The new hire reporting law and compliance in New Jersey stems from a federal act called PRWORA (Personal Responsibility and Work Opportunity Reconciliation). It ensures that the state and federal agencies collaborate to attain two main objectives. Firstly, PRWORA of 1996 provides swift and efficient payments for individuals with child support orders, and the costs might take several forms, including wage garnishment and wage assignments. Secondly, PRWORA helps the local and federal agencies prevent fraud in benefit payments relayed by the government.
What is Required?
According to PRWORA, employers should fill and report the name, address, social security number, and the employee’s hiring date to the necessary state agencies. In addition, the federal employer identification number, address, and name of the employer should be in the PRWORA. The Claims Resolution Act passed into law in 2010 stated that employers should report the date an employee starts working to the State Directory of New Hires. In addition, in 2012, the definition of a newly hired employee was clarified to mean an employee who has not worked for the same company before. There should be at least two consecutive days between points of prior employment.
What the State Requires
Several states might require employers to provide additional information and data points concerning their workers. For such a case, the Multistate Employer Registry comes in handy and reduces the workload for employers with workers in multiple states. The State New Hire Reporting Contacts and Program information matrix has state-specific requirements. These necessities include contact information, mandatory and optional data elements, reporting frequency and period, method of transmission.
What Does the State Do with the New Hire Data
As stated earlier, one of the primary functions of the PRWORA is to ensure the smooth and swift paying of child support payments. The states typically use the new hire information to withhold wages for non-compliant parents that owe child support. PRWORA collaborates with the Federal Parent Locator Service (FLPS) to find non-compliant parents.
Two kinds of child support cases and orders exist.
Firstly, the IV-D describes a child support case managed by a given county or state agency, which is available for anyone. Secondly, the non-IV-D is handled by a private lawyer or parties linked to the state, tribal child support agency, or county. The FLPS uses two ways to track down non-compliant parents. It can identify sources of income, assets, and work and home addresses through a proactive matching method that compares data from different agencies to find a match. After a match has been identified, the FLPS automatically acquires new-hire, wages, and joblessness claimant data of noncustodial and custodial parents. It then orders the enforcement of income withholding of the existing accounts.
Conversely, the state can order FLPS and other related agencies to locate noncustodial parents through the database. Once the non-compliant parents are identified and located, the state ensures child support payments are handled in time. PRWORA now requires that employers update and report new hires within the first 20 days of income for the job done. The system uses the data from new-hire reports to locate noncustodial parents and their assets and issue an outstanding wage withholding.
The New Jersey Child Support Employer Services helps the state monitor new hire reports through several agencies and the PRWORA to make non-compliant responsible. It is a viable tool that would help families and prevent fraudsters.