New Hire Reporting - Frequently Asked Questions
What is New Hire reporting, and what will be done with the information?
Why is there a national directory of New Hires?
What are the benefits of the New Hire Reporting program?
When is an individual considered a New Hire?
Are temporary agencies required to report each individual placed by their agency?
Are day labor employees and Rent-a-Kid participants reportable as New Hires?
Am I required to report juvenile employees?
Am I required to report independent contractors as New Hires?
Are employers required to notify the New Hire Reporting Center when employment has been severed?
If I want to report electronically, do I need to follow a certain format?
Isn't new hire information currently available through quarterly wage reporting?
For further information, please refer to the Federal Office of Child Support Enforcement's Questions and Answers Support.
What is New Hire Reporting, and what will be done with the information?
New Hire reporting is the process by which an employer reports newly hired employees to the New Hire Reporting Center within 20 calendar days of the date of hire. Information reported to the New Hire Reporting Center will be submitted to the Department of Social Services where it will be matched against child support records to locate parents, establish child support orders, and enforce existing orders. In addition to this, New Hire information may be used to establish paternity. There will also be a National Directory of New Hires that will contain New Hire information from all states.
Why is there a national directory of New Hires?
Over 30 percent of child support cases involve non-custodial parents who do not live in the same state as their children. By matching this information at a national level, the federal Office of Child Support Enforcement will be able to assist state agencies in locating non-custodial parents living in other states.
What are the benefits of the New Hire Reporting Program?
The lack of child support often forces families to seek welfare, Medicaid and Supplemental Nutrition Assistance Program (SNAP). Timely reporting of New Hire information will enable state agencies to locate absent parents faster and will decrease families' dependence on public assistance. New Hire information will also be matched against current Unemployment Insurance and Workers' Compensation claims to prevent fraudulent and erroneous payments.
When is an individual considered a New Hire?
An individual is considered a New Hire on the individual's first day of work. (The first day in which the individual performs services for pay.)
Are temporary agencies required to report each individual placed by their agency?
Yes. If the temporary agency is paying wages to the individual, the temporary agency must submit a New Hire report for that individual.
Must an employer report:
an employee who is being recalled from a layoff,
an employee who is returning from a leave of absence, or
an employee who is seasonal?
Yes. If there has been a break in employment of 30 days or more, the employer is required to report the individual to the New Hire Reporting Center even if a new W-4 Form is not filled out.
Are day labor employees and Rent-a-Kid participants reportable as New Hires?
Yes. If an employer hires Rent-a-Kid participants or day labor workers, the employer must report those individuals, because an employer/employee relationship exists.
Am I required to report juvenile employees?
Yes. There are no age exceptions written into the South Dakota New Hire law. Employers are required to report all newly hired employees, regardless of age.
Am I required to report independent contractors as New Hires?
No. An independent contractor is not required to be reported if he or she is truly an independent contractor. The Department of Labor and Regulation may need to determine if the person is an independent contractor and will handle these inquiries on an individual basis. Please contact an Unemployment Insurance tax representative at 605.626.2312 for more information.
When a business changes ownership and the employees are retained after the transfer, do the employees have to be reported as New Hires?
Employees that are retained after a business changes ownership are not considered to be New Hires; therefore, they are not required to be reported under the new business. However, if the new business is a corporation, the corporate officers and any other newly hired employees must be reported.
Do I have to report an employee who quits or is terminated from employment before the New Hire Report is due?
Yes. Because an employer/employee relationship existed and wages were earned, a new hire report must be submitted. This information can become crucial when trying to locate a non-custodial parent.
Are employers required to notify the New Hire Reporting Center when employment has been severed?
No. The New Hire Reporting Center only collects information when employees are hired.
If an employer has employees that work in one state but live in another state, which state should they be reported to?
Employees should be reported to the state they work in, not the state they live in.
If I have employees in more than one state and I decide to report all my New Hires to one state, can I report them over the Internet?
Yes. A multistate employer who has chosen to report to only one state must report electronically. Reporting over the Internet is considered to be electronic and is acceptable for multistate employers. If the New Hire report is filed electronically, it must be transmitted twice monthly, not less than 12 nor more than 16 days apart. And it must be formatted according to the New Hire Reporting Center electronic specifications. Click here for the specifications in Adobe .pdf format*.
If I have already registered as a multistate employer (reporting all New Hires to one state) and I start or acquire a new business, do I need to register the new business with the multistate directory?
Yes. Employers who apply for the multistate reporting option receive a confirmation letter. All of the information the employer reported to the multistate directory is on the second page of this letter; this includes Federal Employer Identification Numbers (FEINs), business names, contact names, addresses, etc. Simply write the change of information or additional business on the second page and fax or mail a copy to the multistate directory. The multistate directory fax number and address are listed on the first page of the confirmation letter.
If I want to report electronically, do I need to follow a certain format?
Yes. Specifications for filing New Hire reports electronically are available in Adobe .pdf format*; click here.
Isn't new hire information currently available through quarterly wage reporting?
Quarterly data is often outdated before the child support office receives the information because some non-custodial parents change jobs frequently. There can be as much as a six-month lag from the time that data is submitted until it is available to the child support office. Often employees who are found through quarterly wage data are no longer working, and wage withholding can not be initiated. The new hire reporting program allows the child support office to find non-custodial parents faster. That allows child support orders to be established and/or enforced much faster.
*Opening and printing Adobe .pdf files requires Adobe Acrobat Reader. Click here as needed to download the free Adobe Acrobat Reader.
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Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184
