G Employment Law Alert March 1998 MANDATORY REPORTING OF ALL NEW HIRES The Personal Responsibility Act and Work Opportunity Reconciliation Act of 1996 T he Personal Responsibility and Work works. This information may be transmitted Opportunity Reconciliation Act of 1996 through a new hire form, W-4 form, computer disk, (the “Act”) was passed as part of or web page on the Internet. President Clinton’s welfare reform legislation. The In New Jersey, the reporting of new employees by Act requires every employer to report all newly employers is voluntary and is expected to become hired employees to a designated federal or state mandatory once legislation pending in the State agency within twenty days of the date of hire. Senate is passed. Federal law requires such Under the Act, new hire reporting is required legislation to be implemented by May 1, 1998, and regardless of the employer’s size or type of business it is anticipated that New Jersey’s Directory of New and the full or part-time status of the employee. Hires will be outsourced and contracted to a private The stated purpose of the Act is to locate parents organization. When this happens, we will provide and establish or enforce child support orders. you with additional information. Although the Act was passed in 1996, its effective In New York, the reporting of new employees by date was delayed until recently. employers is mandatory within 15 days of the date Generally, the employer is required to report the that the employee signs an IRS W-4 form. The newly hired employee’s name, address, date of birth, employee’s name, address and social security social security number, and date of hire along with number, along with the employer’s name, address the employer’s name, address, and tax and tax identification number, and the date the W- identification number to the Directory of New 4 form was signed, or a copy of the W-4 form itself, Hires of the state in which a newly hired employee must be forwarded to the New York State This document is published by Lowenstein Sandler PC to keep clients and friends informed about current issues. It is intended to provide general information only. L Roseland, New Jersey Telephone 973.597.2500 65 Livingston Avenue www.lowenstein.com 07068-1791 Fax 973.597.2400
G Department of Taxation and Finance, New Hire regarding submissions is available by contacting Notification, P .O. Box 15119, Albany, New York 1-888-PAHIRES or on the Internet at 12212-5119. Penalties for non-compliance are $20 www.info@panewhires.com. multiplied by the number of employees for whom There are special rules for multi-state employers. the employer has failed to report, up to a calendar If you are an employer with employees in more than year maximum of $10,000. However, if the one state, you must select one state and report all employer and employee conspire together to avoid newly hired employees for all locations to that state. compliance, the penalties are more severe. Further The state selected must be a state in which you information regarding submissions may be obtained have employees. As a multi-state employer, you are from the New York Business Tax Information required to report magnetically or electronically Center at 1-800-972-1233. (diskette, cartridge, magnetic tape, or Internet). In In Pennsylvania, effective January 1, 1998, all addition, you are required to notify the Secretary of employers are required to report information on Health and Human Services in writing as to which newly-hired employees to the Department of Labor state you are choosing to report all your new hires. and Industry. The appropriate information should The address to contact is the Department of Health be sent to Commonwealth of Pennsylvania, New and Human Services, Office of Child Support Hire Reporting Program, P .O. Box 69400, Enforcement, Multi-State Employer Registration, Harrisburg, PA 17106-9400. In Pennsylvania, the P .O. Box 509, Randallstown, MD 21133. The fax date from which the 20 day reporting requirement number for that office is (410) 277-9325. begins is the first day the employee performs All employers are required to comply with the services for wages. An employer that fails to report Act notwithstanding the additional reporting newly hired employees may be provided a written burden discussed in this letter above. warning for the first violation and is subject to a Should you have any questions about how the Act affects civil penalty of up to $25 for each violation your business or have other questions regarding employment following the warning. If the employer’s failure to practices or workplace compliance issues, please contact report a new hire is the result of a conspiracy Martha L. Lester, Chair of our Employment Law Practice between the employer and the new employee, the Group, at the Somerville office at 908.526.3300 ext. 2014 penalties are enhanced. Further information or Julie Levinson Werner at the Roseland office at 973.597.2550.
G UPDATE: NJ Legislation Passed T he New Jersey Child Support Program each additional violation. If the employer conspires Improvement Act was just signed by with its employee to avoid compliance, the employer Governor Whitman. This New Jersey may be penalized up to $500. The New Jersey Act Act, in part, provides for a New Jersey State provides for a waiver of penalties under certain Directory of New Hires, and requires all employers instances. to report newly hired employees to the Department Additional rules and regulations providing more of Humans Services “or its designee.” This detailed information have not yet been promulgated information must be submitted within 20 days of the by the Department of Human Services, but are employee’s hiring, re-hiring, or return to work, scheduled to be disseminated before May 1, 1998. unless the employer utilizes magnetic or electronic We will advise you of those rules and regulations transmission, in which case the information must be when they become available. supplied every 15 days. Specifically, the employer must report the employee’s name, address, date of birth, and social security number, along with the employer’s name, address, and federal tax identification number. An employer will receive a written warning for its first violation and thereafter may be penalized $25 for
The New Jersey Child Support Program Improvement Act was just signed by Governor Whitman. This New Jersey Act, in part, provides for a New Jersey State Directory of New Hires, and requires all employers to report newly hired employees to the Department of Humans Services “or its designee.” This information must be submitted within 20 days of the employee’s hiring, re-hiring, or return to work, unless the employer utilizes magnetic or electronic transmission, in which case the information must be supplied every 15 days. Specifically, the employer must report the employee’s name, address, date of birth, and social security number, along with the employer’s name, address, and federal tax identification number. An employer will receive a written warning for its first violation and thereafter may be penalized $25 for each additional violation. If the employer conspires with its employee to avoid compliance, the employer may be penalized up to $500. The New Jersey Act provides for a waiver of penalties under certain instances. Additional rules and regulations providing more detailed information have not yet been promulgated by the Department of Human Services, but are scheduled to be disseminated before May 1, 1998. We will advise you of those rules and regulations when they become available.
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