers with many reports can upload an electronic file.
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.
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.
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.
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.
Use the address where you want income withholding orders sent.
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.
Use the same FEIN when reporting new hires that you use to report your quarterly wage information to the State.
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:
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.
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.
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.
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.
New Hire Reporting helps children and families get the financial and medical support they are legally entitled to by:
When children are financially supported, our communities benefit by:
New hire reporting is more than just another business requirement. By reporting new hires, you help:
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).
Multistate employers may choose to report employees to each state in which they have employees working, following the new hire regulations of each state.
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
Report the following information for each new and returning employee
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.