Compliance & Penalties
Statute 23-722.01 and the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 42 U.S.C. 653a require that all employers report newly hired, and re-hired employees to a state directory within 20 days of their hire date
Becoming mandatory in October, 1998, new hire reporting is now required by law in all 50 states. Pursuant to federal law, states even have the option of imposing civil monetary penalties on employers who fail to report new hires. The fine can be up to $25 per newly hired employee, and can be increased up to $500 if employer and employee conspire to avoid reporting.
The State of Arizona works with employers to help ensure that all new hires are reported as required, as the Federal Office of Child Support Enforcement (OCSE) provides states with a quarterly report containing information on employers who may not have properly done so.
Using the quarterly report, our New Hire Reporting Center may mail notices to employers who appear to be non-compliant in reporting their new hires. To help employers avoid future notices, it provides information on legal requirements, as well information on how to comply with new hire reporting laws.
Using a different FEIN to report your new hires and your quarterly wage information may cause you to appear non-compliant with reporting protocol. If you have more than one FEIN, please be sure to use the same FEIN you use to report your quarterly wage information when reporting new hires. If you receive a non-compliance notice from our office and you believe you may be using multiple FEINs, please contact us.
New hire reporting is a valuable tool that contributes to the support of many families, and assists with preventing fraudulent unemployment payments and/or welfare benefit payments. To learn more about the benefits of new hire reporting, click here.
If you have received a notice from the New Hire Reporting Center that referenced a lack of compliance, or if you have additional questions about complying with the new hire reporting law, please contact us.
CLAIMS RESOLUTION ACT OF 2010, 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.- 42 USC 653a note. 26 USC 6402 note. 26 USC 6402. VerDate Nov 24 2008 15:14 Dec 14, 2010 Jkt 099139 PO 00291 Frm 00095 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL291.111 APPS06 PsN: PUBL291 dkrause on GSDDPC29PROD with PUBLIC LAWS 124 STAT. 3158 PUBLIC LAW 111-291, DEC. 8, 2010
(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.
On October 21, 2011, President Obama signed the Trade Adjustment Assistance Extension Act of 2011 (Public Law 112-40), which amends section 453A(a)(2) of the Social Security Act. The law amends section 453A of the Social Security Act, effective April 21, 2012 as follows: Definition of Newly Hired Employee-Section 453A(a)(2) of the Social Security Act (42 U.S.C. 653a(a)(2)) is amended by adding at the end the following: NEWLY HIRED EMPLOYEE - The term "newly hired employee" means an employee who has not previously been employed by the employer; or (ii) was previously employed by the employer but has been separated from such prior employment for at least 60 consecutive days.