Frequently Asked Questions

About the Law
What is the new hire law?
Who must report?
Who must be reported?
Is anyone exempt from this law?
Do Independent Contractors (1099's) have to be reported?
Are labor unions and hiring halls required to report?

Basics of New Hire Reporting
Why do we need new hire reporting?
What information must I report?
How do I report?
Where do I report new hires?
How often must I report?
How will the information be used?
I've never reported new hires, what do I do?

Common Employer Questions
I am an employer with employees in more than one state. What special considerations, if any, need to be made for this?
Is there an easier way to report other than submitting a New Hire Reporting Form?
What if I have questions about child support or income withholding?
Do I have to report if I do not hire anyone?
Are domestic employees (maid, nurse, gardener) required to be reported?
I am an employer who has more than one address. Which one should I list?
I provide employee information on my Quarterly Wage Reports. Why must I also report the employee as a new hire?
Do temporary agencies have to report their new hires for every assignment?
Do I need to report an employee who worked for a couple of hours or days and then quit?
Do I have to include my FEIN on line 10 of the W-4? The instructions say to include it only if I sent it to the IRS.
If I take over a business, do I have to report all of the employees?
In addition to reporting new hires, do I need to report terminated employees as well?
Can I send an outdated W-4?
What if I still have more questions about new hire reporting?

About the Law

What is the new hire law?

The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 42 U.S.C. 653a, requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire or re-hire date.

Back to Top

Who must report?

All employers and/or labor organizations in the State of Michigan.

Back to Top

Who must be reported?

Employers are required to report the following employees:

• Re-hires or Re-called employees: Employers must report re-hires, or employees who return to work after being laid off, furloughed, separated, granted a leave without pay, or terminated from employment after 60 days.  Employers must also report any employee who remains on the payroll during a break in service or gap in pay, and then returns to work after 60 days. This includes teachers, substitutes, seasonal workers, etc.

• Temporary employees: Temporary agencies are responsible for reporting any employee who they hire to report for an assignment. Employees need to be reported only once; they do not need to be re-reported each time they report to a new client. They do need to be reported as a re-hire if the worker has a break in service or gap in wages from your company.

Back to Top

Is anyone exempt from this law?

No one is exempt from this law.

Back to Top

Do Independent Contractors (1099's) have to be reported?

Governmental agencies must report independent contractors they hire and all other employers may provide the same information on their independent contractors if they choose.

Back to Top

Are labor unions and hiring halls required to report?

Labor unions and hiring halls must report their own employees; that is, individuals who work directly for the labor union or hiring hall. If the labor union or hiring hall simply refers individuals for employment, it does not need to file new hire reports for these actions. If a labor organization actually pays the individuals whom it refers (as opposed to having them paid by the person or entity to whom they have been referred), the labor organization would be considered the "employer" and subject to the new hire reporting requirements.

Back to Top

Basics of New Hire Reporting

Why do we need new hire reporting?

New hire reporting speeds up the child support income withholding order process, expedites collection of child support from parents who change jobs frequently, and quickly locates alleged fathers/non-custodial parents to help in establishing paternity and child support orders. New hire reporting helps children receive the support they deserve. New hire reporting also saves taxpayers by preventing fraud in welfare, workers compensation and unemployment compensation. Employers are a key partner in ensuring financial stability for many children and families and should take pride in their role.

Back to Top

What information must I report?

In accordance with Federal legislation, the State of Michigan asks for the following information:

• Employer's Federal Employer Identification Number (FEIN) - If you have more than one FEIN, please make certain you use the same FEIN you use to report your quarterly wage information when reporting new hires.
• Employer's Name
• Employer's Address
• Employee's Name (First, Middle, Last)
• Employee's Address
• Employee's Social Security Number
• Employee's Date of Birth (optional)
• Employee's Date of Hire (required)
• Employee's Driver's License (optional)

Additional information may be required if reporting electronically. Please click here for electronic reporting specifications.

Back to Top

How do I report?

There are a variety of ways to report new hires, including online reporting, electronic reporting and by mail or fax. For more information on the convenient reporting options available, click here. 

Back to Top

Where do I report new hires?

Electronic Reports - Using our Web site's online reporting feature is a very popular choice for employers. This feature provides a printable confirmation of reports received and is available 24 hours a day, 7 days a week.

Employers can send new hire data files in a variety of ways, including transferring files through this Web site, through internet connection using File Transfer Protocol (FTP), or mail reports to
the Michigan New Hires Operation Center on diskette. Click here to learn more about electronic reporting.

Non-Electronic Reports - Paper new hire reports may either be faxed or mailed to the Michigan New Hires Operation Center.

Back to Top

How often must I report?

Employers must report within 20 days of a new employee's hire date. Employers who submit reports magnetically or electronically shall submit the reports in two monthly transmissions not more than 16 days apart. 

