As a business owner/manager, you have many processes and tasks involved in your day-to-day workload. Scheduling, timekeeping, payroll, etc... How about new hire onboarding?
New hire reporting requirements are a set of obligations organizations must meet when onboarding a new employee. This primarily involves collecting important information from a new hire (for example, their name, address, email address, and Social Security number) and reporting it to the appropriate government agencies.
E-Verify should be part of the onboarding process. E-Verify is not like a background check service that an employer can use occasionally or just for certain hires. The employer must sign an agreement to participate in E-Verify; the primary obligation of E-Verify participation is to verify all new hires for as long as the employer is enrolled. As an employer in the United States, you may be required to participate in E-Verify. So, what is E-verify, and DO YOU have to participate?
For some employers, the answer is “No.” E-Verify is primarily a voluntary program. However, there are several companies that may be required to use E-Verify. For example, some federal contractors are required to use E-Verify.
In addition, some states have specific laws that require employers to use E-Verify. States that currently require this are Alabama, Arizona, Georgia, Mississippi, North Carolina, South Carolina, and Utah (for employers with 15 or more employees). Louisiana and Tennessee require E-Verify unless an additional, alternate verification is completed as outlined under state law, please refer to your state guidelines.
If you currently utilize E-Verify, please ensure you correctly complete your Form I-9. The most current form expires on 10/31/2022 with a revision date of 10/21/2019. Also, make sure to follow all directions or ask for assistance when completing the Form I-9. If you are ever being audited and your forms are not correctly filled out, the fine range is now $252 to $2,507 per Form I-9, as of January 11, 2022. You must store I-9s as you would all other sensitive employee documents, and these records must be kept for a minimum of 3 years.
Another very important part of new hire onboarding is new hire reporting. New hire reporting requirements are outlined in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). The PRWORA is federal legislation implemented by federal and state agencies jointly. They have two-related goals; to assist persons entitled to payments of child support by quickly and efficiently obtaining payments through wage garnishments and to help detect and prevent fraud in government benefit payments.
Federal laws require that you report all new hires within 20 days of their hire date. States can mandate a shorter time frame for new hire reporting, so you must make sure to adhere to your state law. Each state has its own guidelines and penalties for not complying with new hire reporting requirements. These fines can range from $25-$500.
The Administration for Children and Families has created a matrix for employers to refer to, and it is listed by state with your reporting timeframe, data elements (required information), the method of transmission that is accepted, and if the state requires the reporting of independent contractors. You can access the matrix by following the link below.
If you believe you should participate in E-Verify and are currently not enrolled, please refer to your state laws regarding this and follow the links below to enroll.
For more information on the above article or any human resource management services, please contact Amber Malik at (334) 321-4729 or by leaving us a message below.
