MHIC NASCLA Contractors Practice Exam

What is the purpose of New Hire Reporting?

1. To collect taxes

2. To monitor workplace harassment

3. To enforce labor laws

4. To detect benefits fraud and enforce child support orders

The correct answer is: To detect benefits fraud and enforce child support orders

The purpose of New Hire Reporting is to detect benefits fraud and enforce child support orders. This reporting system is designed to gather information about new employees, which helps various agencies track individuals who may have outstanding child support obligations or who might be receiving benefits fraudulently. By collecting information on new hires, state agencies can ensure that parents are meeting their child support responsibilities and can take appropriate action if they are not. Additionally, having accurate records helps to identify any discrepancies in benefit applications, thereby aiding in the prevention of fraud. While reporting also has implications related to labor law enforcement and workplace monitoring, its primary function revolves around supporting child support enforcement and maintaining the integrity of public benefits systems.