Back to Top

How will the information be used?

Federal laws contain strict guidelines for the use of new hire reporting information. Michigan's child support computer system matches new hire information against open child support cases to locate alleged fathers/non-custodial parents to establish paternity and child support orders, and enforce existing orders. Once these matches are done, the new hire information is sent to the National Directory of New Hires and is utilized by Child Support Agencies nationwide.

New hire information can also be used by states to help detect and prevent fraudulent payments to recipients of unemployment insurance, workers compensation, and welfare benefits.

The use of this information provides financial support for Michigan's families and a reduction in welfare and unemployment insurance costs. 

Back to Top

I've never reported new hires, what do I do?

Begin by reporting any new employees you've hired within the last 180 days. Continue by reporting any new hires you have within 20 days of their hire date.

Back to Top

Common Employer Questions

I am an employer with employees in more than one state. What special considerations, if any, need to be made for this?

New hire reporting is required in all 50 states. One of the goals of new hire reporting legislation is to make it as easy as possible for employers to comply. For those employers with employees in more than one state, we have two convenient options for reporting. Click here for more details on multistate reporting.

Back to Top

Is there an easier way to report other than submitting a New Hire Reporting Form?

We strongly suggest reporting electronically. You can either report new hires using our Web site or transmit a data file created by your company's human resources or payroll software. Electronic reporting will eliminate paperwork, increase the accuracy of the reports, allows faster processing, and can save on postage and other costs. Our Web site even provides a printable confirmation of new hires you report during a session! Electronic reporting can also qualify Multistate employers to report new hires directly to one state.

Back to Top

What if I have questions about child support or income withholding?

The New Hire Reporting Center does not have access to specific child support information and does not have the ability to answer questions related to child support.

Contact the Office of Child Support.

Back to Top

Do I have to report if I do not hire anyone?

No.

Back to Top

Are domestic employees (maid, nurse, gardener) required to be reported?

New hire reporting legislation requires all "employees" to be reported. Thus, an individual who is an employee for purposes of federal income tax withholding from wages is also an employee for new hire reporting purposes. If you need to determine if you should be paying federal income tax for your employees, please contact the Internal Revenue Service at (800) 829-1040 or visit them at www.irs.gov.

Back to Top

I am an employer who has more than one address. Which one should I list?

The address where you want income withholding orders sent should be used. A street address is preferred, as long as you can receive mail there.

Back to Top

I provide employee information on my Quarterly Wage Reports. Why must I also report the employee as a new hire?

New hire information from the Quarterly Wage Reports becomes available two to six months after the date of hire. When you immediately report new hires, there is an improved chance of locating the individual while employed and the required child support action can be promptly taken. In addition, fraudulent unemployment insurance, workers compensation, and welfare benefit payments can be quickly detected.

Back to Top

Do temporary agencies have to report their new hires for every assignment?

Temporary agencies are responsible for reporting their workers who sign a W-4 form and report to an assignment. Workers need to be reported only once; they do not need to be reported each time they report to a new client. If the worker has a break in service from your agency and a new W-4 form is required, then a new hire report is also needed.

Back to Top

Do I need to report an employee who worked for a couple of hours or days and then quit?

If the employee filled out a W-4 form and only worked for a few hours, that employee must be reported. Although that employee is no longer with your company, there is useful information that can be obtained, such as home address and work history.

Back to Top

Do I have to include my FEIN on line 10 of the W-4? The instructions say to include it only if I sent it to the IRS.

Yes, if you are sending in your report by W-4, you must include the employer name, address, and Federal Employer Identification Number (FEIN) in blocks 8 and 10 of the W-4 form. If you have more than one FEIN, please make certain you use the same FEIN you use to report your quarterly wage information when reporting new hires.

Back to Top

If I take over a business, do I have to report all of the employees?

No, not if these employees have previously been reported and if you as the new employer will continue to honor any Income Withholding Notices that are in effect. If you will not honor the previous withholding notices you must report all employees as new hires. Employers must report any newly hired employee who is hired after that date. If you are unsure if employees have been previously reported, we recommend reporting any employee hired within the last 180 days.

Back to Top

In addition to reporting new hires, do I need to report terminated employees as well?

No. Only new hires and re-hires are required to be reported to the Center. However, if the terminated employee had an Income Withholding Order for child support, the termination should be reported to the agency that issued the Order.

Back to Top

Can I send an outdated W-4?

Yes, but if you need new W-4 forms, please contact the Internal Revenue Service.

Back to Top

What if I still have more questions about new hire reporting?

Do not hesitate to call the Michigan New Hires Operation Center toll-free at (800) 524-9846 with any questions regarding the new hire reporting process. Our help desk staff is available Monday through Friday, 8:00am to 5:00pm Eastern Time. Our toll-free number operates 24 hours a day, seven days a week.

Back to Top