Toast Payroll: Get Started With New Hire Reporting

In this Article:

• New Hire Reporting Overview
• New Hires Without Social Security Numbers (SSNs)
• What's Included in New Hire Reports

New Hire Reporting Overview

A New Hire Report is a federally-mandated report that relays employee and employer-related information to the appropriate state agencies. The information on this report comprises the National Directory of New Hires. Among other things, the Office of Child Support Enforcement (OCSE) uses this database to locate parents in child support cases. A potential benefit to employers is the reduction and prevention of fraudulent unemployment and workers' compensation payments. Learn more from the OCSE.

Toast Payroll files this report twice a month on your behalf. As a side note, employers who do not report new hires may face penalties. Federal law mandates that state penalties for failure to report may not exceed $25 per new hire, unless there is a conspiracy between the employer and employee, in which case the penalty may not exceed $500 per new hire. Non-monetary civil penalties may also be imposed.

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New Hires Without Social Security Numbers (SSNs)

Importantly, if an employee does not have an SSN, Toast Payroll will not include this employee in the report. Individual Taxpayer Identification Numbers (ITINs) and Permanent Resident Alien (green card) numbers cannot replace an SSN in this case. Review  to add SSNs or verify the SSNs in your Toast Payroll database.

If a new hire doesn't have an SSN or is a non-US resident (nonresident noncitizen) visa employee, they can complete call 1-800-772-1213, or visit a local Social Security office to request an SSN. Employers have 20 calendar days to report the new hire from the date the individual receives their SSN. Learn more .
 

What's Included in New Hire Reports

According to the , federal law stipulates that 7 different elements must be included for each new hire in New Hire Reports:

• Employee name
• Employee address
• Employee SSN
• Date of hire
• Employer name
• Employer address
• Federal Employer Identification Number (FEIN)

Some states may have additional requirements and those can be found . Toast Payroll submits reports to all 50 states plus DC on your behalf based on information in the Toast Payroll system. As a reminder, employees without SSNs are not included on this report.
 

This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice.  Please contact an attorney or other professional for advice.