Issue: Federal and state laws require you to file certain data about new employees.
Risk: Many employers overlook those requirements, risking per-employee fines up to $500 and bad PR.
Action: Make sure you or your payroll processor report new hires within 20 days.
With the economy cranking up, your organization may be doing a lot more hiring now. If so, make sure it's reporting newly hired or rehired employees to the state.
Federal and state laws mandate that all employers report certain identifying information about newly hired and rehired employees to a state agency within 20 days of their hire. While those requirements are six years old, employment attorneys warn that many employers still don't follow them.
Possible penalties: up to $25 per employee for failure to report, or up to $500 if you conspire with the employee to withhold the information from the state.
The information you report becomes part of the National Directory of New Hires, which is used primarily to locate parents who are delinquent on their child-support payments.
Each state has its own form, but all require the following basic information: employee's name, address, Social Security number and date of hire, plus your organization's name, address and employer ID number. Some states ask for additional data.
Bottom line: Check the rules with your state labor department. New-hire reporting obligations apply to all employees, regardless of whether they're full time or part time.
For details, visit www.acf.hhs.gov/programs/cse/newhire/library/brochures/fpls/ndnh.htm.