Rhode Island New Hire Reporting Directory

Frequently Asked Questions (FAQ's) for New Hire Reporting

Please check our FAQ's before submitting questions on New Hire Reporting

Questions related to Action Transmittal OCSE-AT-97-04 are denotedy by an asterisk (*) below.

Question 1:  How do I get access to the New Hire Reporting WEB site?

1. You may register on-line for access to the Rhode Island New Hire Reporting Internet Site by visiting our public New Hire Registration site at www.RInewhire.com. After you complete the registration form we will process your request and e-mail a confirmation of access. This verification and confirmation will be completed within 24 hours. Please make note of your username and password!

2. You need to contact Rhode Island State Directory of New Hires with the following information:

 Employer Identifications Number:
 Employer Name:
 Street Address:
 City:
 State:
 Zip:
 E-mail Address:
 Contact Person:
 Telephone Number:

A Rhode Island State Directory of New Hires representative will contact you with your username, password and the url. The New Hire Reporting site is a secure site, we can not distribute access information via e-mail, the best and most effective method is to visit our Employer Registration site at www.RInewhire.com.

Question 2:  Do I still need to mail W-4's if registering new hires by internet?

No, your obligation has been met. There is no need to mail or fax a W-4 if you submit via the internet.

Question 3:  What should I do if I've been in violation of this law and was not aware until now?

Begin reporting your new hires immediately.

Question 4:  Must I report temporary or seasonal employees?

Yes. Temporary and seasonal employees are one of the primary reasons why the law was implemented. These employees move frequently between jobs, making it difficult to collect child support if the state is not notified. You do not need to report temporary employees that you employ through a temporary employee agency. In these situations it is the responsibility of the temporary agency to report the individual as a new hire.

Question 5: Is there a fine for not reporting new hire information?

Yes. Failure to report new hires is punishable by a fine determined by the state. If you begin timely reporting of new hires now, you will not be fined.

Question 6:  Since our organization reports all employees quarterly, and we have a high turnover rate, why is it necessary to incur the expense of sending a weekly list of all newly hired employees? They will show up on our quarterly wage report anyway.

While quarterly wage reporting plays an important role in enforcing child support obligations, it's no substitute for new hire reporting. New Hire reporting provides up-to-date employment information that the state uses to collect child support from individuals who move from job to job.

Question 7:  Who must I report?

All newly hired employees who live or work in a state must be reported. If you are unsure whether an individual is an employee, consult U.S. Treasury regulation Section 31.3401 (c)- 1.

Question 8:  Where do I mail, fax, or obtain tape layout information regarding the new hire information?

 For information on reporting through the Internet, visit our Rhode Island New Hire Reporting internet site at www.RInewhire.com or contact the New Hire Directory

 For information regarding tape layout, see our record layout page.

 Mail W-4 forms to designated New Hire Reporting Department, Rhode Island New Hire Reporting Directory P.O. Box 540220, Omaha NE 68154

 Fax W-4 forms to designated New Hire Reporting Department, 1-888-430-6907

Question 9:  Must I report employees returning from maternity, family or other leave of absence?

Yes. Any time there is a lapse in pay of 30 days or more, for any reason, and an employee is reinstated, the employer must submit a report. If the employee remains on the payroll while away from the job, the employer need not submit a report when the employee returns to work.

Question 10:  We do not officially hire employees until after the three month probationary period has been completed, even though they are on the payroll. When do they count as new hires?

The employee should be reported within 14 days of their first day of work, regardless of any probationary period.

Question 11:  Can you provide me with additional W-4 forms?

If you would like copies of the W-4 form, you can call the IRS at 1-800-TAX-FORM, or visit the IRS on the Web at: www.irs.ustreas.gov

Question 12:  I have no employees who pay child support. Why have I received this notice?

All newly-hired employees must be reported to the designated New Hire Reporting Department, whether or not the employer believes that a given employee owes child support. We compare this information against the names of child support obligors and recipients of public assistance benefits, to improve child support collections and detect fraud and abuse in public assistance benefits programs.

