New Hire Report | Meaning and Definition

What is the New Hire Report?

A new hire report, as the term suggests, is a report about a newly hired employee. In some countries, like the United States of America, when an employer hires a new employee, they have to send in a new hire report with basic details about the new employee to the state in which the employee is hired. This is done because, in the United States, individuals unable to get hired are paid an unemployment allowance which enables them to live a normal lifestyle while trying to find employment. This allowance is paid by the state, and the new hire report is required to avoid any discrepancies and people taking advantage of the welfare scheme.

The new hire report is to be submitted in two conditions:

  • When a new employee is hired in a company for the first time.
  • If an employee who has not worked for a firm for more than 60 consecutive days rejoins the company.

Is filing new hire reports compulsory?

Yes. Under the laws in the United States, specifically, the Personal Responsibility and Work Opportunity Reconciliation Act, 1996, all employers must send in the new hire report within 20 days of the new employees joining date or the date from which they start drawing a salary. While this is a general standard, some states can also have tighter deadlines for sending in the new hire reports. If an employer fails to send in the new hire report, they can be fined for it, as several employers have been previously whenever they failed to send in the new hire report.