November 19, 2021

Best Practices: New Hire Reporting Obligations

Running a business is a complex venture; even before you add personnel into the equation. Failing to consider various state, federal, and local employment-related laws can lead to serious problems for employers and their business operations. Noncompliance poses its own substantial risk including ‘bet the farm’ litigation scenarios. Below is a brief reminder of new hire reporting obligations for Arizona and California employers.

Arizona
All Arizona employers are required to report newly hired (and re-hired) employees to the Arizona New Hire Reporting Center within 20 days of their hire date. No employer is exempt. Much like California’s New Employee Registry, the Arizona New Hire Reporting Center facilitates the child support income withholding process. Employers may report online at az-newhire.com, by mail or fax. Some payroll services may also offer reporting services. Arizona provides two reporting methods to assist multistate employers.

California
All California employers are required to report the hiring of new employees to the California Employment Development Department’s (EDD) New Employee Registry within 20 days of their first day of work regardless of whether the employee resides in or outside the state of California. Employees rehired after at least 60 consecutive days of separation from the business must also be reported. Multistate employers may report all new hires in one state but must also notify the federal Department of Health and Human Services’ Office of Child Support Enforcement.

The New Employee Registry assists the state in tracking child support obligations. Penalties may be assessed for employers who fail to report, intentionally fail to report, or file false or incomplete reports.

Members with questions concerning new hire reporting obligations should contact Westerns Growers.