Date of Hire refers to the day an individual commences performing services for wages as an employee (Symmetry Software, 2018). It marks the official start of an employment relationship and has implications for various aspects of payroll processing, employee benefits, and legal compliance.
Key Facts
- Definition: Date of Hire is the day when an individual first performs services for wages as an employee.
- New Hire Reporting: Employers are required by federal law to report information on newly hired employees to a designated state agency shortly after the date of hire.
- Paperwork Completion: The hire date is typically the date when an employee completes their new hire paperwork, which includes forms like W-4, I-9, state forms, and other payroll withholding forms.
- Payroll Processing: An employee cannot be added to payroll until their new hire paperwork is completed, and they cannot receive payment for their work until they are officially hired.
- Start Date vs. Hire Date: While the hire date is when the paperwork is completed, the start date is when an employee actually begins working and can be paid. These dates can be the same or different depending on the company’s onboarding process.
- Benefits and Time Off: The start date is important for determining when an employee becomes eligible for benefits like paid time off and health insurance. These benefits are typically offered after a certain amount of time has passed since the start date.
- Reporting Purpose: New Hire reporting programs assist states in locating parents who are living in other states for child support enforcement purposes. By matching new hire data with child support case participant information, states can establish paternity, child support orders, or enforce existing orders.
New Hire Reporting: A Legal Obligation
Federal law mandates employers to report information on newly hired employees to a designated state agency within a specified timeframe (Administration for Children and Families, 2022). This reporting requirement, known as New Hire Reporting, plays a crucial role in child support enforcement efforts. By matching new hire data with child support case participant information, states can locate noncustodial parents, establish paternity, and enforce child support orders.
Paperwork Completion and Payroll Processing
The hire date typically aligns with the day an employee completes their new hire paperwork (Symmetry Software, 2018). This paperwork typically includes forms such as W-4, I-9, state forms, and other payroll withholding forms. Until this paperwork is completed, the employee cannot be added to payroll, and consequently, cannot receive payment for their work.
Distinction Between Hire Date and Start Date
While the hire date signifies the completion of paperwork, the start date represents the day an employee actually begins working and becomes eligible for payment (Symmetry Software, 2018). These dates may coincide or differ depending on the company’s onboarding process.
Benefits and Time Off
The start date holds significance in determining an employee’s eligibility for benefits such as paid time off and health insurance (Symmetry Software, 2018). These benefits are typically offered after a certain period of time has elapsed since the start date.
Conclusion
Date of Hire serves as a pivotal marker in the employment relationship, triggering a series of administrative processes, payroll actions, and legal obligations. New Hire Reporting, in particular, plays a vital role in enforcing child support orders and ensuring that children receive the financial support they are entitled to.
References:
- Administration for Children and Families. (2022, December 21). New Hire Reporting – Answers to Employer Questions. Retrieved from https://www.acf.hhs.gov/css/faq/new-hire-reporting-answers-employer-questions
- Law Insider. (n.d.). Date of Hiring Definition. Retrieved from https://www.lawinsider.com/dictionary/date-of-hiring
- Symmetry Software. (2018, April 11). A Closer Look at Hire Date vs. Start Date. Retrieved from https://www.symmetry.com/payroll-tax-insights/a-closer-look-at-hire-date-vs.-start-date
FAQs
What is the definition of Date of Hire?
Date of Hire refers to the day an individual commences performing services for wages as an employee. It marks the official start of an employment relationship and has implications for payroll processing, employee benefits, and legal compliance.
What is New Hire Reporting, and why is it important?
New Hire Reporting is a legal obligation for employers to report information on newly hired employees to a designated state agency within a specified timeframe. This reporting requirement plays a crucial role in child support enforcement efforts by helping to locate noncustodial parents and enforce child support orders.
When does the Hire Date typically occur?
The Hire Date typically aligns with the day an employee completes their new hire paperwork, which includes forms such as W-4, I-9, state forms, and other payroll withholding forms.
What is the difference between Hire Date and Start Date?
Hire Date signifies the completion of paperwork, while Start Date represents the day an employee actually begins working and becomes eligible for payment. These dates may coincide or differ depending on the company’s onboarding process.
How does the Start Date impact employee benefits?
The Start Date holds significance in determining an employee’s eligibility for benefits such as paid time off and health insurance. These benefits are typically offered after a certain period of time has elapsed since the Start Date.
Are there any penalties for employers who fail to comply with New Hire Reporting requirements?
States have the option to impose civil monetary penalties for noncompliance. Federal law mandates that if a state chooses to impose a penalty, the fine may not exceed $25 per newly hired employee.
How can employers submit New Hire reports?
Employers can submit New Hire reports to the State Directory of New Hires in the state where the employee works. Reporting methods include first-class mail, magnetic tapes, electronic transmission, fax, email, phone, and website submissions.
What information must employers include in New Hire reports?
Federal law requires employers to report the following seven data elements: employee’s name, address, Social Security number, date of hire, employer’s name, employer’s address, and Federal Employer Identification Number (FEIN). Some states may require additional data.