Hiring a new employee comes with more than onboarding paperwork and payroll setup. Employers are also required to report newly hired and rehired employees to their state’s New Hire Reporting Directory. Failing to comply can result in penalties and unnecessary administrative issues.

Here’s what you need to know — and how KPM helps ensure your business stays compliant.

What Is New Hire Reporting?

New hire reporting is a federally mandated requirement under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). It requires employers to report certain information about newly hired and rehired employees to a designated state agency.

The purpose of new hire reporting is to:

• Assist state agencies in enforcing child support orders
• Prevent fraudulent unemployment and workers’ compensation claims
• Ensure benefit programs are administered properly

 
All employers, regardless of size, are subject to these reporting requirements.

Who Must Be Reported?

Employers must report:

• All newly hired employees
• Rehired employees (those returning to work after separation)
• Employees who were previously on payroll but have been inactive and are returning

 
In general, an employee is considered “newly hired” on the first day they perform services for pay.

Independent contractors may also need to be reported in certain states, as requirements vary by jurisdiction.

What Information Is Required?

While requirements vary slightly by state, employers typically must report:

• Employee’s full name
• Employee’s address
• Employee’s Social Security number
• Employer’s name
• Employer’s address
• Employer’s Federal Employer Identification Number (FEIN)

 
Reports must generally be submitted within 20 days of the employee’s hire date (some states require shorter timeframes).

Why Compliance Matters

Failure to report new hires can result in:

• Monetary penalties per unreported employee
• Increased scrutiny from state agencies
• Additional administrative burdens and compliance risk

 
Timely reporting helps protect your organization and supports state enforcement programs.

How KPM Supports Payroll Clients

As part of our payroll services, KPM assists clients with new hire reporting to help ensure compliance and reduce administrative workload.

For payroll clients, KPM:

• Collects required employee information during onboarding
• Submits new hire reports to the appropriate state agency
• Monitors filing deadlines
• Helps address reporting errors or rejections

 
Our goal is to streamline the process so you can focus on running your business — not managing compliance filings.

What We Need From You

To ensure timely reporting, it is critical that:

• New hire information is submitted promptly
• Hire dates are accurate
• Required onboarding documentation is completed in a timely manner

 
Delays in providing employee information can result in late reporting and potential penalties.

Questions About New Hire Reporting?

New hire reporting requirements can vary by state and business structure. If you have questions about your obligations or how reporting is handled for your account, please contact your KPM payroll specialist.

We are here to help you stay compliant and confident.