To: State Agencies Administering Child Support Enforcement Plans under title IV-D of the Social Security Act and other interested individuals.

Subject: Policy questions and responses regarding the National Directory of New Hires under the Provisions of the "Personal Responsibility and Work Opportunity Reconciliation Act of 1996"

Background: The "Personal Responsibility and Work Opportunity Reconciliation Act of 1996" (PRWORA) requires States to develop a State Directory of New Hires that meets Federal requirements of either October 1, 1997 or October 1, 1998, depending on whether a State had a new hire reporting law in effect before August 22, 1996. The law requires the Department of Health and Human Services to develop a National Directory of New Hires by October 1, 1997. The National Directory of New Hires must be able to accept new hire reports and quarterly wage and claim data from every state Directory of New Hires by October 1, 1998. The Office of Child Support Enforcement (OCSE) has received numerous questions from states and individuals regarding the interpretation of PRWORA's provisions for the State Directory of New Hires and the National Directory of New Hires. The purpose of this Action Transmittal (AT) is to inform States and other interested individuals and organizations of OCSE's policy responses to the questions received regarding the New Hire Provisions in PRWORA.

Questions about the New Hire Provisions of the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA).

Section I. - New Hire Reporting

*Question 13: When must States meet the Federal requirements for State Directories of New Hire?

Answer: Section 453A(a)(1)(B) of the Social Security Act specifies that States which did not have a new hire reporting law in existence as of August 22, 1996, must establish a State Directory of New Hires by October 1, 1997, which meets the Federal requirements of Pub. L. No. 104-93.

Section 453A(a)(1)(B) allows States which already had a new hire reporting law prior to the enactment of new Federal mandates under Pub. L. No. 104-93 additional time to conform to the requirements of section 453A and to continue to operate under those State laws until October 1, 1998. However, States must meet requirements to report new hire and quarterly wage data to the National Directory of New Hires, as outlined at section 453A(g)(2), by October 1, 1997. Therefore, to the extent that pre-August 22, 1996 State may differ from the Federally mandated elements, States may continue to operate their directories under the prior plan, but must meet Federal requirements on and after October 1, 1998.

Note: Section 395 of PRWORA provides for a grace period for States which need to enact legislation to implement the new requirements. See questions 11 and 12.


*Question 14:  If a State had a new hire law in place for another program, such as Unemployment Insurance, before August 22, 1996, does that State have until October 1, 1998, to meet the new Federal requirements?

Answer: YES. The statute does not specify that a new hire reporting law in existence before August 22, 1996, must have been for child support purposes. Thus, a State with a new hire reporting law for another program (such as Unemployment insurance) has until October 1, 1998, to meet the new Federal requirements under Pub. L. No. 104-93. However, all states must meet requirements to report new hire and quarterly wage data to the national Directory of New Hires, as outlined at section 453A(g)(2), by October, 1997.


*Question 15:  When is an individual considered a new hire?

Answer: An individual is considered a new hire on the first day in which an individual performs services for remuneration, i.e. first day of work. This is the first day in which an employer begins to withhold amounts for income tax purposes.


*Question 16:  Must an employer report an employee who is being recalled from a layoff or who is returning from a leave of absence?

Answer: If the employer/employee relationship has been severed and a returning individual is required to submit a W-4 form to the employer, the employer is required to furnish a new hire report to the State Directory of New Hires.


*Question 17:  Do entities hiring independent contractors or subcontractors have to report new hires? Do independent contractors or subcontractors have to report new hires?

Answer: Entities do not have to report new hiring of independent contractors or subcontractors. However, entities must determine whether or not the individual is in fact an independent contractor/subcontractor or whether the individual is really an employee. Entities must use the test and factors discussed in question 1 of this section (concerning the definition of an employee) to determine if the individual is an employee whose hiring must be reported.

