Is Your Business in Compliance with New Hire Reporting?
One of the key services provided by payroll companies is new hire reporting. Federal Law mandates that all employers, regardless of type or size of business, comply with their state’s New Hire Reporting requirements. The Massachusetts new hire requirements can be found in Chapter 830 of the Code of Massachusetts Regulations.
Penalties for employers who fail to comply with the new hire requirements begin at $25 per employee or independent contractor. The penalties can increase to as much as $500 per employee/contractor if the failure to comply is the result of a conspiracy between the employee and employer.
All new employees hired in Massachusetts (regardless of age) must be reported to the state within 14 days of hire. Individuals who have been laid off or have not worked in more than 30 days must also be reported. Seasonal employees must be reported each time they return to work. Finally, all independent contractors to whom you anticipate paying over $600 per year must be reported.
It is important to note that reporting quarterly wage information for employees does not meet the new hire reporting requirements. Employers are encouraged by the state to report new hires electronically regardless of size. Companies who employ more than 25 employees are required to report new hires electronically.
If you have any questions about whether your company is in compliance with the Massachusetts New Hire Requirements, ask your payroll service.