MHIC NASCLA Contractors Practice Exam

Employers are required to report new employees to which entity?

1. Internal Revenue Service

2. State Directory of New Hires

3. Department of Labor

4. Occupational Safety and Health Administration

The correct answer is: State Directory of New Hires

Employers are required to report new employees to the State Directory of New Hires. This requirement is part of the federal law mandates under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, which aims to facilitate the enforcement of child support orders and prevent fraud in welfare programs. Reporting to the State Directory of New Hires helps state agencies track employment and income information, allowing for effective management of child support obligations and ensuring that unemployment insurance benefits are distributed appropriately. Each state has its own reporting procedures and deadlines, typically requiring employers to report new hires within a specific timeframe after they are employed. While other entities such as the Internal Revenue Service, Department of Labor, and Occupational Safety and Health Administration are significant in their respective areas, they do not serve the primary purpose of tracking new employment for child support and welfare compliance as the State Directory of New Hires does. Thus, reporting to this directory is essential for both state and federal enforcement actions.