Although an independent contractor or subcontractor may not be an employee of the entity which hired him or her to perform a particular job function, he or she may be his or her own "employer" and/or an "employer" of others that may be required to report new hires as an employer under section 453A. The contractor must determine whether the legal relationship of employer and employee exists to determine if he or she or others hired are employees; i.e. does the person for whom the services are performed have the right to control and direct an individual who performs the service not only as to the result to be accomplished but also as to the details and means by which the result is to be accomplished. If future information is needed regarding the definitions of independent contractors/subcontractors and employees, the IRS publication referenced in question 1 may be helpful.


*Question 18:  May States require employers to report new hires in less than twenty (20) days after date of hire?

Answer: YES. Section 453A(b)(2) governs the timing for submittal of required reports. It states that "[e]ach state may provide the time within which report shall be made with respect to an employee, but such report shall be made (A) not later than 20 days after the date of the employer hires the employee[.]"

Because Federal law allows each state to set the reporting period for employers, subject to Federal statutory limits, States have flexibility and may impose requirements more stringent than "within 20 days of hire" such as "within 5 days of hire." Allowing employers no more than 20 days after hiring to report the required information establishes a maximum allowable amount of time for employers to comply. If a State elects to allow 20 days, employers must transmit the information about newly-hired employee at some point between the date of hire and 20 days thereafter. Certainly, an employer could report immediately or within a few days and not utilize the full range of 20 days.


*Question 19:  May States require employers to submit the Federally-mandated information on a form developed by the state?

Answer: NO. The reporting format for the employers to use in submitting information to state Directory of New Hires is specified under Federal law. Section 453A( c ) requires that reporting must "be made on a W-4 form, or at the option of the employer, an equivalent form" (emphasis added). Employers are given the choice to define an "equivalent form." Congressional intent was to provide employers maximum flexibility regarding the mechanism for submitting the new hire information. States are permitted to develop a form for employers to report Federally-mandated new hire data as long as it is clear that the use of such forms is optional.


*Question 20:  Is a master file of Employer Identification Numbers (EINs) available from the Internal Revenue Service (IRS) to the States for the purpose of facilitating accuracy in the new hire reporting data requirement?

Answer: The law does not appear to provide authorization for States to have access to a mater file of Federal EINs from the IRS. DHHS and IRS are looking into this issue and we will notify States if it can be resolved. An alternative option for State Directories of New Hires is to utilize the capability of State Employment Security Agencies to cross-reference State EINS with Federal EINs.


*Question 21:  Can a State choose where to locate the State Directory of New Hires?

Answer: YES. Section 453A does not specify that the State Directory of New Hires must be located in a specific agency. States may determine where to house the State Directory of New Hires. E.g. child support agency, State employment security administration, revenue department, private vendor under contract with the State or local child support enforcement agency.


*Question 22:  Will the State Directory of New Hires be required to keep new hire data for a specific time period? How long will the National Directory of New Hires keep new hire data and quarterly wage and unemployment compensation data file?

Answer: There are no Federal time requirements in section 453A or section 453 for maintaining new hire data in the State Directory of New hires or the National Directory of New Hires. States that currently operate new hire programs maintain data for the following time periods: Minnesota - 9 months; New York - 9 months; Iowa - 6 months. A final decision has not been made as to how long data will be maintained on file in the national Directory.


*Question 23:  Must a State pass a law to implement a new hire program?

Answer: NO. Section 545(28), as added by section 313(a)(3) of PRWORA, requires that the State plan provide for the operation of a new hire directory, but there is no specific State law requirement under section 466. The State would simply need to ensure that its procedures comply with Federal mandate.


Question 24:  How long will States which need to enact legislation have to implement the new hire program?

Answer: The deadline will vary depending upon each legislative calendar, but generally will not be beyond January 1, 1998. Under section 395 of PRWORA, States needing a legislative change are granted a grace period until the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after enactment of P.L. 104-93 (August 22, 1996). Each year of a two-year legislative session is deemed to be a separate regular session.