Frequently Asked Questions

Getting Familiar with the New Hire System

About the Law
1. What is the new hire law?
2. Who must report?
3. Who must be reported?
4. Is anyone exempt from this law?
5. Are labor unions and hiring halls required to report?

Basics of New Hire Reporting
6. Why do we need new hire reporting?
7. What information must I report?
8. How do I report?
9. Where do I report new hires?
10. How often must I report?
11. How will the information be used?
12. I've never reported new hires, what do I do?

Common Employer Questions
13. I am an employer with employees in more than one state. What special considerations, if any, need to be made for this?
14. Is there an easier way to report other than submitting a New Hire Reporting Form?
15. What if I have questions about child support or income withholding?
16. Do I have to report if I do not hire anyone?
17. Are domestic employees (maid, nurse, gardener) required to be reported?
18. I am an employer who has more than one address. Which one should I list?
19. I provide employee information on my Quarterly Wage Reports. Why must I also report the employee as a new hire?
20. Do temporary agencies have to report their new hires for every assignment?
21. Do I need to report an employee who worked for a couple of hours or days and then quit?
22. Do I have to include my FEIN on line 10 of the W-4? The instructions say to include it only if I sent it to the IRS.
23. If I take over a business, do I have to report all of the employees?
24. In addition to reporting new hires, do I need to report terminated employees as well?
25. Can I send an outdated W-4?
26. If an employer receives the Federal Income Withholding Form from a non-governmental entity, what means are available to the employer to verify whether he or she should implement the notice to withhold?
27. What if I still have more questions about new hire reporting?

About the Law

1. What is the new hire law?

District Of Columbia Revised Statute 46-226.06 and the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 42 U.S.C. 653A, requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire date.

SEC. 802. REPORTING OF FIRST DAY OF EARNINGS TO DIRECTORY OF NEW HIRES.
(a) ADDITION OF REQUIREMENT. Section 453A(b)(1)(A) of the Social Security Act (42 U.S.C. 653a(b)(1)(A)) is amended by inserting ''the date services for remuneration were first performed by the employee,'' after ''of the employee,''.
(b) CONFORMING AMENDMENT REGARDING REPORTING FORMAT AND METHOD. Section 453A(c) of the Social Security Act (42 U.S.C. 653a(c)) is amended by inserting '', to the extent practicable,'' after ''Each report required by subsection (b) shall''.
(c) EFFECTIVE DATE.
(1) IN GENERAL. Subject to paragraph (2), the amendments made by this section shall take effect 6 months after the date of the enactment of this Act.
(2) COMPLIANCE TRANSITION PERIOD. If the Secretary of Health and Human Services determines that State legislation (other than legislation appropriating funds) is required in order for a State plan under part D of title IV of the Social Security Act to meet the additional requirements imposed by the amendment made by subsection (a), the plan shall not be regarded as failing to meet such requirements before 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 such amendment. If the State has a 2- year legislative session, each year of the session is deemed to be a separate regular session of the State legislature.
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2. Who must report?

All employers and/or labor organizations in the District of Columbia.

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3. Who must be reported?

Employers are required to report the following employees:

• New employees: Employers must report all employees who reside or work in the District of Columbia to whom they anticipate paying earnings. Employees must be reported even if they only work one day, and are terminated prior to the employer fulfilling the new hire reporting requirement.
• Re-hires or Re-called employees: Employers must report all re-hires, or employees who return to work after being laid off, furloughed, separated, granted a leave without pay, or terminated from employment for at least 60 consecutive days.
• Temporary employees: Temporary agencies are responsible for reporting any employee who they hire to report for an assignment. Employees only need to be reported once, and do not need to be re-reported each time they are placed with a new client. However, they do need to be reported as a re-hire if the worker has a break in service, or gap in wages from your company for at least 60 consecutive days.

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4. Is anyone exempt from this law?

Only Federal or District agency employees performing intelligence or counterintelligence functions do not have to be reported if the agency head has determined reporting could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.

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5. Are labor unions and hiring halls required to report?

Labor unions and hiring halls must report their own employees; that is, individuals who work directly for the labor union or hiring hall. If the labor union or hiring hall only refers individuals for employment, it does not need to file new hire reports for these individuals. However, if a labor organization actually pays the individuals whom it refers, as opposed to having them paid by the person or entity to whom they have been referred, the labor organization would be considered the "employer" and therefore required to submit new hire reports according to the mandated requirements.

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Basics of New Hire Reporting

6. Why do we need new hire reporting?

New hire reporting accelerates the child support income withholding order process, expedites collection of child support from parents who frequently change jobs, and promptly locates alleged non-custodial parents to help establish paternity and child support orders. Because of this, new hire reporting is essential to helping children receive the support they deserve. Employers are a key partner in ensuring the financial stability of many children and families and should take pride in their integral role.

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7. What information must I report?

In accordance with Federal legislation, the District of Columbia asks for the following information:

• Employer's Federal Employer Identification Number (FEIN) - If you have more than one FEIN, please make certain you use the same FEIN you use to report your quarterly wage information when reporting new hires.
• Employer's Name
• Employer's Address
• Employee's Name (First, Middle, Last)
• Employee's Address
• Employee's Social Security Number (SSN)
• Date the employee first performed services for remuneration

Additional information may be required if reporting electronically. Learn more about electronic reporting specifications.

In addition, you must indicate the date the employee first performed services for remuneration in any available blank space on the W-4 form. Back to Top

8. How do I report?

There are a variety of simple and easy ways to report new hires, including online reporting, electronic reporting and by mail or fax. Get more information on the convenient reporting options available.

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9. Where do I report new hires?

