Why do employers need to report new hires?

Employers are required to report new hires to help both state and federal agencies maintain accurate employment records and enforce legal programs. The main reasons include:

• Child Support Enforcement: Reporting helps locate non-custodial parents and ensures that child support orders are properly enforced.

• Fraud Prevention: Detects individuals who may be simultaneously claiming unemployment or workers’ compensation benefits while employed.

• Workforce and Labor Market Planning: Provides state agencies with data to monitor employment trends and plan workforce programs.

• Legal Compliance: Federal and state laws mandate reporting; failure to comply may result in penalties.