• Forms
• NCAS
• CAFR Year-End
• CMCS/Central Compliance
• E-Commerce/ SECP
• Central Payroll
• Statewide Foriegn Nationals Compliance Program
• Policies
• Account Classification
• Accounts Receivable
• Capital Assets
• Cash Management
• Central Payroll (Universities)
• Electronic Commerce
• Federal and State Compliance
• Foreign Nationals
• Human Resources Accounting
• Internal Controls
• Payment
• Procurement Card
• Records Retention and Reports Retention
• Revenues and Expenditures
• State Financial Reporting
• Tax Compliance
• Uniform North Carolina Accounting System

New Hire Reporting Requirements

House Bill 301 is a mandatory State adaptation of the Welfare Reform Reconciliation Act of 1996 (HR. 3734).  This act created a federal new hire reporting system to help locate employees who are subject to a child support withholding orders, and requires adoption of uniform state laws regarding interstate enforcement of child support orders.  This act requires States to establish a Directory of New Hires by October 1, 1997.  This state directories will report new hire information they receive to a National Directory of New Hires.

The General Assembly passed HB 301 (G.S.110-129.2) which adopts this federal law.  This law mandates that each employer report the name, address, and social security number of new hires within 20 days of hiring, unless the transmission is made electronically, then it must be made twice a month.  In addition, the employer must report his name, address, and federal EIN.  This can be accomplished by using the Form W-4 or its equivalent containing the required information.  This report can be transmitted by first class mail, electronically or magnetically.  Presently the W-4 does not contain the employer information.

Within 5 business days of receiving this information from employers, the State Directory of New Hires must enter this information into a State Database.

Within 2 business days of the date the information was entered into the Directory, the Department will transmit notice to the employer of the newly hired employee directing the employer to withhold from the employees income an amount equal to the monthly or other periodic child support, including past due support.

Within 3 business days of entering the information into the State database, the State directory will report the information that they have received to the National Database.

Amounts withheld by employers must be sent within 7 business days of pay day to the State central collection and disbursing agency, which is required to be established in each state under the provisions of the Welfare Reform Act of 1996.

Employers must withhold according to the terms directed in the notice from the court or agency, but if a withholding order is received from another state, the employer must comply with the state law in the employee?s work state in determining:

1. the employer?s administrative fee for processing the order;
2. the maximum amount that can be withheld;
3. the time periods for implementing the withholding order and paying over amounts withheld;
4. the priorities for withholding under multiple child support orders; and
5. any terms or conditions not specified in the order.

Employers that do not withhold are not only liable for the amount that they failed to withhold, but are also subject to a state fine as well.

In addition to the above, states are allowed to use this information to reduce fraud and abuse in unemployment compensation, worker?s compensation and other government benefit programs.