Electronic Reports - Utilizing our web site's online reporting feature is a very popular option for employers. This feature provides printable confirmation of reports received, and is conveniently available 24 hours a day, 7 days a week.

Employers can send new hire data files in a variety of ways, including transferring files through the Web site or through internet connection using File Transfer Protocol (FTP). Employers can also mail reports directly to our Directory of New Hires on a diskette. Learn more about electronic reporting.

Non-Electronic Reports - Paper new hire reports may either be faxed or mailed to our Directory of New Hires.

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10. How often must I report?

Employers are required to submit a report within 20 days of a new employee's hire date. Employers who submit reports magnetically or electronically are to submit the reports in two monthly transmissions not more than 16 days apart.

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11. How will the information be used?

Federal and State laws outline strict guidelines for the use of new hire reporting information. The District of Columbia's child support computer system matches new hire information against open child support cases in order to locate non-custodial parents to establish paternity and child support orders, as well as enforce existing orders. Once these matches are completed, the new hire information is sent to the National Directory of New Hires and is utilized by Child Support Agencies nationwide.

New hire information can also be used by states to help detect and prevent fraudulent payments to recipients of unemployment insurance, workers compensation, and welfare benefits.

The use of this information provides financial support for The District of Columbia's deserving families and works towards a reduction in welfare and unemployment insurance costs.

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12. I've never reported new hires, what do I do?

To begin, report any new employees you have hired within the last 180 days. Then, continue to report any new employees you hire within 20 days of their hire date.

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Common Employer Questions

13. I am an employer with employees in more than one state. What special considerations, if any, need to be made for this?

New hire reporting is mandated by law in all 50 states so one of the main goals of new hire reporting legislation is to make it as easy as possible for employers to comply. For those employers who have employees in more than one state, we have two convenient options for reporting. Click here for more information about Multistate reporting. Get more information about Multistate reporting.

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14. Is there an easier way to report other than submitting a New Hire Reporting Form?

We highly recommend reporting your new hires electronically, as there are multiple options for doing so. You can either report new hires using our convenient Web site, or you can transmit a data file created by your company's human resources or payroll software. Electronic reporting eliminates paperwork, increases the accuracy of the reports, allows faster processing, and can save on postage and other costs. Additionally, our Web site also provides printable confirmation of all new hires you report during a session. Electronic reporting can also qualify Multistate employers to report new hires directly to one state.

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15. What if I have questions about child support or income withholding?

The Directory of New Hires does not have access to specific child support information and does not have the ability to answer questions related to child support.

Check out our Employer Resources page to find information on local, state, and federal child support agencies.

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16. Do I have to report if I do not hire anyone?

No.

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17. Are domestic employees (maid, nurse, gardener) required to be reported?

New hire reporting legislation requires all "employees" be reported. Therefore, an individual who is an employee for purposes of federal income tax withholding from wages, is also an employee for new hire reporting purposes. If you need to determine whether you should be paying federal income taxes for your employees, please contact the Internal Revenue Service at (800) 829-1040 or visit them at https://www.irs.gov.

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18. I am an employer who has more than one address. Which one should I list?

You should list the address where you want income withholding orders sent. A street address is preferred, as long as mail can be sent there.

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19. 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 report new hires immediately, there is a much better chance of locating the individual while still employed, and the required child support action can be taken at once. Furthermore, fraudulent unemployment insurance, workers compensation, and welfare benefit payments can be detected quickly.

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20. Do temporary agencies have to report their new hires for every assignment?

Temporary agencies are mandated to report their workers who sign a W-4 form and report to an assignment. Workers only need to be reported once, and they do not need to be reported each time they are placed with a new client. If the worker has a break in service from your agency and a new W-4 form is required, then a new hire report would be necessary.

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21. Do I need to report an employee who worked for a couple of hours or days and then quit?

As long as an employee filled out a W-4 form, even if they only worked for a few hours, that employee must be reported. Although that employee is no longer with your company, useful information such as home address and work history can be obtained from their new hire report.

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22. Do I have to include my FEIN on line 10 of the W-4? The instructions say to include it only if I sent it to the IRS.

Yes, if you are sending in your report by W-4, you must include the employer name, address, and Federal Employer Identification Number (FEIN) in blocks 8 and 10 of the W-4 form. When reporting new hires, if you have more than one FEIN, please make sure you use the same FEIN used to report your quarterly wage information.

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23. If I take over a business, do I have to report all of the employees?

If these employees have previously been reported then NO, you are not required to report them again. However, employers are required to report any new employee who is hired after your take over date. If you are unsure whether employees have already been reported, we suggest you report any employee hired within the last 180 days.

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24. In addition to reporting new hires, do I need to report terminated employees as well?

No. Only new hires and re-hires are required to be reported to the Directory of New Hires. However, if the terminated employee had an Income Withholding Order for child support, the termination should be reported to the agency that issued the order.

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25. Can I send an outdated W-4?

Yes, but if you need new W-4 forms, please contact the Internal Revenue Service.

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26. If an employer receives the Federal Income Withholding Form from a non-governmental entity, what means are available to the employer to verify whether he or she should implement the notice to withhold?

Upon receipt of a Federal Income Withholding Form from a non-governmental entity, the employer may request a copy of the underlying withholding order, or the state law that authorizes another legal process to implement withholding, as verification that income withholding has been ordered in accordance with state law.

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27. What if I still have more questions about new hire reporting?

Do not hesitate to call the DC Directory of New Hires toll-free at (877) 846-9523 Ext. 300 with any questions regarding the new hire reporting process. Our toll-free number operates 24 hours a day, seven days a week. There is also help desk staff available for your assistance Monday through Friday, 8:00am to 5:00pm Eastern standard Time.

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