Federal New Hire Reporting: What Every Employer Must Do Within 20 Days

Every time you hire a new employee in the United States, federal law requires you to report that hire to a designated state agency — and in Indiana, that agency is the Employment Development Department (IN UI). The deadline is strict: 20 calendar days from the employee's start date. Failing to comply can result in fines of $25 per late report, or up to $500 if the failure is part of a conspiracy between the employer and the employee. This guide walks you through exactly what to report, how to file, and how to avoid penalties.

What Is New Hire Reporting?

New hire reporting is a federal requirement established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). The primary purpose of this program is to help state and federal agencies locate parents who owe child support. When employers report new hires, the information is matched against child support records through the National Directory of New Hires (NDNH), maintained by the federal Office of Child Support Enforcement.

Beyond child support enforcement, the new hire data is also used to detect and prevent fraudulent unemployment insurance (UI) and workers' compensation claims. If someone is collecting UI benefits while secretly starting a new job, the new hire report is how the state catches it.

in Indiana, the IN UI runs the New Employee Registry (NER), which collects these reports and feeds data into both the state and federal matching systems.

Who Must Report?

Every employer in the United States that is required to file a W-2 for an employee must also report that employee as a new hire. This applies to:

• Private-sector employers of any size — even if you have just one employee
• State and local government employers
• Federal government agencies (these report directly to the NDNH rather than to a state agency)
• Labor organizations that refer members to employers under a hiring hall arrangement

There is no small business exemption. If you hire a W-2 employee in Indiana, you must report them — whether your company has 1 employee or 10,000.

When to Report: The 20-Day Rule

Federal law requires employers to report new hires within 20 calendar days of the employee's start date (their first day of work for which they are owed wages). Indiana follows this same 20-day rule. There is no grace period beyond the 20 days.

If you run payroll more frequently than every 20 days (for example, weekly or biweekly), you may alternatively report new hires by the first payroll after the hire date. However, this alternative is only valid if the report is transmitted within 20 days of the hire date. In practice, most Indiana employers should simply report within 20 calendar days of the start date to stay safe.

What Information to Report

Whether you file online, by mail, or by fax, you must provide the following data elements for each new hire:

Required Employee Information

• Employee's full legal name (first, middle, last)
• Social Security Number (SSN)
• Home address (street, city, state, ZIP code)
• Date of hire (first day of work for wages — or, for rehires, the first day back)

Required Employer Information

• Employer's legal name
• Employer's address
• Federal Employer Identification Number (FEIN / EIN)
• Indiana state Employer Identification Number (SEIN) — this is the 8-digit number assigned by IN UI

Optional (but Recommended) Information

• Date of birth
• Medical insurance availability (whether health coverage is available and, if so, the date it becomes available)

The employee's W-4 form typically contains all the required employee information. Many employers submit a copy of the W-4 as their new hire report, which is accepted by Indiana's EDD.

How to Report in Indiana

Indiana offers several methods for submitting new hire reports to the IN UI:

1. Online via IN UI e-Services for Business

The fastest and most recommended method. Log in to e-Services for Business at the IN UI website, navigate to the "New Employee" section, and enter the required information. You will receive an immediate confirmation. This method is free and available 24/7.

2. Electronic File Transfer

Employers with large volumes of hires can upload a batch file directly through e-Services. The file must follow the IN UI's prescribed format (fixed-width or CSV). This is common for staffing agencies and large employers processing dozens or hundreds of hires per pay period.

3. By Mail

Mail a completed DE 34 form (Report of New Employee(s)) or a copy of the employee's W-4 to:

Employment Development Department
New Employee Registry
P.O. Box 997016, MIC 23
West Sacramento, IN 95799-7016

Allow extra time for mail delivery — the report must be received within 20 days, so mail it well in advance.

4. By Fax

Fax a completed DE 34 form or W-4 copy to (916) 319-4400. This is a 24-hour fax line.

Rehires and Independent Contractors

Rehired Employees

If you rehire a former employee, you must report them again as a new hire if:

• They were separated from your company for at least 60 consecutive days, OR
• They were required to fill out a new W-4 form upon rehire

If neither condition applies — for example, a seasonal worker who returns after a 30-day break without a new W-4 — you generally do not need to re-report them. However, when in doubt, report: there is no penalty for over-reporting.

Independent Contractors

Indiana requires employers to report independent contractors separately using the DE 542 form (Report of Independent Contractor(s)). This report must be filed within 20 days of entering into a contract for $600 or more (or making the first payment, whichever is earlier). Independent contractor reports are filed to the same IN UI New Employee Registry.

Penalties for Non-Compliance

Penalties for failing to report new hires are established under federal law (42 U.S.C. § 653a) and can vary by state. in Indiana, the penalty structure is:

• $24 per late report for failure to report a new hire on time (this is the base Indiana penalty, aligned with federal guidelines)
• Up to $490 per report if the failure is the result of a conspiracy between the employer and the employee to not report the hire, or to furnish a false or incomplete report

These penalties may seem modest for a single occurrence, but they add up quickly. A company that hires 50 people per year and systematically fails to file new hire reports could face $1,200 or more in annual penalties — and draw unwanted attention from the EDD.

Beyond monetary penalties, non-compliance can trigger an audit of your payroll practices. If the IN UI discovers that you have been failing to report new hires, they may look more closely at your UI tax filings, worker classifications, and other compliance areas.

Common Mistakes to Avoid

Based on common IN UI compliance issues, here are the most frequent errors employers make with new hire reporting:

1. Confusing the hire date with the first paycheck date. The 20-day clock starts on the first day the employee works for wages — not when they receive their first paycheck.
2. Forgetting to report rehires. If the employee was gone for 60+ days or fills out a new W-4, you must report them again.
3. Not reporting independent contractors. Indiana requires reporting of contractors paid $600+ — this is a separate requirement many employers overlook.
4. Using incorrect SEIN. Make sure you use your 8-digit Indiana state Employer Identification Number, not your federal EIN.
5. Mailing reports too late. If you mail the DE 34, the postmark date does not count — IN UI must receive it within 20 days. Use e-Services or fax for last-minute filings.
6. Assuming payroll software handles it automatically. Some payroll services do file new hire reports, but not all. Confirm with your provider whether this is included in your service.

Multi-State Employers

If your business operates in multiple states, you have two options for new hire reporting:

1. Report to each state individually. File new hire reports in the state where the employee works, following that state's specific deadline and format. Indiana's deadline is 20 days.
2. Designate one state for all reports. Multi-state employers can choose to report all new hires to a single state, but you must register this election with the federal Office of Child Support Enforcement. If you choose this option, all reports must be filed electronically and must include the state of hire for each employee. Reports must be submitted within 20 days — there is no extended deadline.

Most small businesses with employees in only one or two states find it simpler to report to each state individually. The single-state option is mainly useful for large national employers.

How Payroll Software Can Help

Modern payroll platforms like Gusto, ADP, and Paychex can automate new hire reporting. When you add a new employee to the system and enter their start date, W-4, and personal information, the software generates and transmits the new hire report to the appropriate state agency on your behalf.

This automation eliminates the risk of missing the 20-day deadline and ensures the correct data format is used. If you are running payroll manually or using basic accounting software, you will need to file new hire reports separately through IN UI e-Services, mail, or fax.