The New Hire Reporting Program is a way for
Employers to report information about newly hired employees and certain other employees.
Payors of income (people or companies that agree to pay someone for performing work) to report information about independent contractors (people who agree to perform work for a payor of income).
Insurance companies to report information about people who receive periodic payments under annuity contracts, disability income policies, and life insurance policies.
We compare the reported information to the information in our database of parents who have to pay child support by income withholding.
When a "match" occurs, we notify the employer, payor of income, or insurance company to
- Withhold (take out) child support from the wages or other benefits and
- Send the funds to DOR.
We also compare new hire information to find applicants for and recipients of public benefits such as
- Transitional Assistance
- Food Stamps and
- Unemployment compensation.
Who to report
If you're an employer, you must report
- All newly hired employees who work in Massachusetts.
- Employees who are returning to work after being off the payroll for 30 or more days.
- Employees who retire and will get retirement payments.
- Employees who file workers’ compensation claims.
If you're a payor of income, you must report
All newly hired independent contractors who are paid $600 or more over the year.
If you're an insurance company, you must report
Anyone who receives periodic payments under annuity contracts, disability income policies and life insurance policies.
When to report
Employers must report
New hires within 14 days of the start of, or return to, their employment.
Retired employees within 14 days of the date of retirement.
Employees who file workers’ compensation claims within 14 days of the date the claim is filed.
Payors of income must report independent contractors within 14 days of the start of employment.
Insurance companies must recipients of periodic payments when they make the first payment to the recipient.
Federal law requires all employers to follow their state's New Hire Reporting requirements. In Massachusetts, the new hire reporting requirements apply to all employers and payors of income regardless of the number of employees or independent contractors they employ. The requirements also apply to all companies, associations and others, including reciprocal exchanges, engaged as principals in the business of insurance under M.G.L. c. 175, § 1. See 830 CMR 62E.2.1 Reporting of New Hires for more information.
New hire reporting is not the same as quarterly wage reporting. The quarterly wage reports don't include all of the required new hire data elements. Often, information is out of date by the time you submit your quarterly wage data (employees have left the job, moved, etc.). It's important for new hire reporting data to be current so we can more quickly
- Locate parents who are ordered to pay child support and
- Establish and enforce child support orders.
There are penalties for employers, payors of income and insurance companies who
Don't follow reporting requirements, or
Report inaccurate (wrong) information.
The penalty is up to $25 for each employee, independent contractor or other recipient of periodic payments that is not reported or is inaccurately reported.
The penalty is $500 for each employee, independent contractor or other recipient of periodic payments if the failure to follow reporting requirements or the report of inaccurate information is the result of a conspiracy (agreement) between the employer, payor of income or insurance company and the employee, independent contractor or other recipient of periodic payments not to report the individual or to report inaccurate information.
See 830 CMR 62E.2.1 Reporting of New Hires, for more information.