Federal law requires all employers to report information about newly hired employees to the Federal New Hire Registry. A new California law expands this reporting requirement to include all independent contractors paid or contracted to be paid $600 or more in a year. The reported information is then matched by computers to identify those new hires against persons with child support orders. The employment information is given to child support agencies to pursue collection of support.
Employer benefits of new hire reporting
The new hire information received is also matched against disability and worker's compensation benefit data bases. This has proven to be highly effective at catching fraudulent claims and has shown substantial savings to employers in workmen compensation pay outs.
Who to report
Every newly hired or rehired employee must be reported. This includes employees of all ages, those who work less than a full day, part-time and seasonal employees, and those who discontinue their employment prior to the 20th day of work.
When to report
Within 20 days of hire (date of hire is the first date of service.) Reporting should be done even if the employee terminates before the reporting deadline.
What to report
Employer payroll address
Federal employer ID #
Calif. Employer account #
Employee Social Security #
Employee date of birth
Employee date of hire
Employee state of hire
How to report
Use the DE 340 form (NOTE: Do not submit either the W-4 or DE-6 quarterly wage reporting form.) For more information about how to get the DE 340 form California state site on the Independent Contractor Reporting.
Where to report
To report new employees, mail or fax information to:
Employment Development Department
PO Box 997016 MIC 23
West Sacramento CA 95799-7016
Fax: (916) 255-0951
State information site - Please visit the California state web site on New Hire Registry, and the California state site on the Independent Contractor Reporting.