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Accounting & Auditing
New Hire Reporting in Texas to Become More Specific
By: Julia Appleton
Julia Appleton
Accounting Outsourcing Services
Houston
713.499.4600
New federal legislation requires employers to include the date of service on all new hire reports effective June 8, 2011. All new hires are required to be reported within 20 days, according to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The information is shared between state and federal governmental agencies. Penalties are assessed for not reporting new hires in a timely manner.
What Information Must Be Remitted?
A properly completed new hire report should contain the following:
- Company name, address and Federal Tax ID number
- Employee’s name, Social Security number and address
- Date of service—the first day work is performed
Texas Requirements & Reporting Standards
In Texas, the report is made to the Texas Employer New Hire Reporting Operation Center. Online reporting is available at the Attorney General of Texas website. Businesses also can call 800.850.6442 for additional reporting methods and instruction.
The Texas Workforce Commission also has useful information for new hire reporting on its website.
Texas employers that knowingly fail to report new hires are subject to a penalty of $25 per unreported employee, plus a $500 penalty for conspiring with the newly hired employee not to report the employment within the proper period.
Rules and regulations related to these issues can be very complex. If you need additional explanation, please contact your BKD advisor or Gail Duke at gduke@bkd.com.
Tax professionals practicing before the IRS must adhere to certain professional standards prescribed by the Department of Treasury and the IRS. These standards require BKD to include the following statement in certain written federal tax advice: This advice is not intended or written to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed.
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