Every company in the U.S. must report new employees. Learn why, and how to do so efficiently.
Picture this: You’ve spent weeks (or even months!) looking for the perfect new employee. After scrutinizing piles of resumes and sitting through countless exhaustive interviews, you’ve finally found the one. All the boxes check; they seem like the perfect candidate. You extend an offer, and they accept! Now they’re ready to work. That’s all there is to it, right?
Not quite. If only recruitment were that simple…
Anyone who’s ever hired a new employee before knows that there is typically an onboarding process when bring new hires to your company. Among the initial training sessions and setting up the first meet-and-greets with staff, it is also the employer’s responsibility to send their new hire paperwork to their local state government.
It’s a Requirement
It should come as no surprise that companies in the U.S. report their new hires to the government not because they want to, but rather because they have to.
According to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, every company in the United States must send notice of their new hires (or rehires) to their local state government. One of the purposes behind the federal law was to make it easier for the government to track employees for potential child support cases.
“Local” in this sense is defined as where the employee works, not where they live. So, if the new employee lives in Pennsylvania but works in New Jersey, then the company must send their new employee form to the New Jersey New Hire Reporting Center. For companies that have offices in multiple states, they must first contact the U.S. Department of Health and Human Services’ Office of Child Support Enforcement to determine which state to report to. See here.
New Hires Means New Enrollments
Don’t forget, when a new employee (or rehire) is brought onboard to a company, that person must learn everything they need to know regarding their eligibility for benefits. Remember the Four Types of Benefits Changes? New Enrollments are one of them.
Now, when you take into consideration the amount of work that onboarding a new employee creates for HR (drafting new hire reports, training employees, communicating benefits knowledge, etc.) one can see that potential blunders may arise. That’s why technology is key to minimizing mistakes and maximizing efficiency. Case in point:
…It’s Just Another Task to Automate.
Let’s face it. HR professionals have better things to do than fill out yet another paper form. And with the way technology is impacting the workplace, the reporting of a company’s new hire to the government is an HR activity practically begging to be automated.
For solutions focused on automating the new hire reporting process, look towards the benefits technology marketplace. There you’ll find products that work within your existing payroll software, to sort-of “upgrade” its inherent capabilities. For example, you’ll want a solution that can automatically generate new hire reports when a new hire event benefit change is detected in your HR/payroll system. It’d also be a clever idea to find a product that can proactively monitor for these types of events as well.
For more information about new hire reporting the associated legal requirements, download our information guide here. Also, if you’re interested in learning more about EverythingBenefits’ own Automated New Hire Reporting solution, click here.