PRWORA and Employers

INCREASING FINANCIAL SUPPORT FOR OUR NATION'S CHILDREN...




The Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996
(PRWORA)

ALL EMPLOYERS 
TO REPORT 
ALL NEW HIRES

The Personal Responsibility and Work Opportunity Reconciliation Act 
(PRWORA) of 1996 was signed into law on August 22, 1996.  

 This legislation provides for a much strengthened Child Support 
Enforcement Program. 

 The Child Support Program benefits children and families by locating 
noncustodial parents, establishing paternity when necessary, and 
establishing and enforcing child support orders.  

One key provision of the PRWORA legislation of importance to 
employers is that all States have a program providing information 
about the newly hired.  This new hire reporting program provides 
timely information so that child support can be more effectively 
enforced.  

 Employers will be required to report certain information on their 
newly hired employees to a designated State agency.  

 States will match new hire reports against child support records to 
locate parents, establish an order, or enforce an existing order.  
State agencies operating Employment Security and Workers' 
Compensation Programs will also have access to the new-hire 
information to detect and prevent erroneous benefit payments.

THE MINIMUM FEDERAL 
STANDARDS ESTABLISHED IN THE PRWORA ARE:
  
 All employers must report all new-hires.

 The new hire report must contain the name, address and social 
security number of the employee; and the name, address and Federal 
Employer Identification Number of the employer.  It is extremely 
important that these reports be both accurate and legible, to ensure 
successful matching and contact once a match is made.

 New hires must be reported to the State within 20 days of the date 
of hire.  If an employer reports electronically or by magnetic media, 
the employer must report by two monthly transmissions not less than 
12 nor more than 16 days apart.  States may establish more stringent 
reporting requirements.

 If an employer has employees in more than one State and reports 
either magnetically or electronically, that employer may designate 
one State (in which he/she has employees) to which all new hires may 
be reported.  The employer must identify to the federal government 
the State which has been selected for reporting.  A procedure to 
accomplish such selection will be provided to you at a later date.

 The new hire report shall be made on a W-4 form, or an equivalent 
form at the employer's option.

 New hire reports may be transmitted by first-class mail, by magnetic 
media, or electronically.

STATES WHICH 
CURRENTLY HAVE
NEW HIRE LEGISLATION

Nearly half of the States already have new hire reporting 
legislation.  States already operating new hire programs must conform 
their requirements to the minimum Federal requirements no later than 
October 1, 1998.  

 If you live in a State which currently has new hire reporting, your 
State will notify you about changes in your procedures, if any, and 
when those changes will go into effect.

 States that already have New Hire Reporting Programs:

Alaska
Arizona
California
Connecticut
Florida
Georgia
Hawaii
Iowa
Kentucky 
Maine
Maryland
Massachusetts
Minnesota
Missouri
New York
Ohio
Oklahoma
Oregon
South Carolina
Tennessee 
Texas
Vermont
Virginia
Washington
West Virginia

STATES WITHOUT
NEW HIRE LEGISLATION
BEFORE AUGUST 22, 1996

Those States not listed, as well as Guam, Puerto Rico, U.S. Virgin 
Islands and the District of Columbia, must have new hire programs in 
place no later than October 1, 1997.  Again, your State will notify 
you regarding what your specific State requirements are and when they 
will go into effect. 

INTERSTATE CASES
  
The Federal Office of Child Support Enforcement (OCSE) estimates that 
over 30% of child support cases involve parents who do not live in 
the same State as their children.  Under PRWORA, the designated state 
agency will be required to transmit the new hire reports which they 
receive from employers to the Federal OCSE for entry into a National 
Directory of New Hires.  Federal employers will report their new 
hires directly to the National Directory.  This directory will 
operate to provide timely locate information to the States regarding 
child support cases.

CENTRALIZED COLLECTION OF WITHHELD INCOME

The PRWORA legislation also requires that each State establish, by 
October 1, 1998, a State Disbursement Unit for the collection and 
distribution of all child support payments.  Employers will be given 
one location within each State where all income withholding issued by 
a child support agency and all other orders issued after January 1, 
1994, with certain exceptions, are to be sent.

THANK YOU
With your help, millions of children have received the child support 
they need and deserve.  The people responsible for operating the 
Child Support Enforcement Program thank you for the critical role you 
play in making this program successful.  Almost two out of every 
three dollars collected by child support agencies come from income 
withholding.  This amounted to over $6 billion in 1995.  Without your 
help, effective child support enforcement is impossible, and millions 
of our nation's children would suffer the consequences. With an 
effective new hire reporting system, millions more children will 
benefit.
 
U.S. Department of Health and Human Services
Administration for Children and Families
Office of Child Support Enforcement
November 1996