New Hires FAQs
New hire reports should be sent to the State Directory of New Hires (SDNH) in the state where the employee works or, in the case of a multistate employer, to the state which the employer has designated. Federal law identifies three methods for submitting new hire information: first class mail, magnetic tapes, or electronically. For employers’ convenience, many states offer additional options such as fax and online reporting. Federal employers must report new hire data directly to the National Directory of New Hires (NDNH). To learn each state’s method of reporting, see the State New Hire Reporting Contacts and Program Information matrix.
States are given the option of establishing reporting time frames that are shorter than 20 days. Private employers must adhere to the reporting time frame of the state to which they report. An employer reporting electronically or by magnetic medium must submit two transmissions each month (if necessary, based on the volume of hiring) not less than 12 days nor more than 16 days apart.
State-specific information is available on the State New Hire Reporting Contacts and Program Information matrix.
Correct SSN data is also important because new hire records are used for cross-matching with outstanding child support cases and with unemployment insurance claims. These cross-matches are performed using the SSN as a key field. It is critical that you use only a valid SSN. Do not submit an Individual Taxpayer Identification Number (ITIN) or Resident Alien (“green card”) number in place of the SSN.
If a payroll service provider reports new hires to one state on behalf of a multistate employer, the provider must confirm that the employer is registered with the Department of Health and Human Services (HHS) to report to one state and that the employer has employees working in the state to which the payroll service provider will be reporting. If the employer does not have employees working in the state in which the payroll service provider reports for other customers, then the payroll service provider must report these employees to the respective states in which they work or must register the employer on the HHS Multistate Employer Registry to report to a state where the employer does have employees.
If your agency is paying wages to the individual, you must submit a new hire report. The individual needs to be reported only once, except when there is a break in service from your agency and the individual returns from prior employment after separating for at least 60 consecutive days. Some states may have shorter time frames enacted by their legislators.
- Visit the website to obtain and complete Form SS-5
- Call 800-772-1213 to obtain the Form SS-5
- Visit a local SSA office
These services are free. Ask the employee to return with his or her new or duplicate Social Security card so that you can update your records and report the SSN to your states new hire reporting agency.
- The State Directory of New Hires (SDNH) establishes and publishes an Internet e-mail address that allows an employer to submit data either by creating and sending e-mail or by scanning and sending a W-4 or equivalent form.
- The SDNH creates an online website that prompts an employer to enter new hire data and then submit the data.
- An employer sends the SDNH a disk containing the data.
- An employer sends the SDNH a magnetic tape containing the data.
- An employer sends the SDNH a cartridge cassette tape containing the data. Some states may no longer accept magnetic or cassette tapes.
- The state must conduct a match between the Social Security numbers
(SSN) in new hire reports and those in its state child support case registry
- The SDNH must notify the child support agency if a match occurs; and
- If a matched employee’s income is subject to wage withholding, the child support agency must generate and transmit an Income Withholding Order/Notice (IWO) to the employer.
Within three business days after the new hire data is entered into the SDNH, new hire data must be furnished to the National Directory of New Hires (NDNH).
- Employee name, address, and Social Security number (SSN)
- Employer name, address, and Federal Employer Identification Number (FEIN)
Reports may be made on the W-4 form or, at your option, an equivalent form. Your state may have an alternate form for reporting, but its use is optional. Although most states require only these seven basic data elements, some states do require or request additional data. State-specific information is available on the State New Hire Reporting Contacts and Program Information matrix.