If you're adding an employee who has not been paid by your company, select New Hire in the Active Status field when adding them. If this employee was previously terminated and is being re-hired, select New Hire. This will ensure that the employee is included in required new hire reporting to the Federal and state governments.
Federal and state law requires all employers to report their newly hired and re-hired employees. The penalty for non-compliance can be up to $500. Regulations were passed to help enforce Child Support rulings and reduce welfare payments. States use this information to match against child support orders to locate parents who may not be paying court-ordered child support. This reporting is also used to prevent fraudulent workers’ compensation and unemployment claims.
Note: Customers in California with an Applied for status will not have their New Hire files sent to the state until they provide their ID number. Also, employees must remain with a New Hire status for the file to be sent.