Hiring a new employee involves more than just onboarding and orientation. Two critical compliance requirements, E-Verify and state new hire reporting, must be addressed early in the employment process. These systems are essential for verifying work eligibility and meeting government mandates, and at FocusPay Solutions, we provide the tools and support to help you manage them effectively.
This article outlines the purpose, process, and employer responsibilities related to both E-Verify and state new hire reporting, with practical guidance for staying compliant.
What Is E-Verify?
E-Verify is a federal web-based system operated by the Department of Homeland Security (DHS) in collaboration with the Social Security Administration (SSA). It is designed to confirm the legal work status of newly hired employees by cross-referencing the information provided on Form I-9 with government databases.
Who Must Use E-Verify:
- Federal contractors whose agreements include an E-Verify clause
- Private and public employers in states that mandate participation (such as Alabama, Arizona, Florida, Georgia, and others)
- Voluntary users in states without mandates who want to enhance internal compliance
In Alabama, all employers with one or more employees are required to enroll in and use E-Verify as a condition of doing business in the state.
E-Verify Process Overview:
- Complete Form I-9 within three business days of the employee's start date.
- Enter employee information into E-Verify through the online system.
- Review the verification results and provide employees with the opportunity to address any tentative non-confirmations.
- Follow DHS protocols based on the outcome of the verification process.
State New Hire Reporting Requirements
In addition to verifying eligibility to work, all employers are legally required to report new hires to a state-designated agency. This mandate is part of a nationwide effort to support child support enforcement, prevent fraud, and monitor employment trends.
Key Reporting Requirements:
- Timeframe: Reports are typically due within 20 days of the employee's hire date, though some states require reporting within shorter periods.
- Who Must Be Reported: All newly hired employees and rehires (as defined by each state).
- What Information Must Be Reported:
- Employee name, address, Social Security number, and date of hire
- Employer name, address, and federal Employer Identification Number (EIN)
- Where to Report: Each state maintains its own new hire reporting website or portal.
Notably, Alabama is a multi-state reporter, meaning employers with operations in multiple states may elect to report all new hires to Alabama, provided certain conditions are met and registration is completed.
FocusPay Solutions supports employers in fulfilling their reporting obligations efficiently by incorporating these requirements into our payroll workflow.
The Risks of Non-Compliance
Failing to comply with either E-Verify or new hire reporting requirements can lead to significant consequences, including fines, audits, and reputational harm. Many employers struggle to stay current on regulations that vary by state and may change without much notice.
How FocusPay Solutions Can Help
As a full-service payroll provider, FocusPay Solutions offers direct support to ensure your business stays compliant from day one of employment:
- E-Verify processing is completed by a dedicated FocusPay payroll specialist, removing the administrative burden from your internal team and ensuring timely submission.
- New hire state reporting is handled automatically, including support for Alabama's multi-state reporting program, to ensure proper filings across jurisdictions.
- Customized onboarding checklists to keep your HR and payroll processes aligned with legal requirements.
- Expert compliance guidance tailored to your industry and operating states.
Complying with E-Verify and new hire reporting requirements is essential for protecting your business and maintaining good standing with federal and state authorities. With FocusPay Solutions, you have a trusted partner that ensures these processes are handled accurately and efficiently.
To learn more about how our payroll services can support your compliance efforts or any other human resource management services, please contact Katelyn Parks at (334) 321-4729 or leave a message below.
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