Federal law requires every employer to report new hires to their state's new hire reporting directory — not just large companies, and not as a one-time setup. The obligation triggers the moment you hire your first W-2 employee, and it repeats for every subsequent hire and qualifying rehire. The federal deadline is 20 days. The filing goes to your state, not the IRS. The information the report requires is more specific than most employers expect, as some states require additional data exceeding what is mandated by the IRS.
What new hire reporting is and who must do it
Federal law — specifically the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, known as PRWORA — requires every employer to report newly hired employees to their state's new hire reporting directory. This is not a large-employer rule. It applies to every business that hires W-2 employees, regardless of size.
The obligation starts with your first hire. It also applies to rehires and other lapse in pay scenarios. The Federal regulation for rehired employees requires any employee who returns to work after a separation of 60 or more days to be reported as if they were a newly hired employee. Individual states may have unique regulations regarding rehire / lapse in pay rules.
If you just brought on your first employee, this requirement is in effect now.
The federal 20-day deadline and what goes on the report
The federal deadline for new hire reporting is 20 days from the employee's first day of work — not from when onboarding paperwork is completed, and not from the first paycheck. The clock starts on day one.
The same 20-day window applies to qualifying rehires. When an employee returns after a separation of 60 or more days, their first day back starts a new 20-day reporting clock.
Some states require new hire reporting sooner than 20 days. Check your state's new hire reporting directory for the exact deadline.
Every new hire report must include seven pieces of information:
- Employee full name
- Employee address
- Employee Social Security number
- Employee's first day of work
- Employer name
- Employer address
- Employer Identification Number (EIN)
Much of the required identifying information may already be collected during onboarding, but employers must ensure the new-hire report contains all information required by federal and applicable state law.
Where to file new hire reports and how the process works
New hire reports go to your state's new hire reporting directory — not to the IRS. Filing to the wrong agency does not satisfy the requirement.
Each state administers its own new hire reporting program, typically through its child support enforcement agency. Most employers file electronically through a state web portal. Paper filing is available in some states.
All state new hire reports flow into the National Directory of New Hires (NDNH), managed by the U.S. HHS Office of Child Support Services. Your filing destination is the state — not the NDNH directly. Find your state's new hire reporting portal through the HHS OCSS state directory.
What happens if you miss the deadline
Federal law establishes penalties for unreported new hires, with higher penalties when the employer and employee conspire to avoid reporting.
The two-tier structure matters. The base penalty applies to an administrative failure — not filing on time. The elevated tier applies when an employer and employee work together to avoid the reporting requirement.
Penalties accumulate per hire. An employer with multiple unreported new hires faces the penalty for each one separately.
Federal law permits states to also impose civil penalties for failure to comply with new-hire reporting requirements.
What to do if you have employees in more than one state
If your business has employees in more than one state, you would typically need to file new hire reports with each state separately. Federal law provides an alternative.
Multi-state employers may elect to file all new hires to a single designated state — SurePayroll By Paychex supports this.
Under this election, you notify HHS of your designated state. All subsequent new hire reports — regardless of where each employee works — go to that one state. One filing destination for every hire across your organization.
How SurePayroll handles new hire reporting
When you add a new employee in SurePayroll® By Paychex, the new hire report is submitted as part of your payroll setup. You do not file separately with your state's portal. The data required for the report — the same information collected on the employee's W-4 — is already in your payroll system.
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This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date
