REPORTING OF NEW HIRES
15-24-1. Purpose. --
The purpose of this chapter is to
enhance the enforcement of support obligations by requiring employers to
report all new hires or rehires effective October 1, 1997, by establishing
a state directory of new hires to be reported to a national directory of
new hires, to establish procedures for reporting and penalties for failure
to report in accordance with Title IV Part D Section 454 of the Federal
Social Security Act (42 USC Section 654) and as more defined in section
15-24-2 of this chapter. This chapter shall be construed liberally to
effect this purpose.
15-24-2. General rule on reporting. --
On or before the
effective date of employment, a new employee must complete a W-4 form as is
required by both Rhode Island and Federal law. Internal Revenue Code
Section 3402 (8)
(2) (A).
Within fourteen (14) days of the employee's effective date of
employment or effective date of reinstatement, the
employer must submit to the department of administration, division of
taxation or its designee, the information as provided in
section 15-24-5.
15-24-3. Definitions. --
As used in this chapter, unless
the context otherwise requires:
(1) "Compensation" means payment owed by the payor of income for:
(a) Labor or services rendered by an employee; or
(b) Benefits including, but not limited to, vacation, holiday, and
sick leave, and severance payments which are due an
employee under an agreement with the employer or under a policy of the
employer.
(2) "Contractor" means a natural person who is eighteen (18) years of
age or older, who performs labor in this state to
whom a payor of income makes payments which are not subject to withholding
and for whom the payor of income is required
by the internal revenue service to complete a 1099-MISC form.
(3) "Date of hire" means either of the following:
(a) The first day for which an employee is owed compensation by the
payor of income; or
(b) The first day that a contractor performs labor or services for
the payor of income.
(4) "Days" means calendar days.
(5) "Department" means the department of administration, division of
taxation or its designee.
(6) "Dependent" includes a spouse or child or any other person who is
in need of or entitled to support from a person
who is declared to be legally liable for the support of that dependent.
(7) "Employee" means a natural person who performs labor in this
state and is employed by an employer in this state
for compensation and for whom the employer withholds federal or state
income tax from the employee's compensation.
(8) "Employer" means a person or entity doing business in this state
who engages an employee for compensation and
for whom the employer withholds federal or state tax liabilities from the
employee's compensation.
(9) "Natural person" means an individual and not a corporation,
government, business trust, estate, partnership, or
other legal entity, however organized.
(10) "Payor of income" includes both an employer and a person engaged
in a trade or business in this state who
engages a contractor for compensation.
(11) "W-4 Form" also known as the Employers Withholding Allowance
Certificate means the form issued by the
Internal Revenue Service of the United States to record the federal income
tax withholding allowance available to each
employer.
(12) "Rehire" means the first day for which an employee is owed
compensation by the payor of income following a
termination of employment lasting a minimum of twelve (12) consecutive
weeks. Termination of employment does not include
temporary separations from employment, including, but not limited to,
unpaid leave of absence, or a temporary layoff.
15-24-4. Employees obligation. --
On or before the
effective date of employment, an employee must
complete the sections of the W-4 form pertaining to the employees name,
address, date of birth, social security number,
signature and date of signing, and submit the form to his or her employer.
If an employee is being reinstated after a lapse in
pay, the employee may, but is not required to, complete a new W-4 form.
15-24-5. Employers reporting requirements. --
Beginning
October 1, 1997, an employer who hires or
rehires an employee on or after October 1, 1997, must report the hiring or
rehiring of the employee to the department or its
designee not later than fourteen (14) days after hire or rehire if
reporting on a W-4 or its equivalent, or twice a month, if
reporting electronically or magnetically.
(1) The report submitted shall contain the following:
(a) The employer's name, address, and federal identification
number;
(b) The employee's name, address, social security number,
and date of birth;
(c) Information regarding whether the employer has employee
dependent health care coverage available and the appropriate date
on which the employee may qualify for the coverage; and
(d) The address to which income withholding orders and garnishments
should be sent.
(2) Employers must report the information required under subsection
(1) by one of the following means:
(a) By mailing a copy of the W-4 form. If a copy of the W-4 form is
delivered by the United States postal services to
the department after its due date, the postmark date stamped on the
envelope is deemed to be the date of submission,
provided that the copy of the W-4 form was mailed in the United States,
first class, postage prepaid, and properly addressed
in accordance with instructions provided;
(b) By transmission by magnetic tape or electronically
in the format and tape layout prescribed by the department, in
the case of an employer transmitting reports magnetically or electronically,
by two (2) monthly transmissions not less than twelve
(12) days, nor more than fifteen (15) days apart;
and
(c) By any other means authorized by the department if
the means will result in timely reporting and provided the employer
obtains prior written approval to use said means. Use of alternative
means of reporting shall not affect the obligation of the employer
to submit the report within the time prescribed herein.
15-24-6. Transmission of wage withholding notices to employers.
--
Within two (2) business days after
the date information regarding a newly-hired employee is entered into the
state directory of new hires, the department shall
forward a wage withholding order to the employer unless the employee's
income is not subject to withholding pursuant to
section 15-5-24.
15-24-7. Failure to comply. --
Any employer who fails to
report as required under this section, shall be
liable for a civil penalty of twenty-five dollars ($25.00) for each
violation, to be assessed by the department, and shall be
required to provide such information. If it is demonstrated that the
employer conspired with the employee to avoid reporting,
a five hundred dollar ($500) civil penalty may be assessed by the
department. Liability shall be joint and several.
15-24-8. Unauthorized disclosure of information. --
Unauthorized disclosure of information caused by
the department under these provisions, by any employee or agent of the
state, is punishable by a fine of one hundred dollars
($100) per offense and is subject to administrative discipline of the
employee disclosing the information.
15-24-9. Department's obligation. --
The department shall
use information collected pursuant to this
chapter to prevent tax evasion, fraud in financial assistance, benefits or
loan programs administered by agencies including, but
not limited to, the department of labor and training and the department of
human services, and to assist the IV-D agency in
locating absent parents, and establishing, enforcing and modifying child
support orders.
