Employee Records and New Hire Filing

With the New Year upon us, we would like to stress the need to have your employee files in order. It is very IMPORTANT that files be filled out timely and accurately as outlined below.

1.) Filling out a new Federal Form W-4 (Employee’s Withholding Allowance Certificate) --should be filled out at the time of each employees hiring. It is recommended to be updated by each employee annually, and retained in their permanent employee file. We also suggested retaining a copy for a minimum of 3 years after termination of employment.

Purpose of this form is so the employer can withhold the correct federal income tax from the employee’s pay. Because tax situations may change, employees may want to refigure their withholding each year. The new form may be accessed at http://www.jaincpa.com/forms.php.

2.) New Hire Reporting – Federal law mandates every new hire be reported to the state(s) within 20 calendar days of a new employee’s first day of work. Texas has implemented the “Texas Employer New Hire Reporting Program” accepting Form ENHR or W-4 to meet the federal requirements.

Employer Responsibilities/Time Frames

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires employers to report new hires within 20 calendar days of their being hired. If reporting electronically, new hires must be reported at least twice a month, 12 to 16 days apart. A copy of printable form ENHR is available at http://www.jaincpa.com/forms.php.

To access different reporting methods: http://employer.oag.state.tx.us

Multi-State Employers

If an employer has employees in more than one state, the employer has the option to report all new hires to one state. The employer must notify in writing the Federal Office of Child Support Enforcement (OSCE) of the state to which the employer will report new hires and all FEINS.

Register as a multi-state employer by completing the Multi-state Employer Notification Form online at Multi-State Employer Online Registration or download the form at http://www.jaincpa.com/forms.php.

Helpful Tips for Reporting to the Employer New Hire Reporting Program

• Use the same FEIN to report new hires and quarterly wage information. This reduces the possibility of receiving duplicate Income Withholding Order/Notices.
• Report new employees as soon as they are hired.
• Report online to reduce paper, increase quality of data submitted, and view a history of reported employees for up to 8 hours. A file can also be uploaded to the Internet.
• As a multi-state employer, choose Texas as your reporting state. This is the only way the Texas Workforce Commission (TWC) receives new hire information of Texas residents who may be receiving unemployment benefits and working for a multi-state employer.

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The preceding is not intended to be legal advice pertaining to your situation and should not be construed as such.The information provided is intended as a general overview with regard to the subject matter covered.