Q: What is the definition of “employer” for new hire reporting purposes?

A: Federal legislation states that an “employer” for new hire reporting purposes is the same as for the federal income tax purposes (as defined by Section 3401(d) of the Internal Revenue Code of 1986) and includes any government entity or labor organization.  At a minimum, in any case where you as an employer are required to give an individual a W-4 form, you must meet the new hire reporting requirements.

Q: What is the “date of hire” considered to be? 

A: The “date of hire” is the first day services are performed for wages by an individual for you.

Q: What if I hire an employee but they don’t actually start working within the 20 days of hiring them?

A: In such case you would delay reporting until the employee actually begins working.  The report of hire must be made within 20 days of the first day services are actually performed.

Q: If I layoff and then re-hire an employee, or an employee returns after a leave of absence, do I need to send in another New Hire report?

A: If an employee returning to work is required to complete a W-4 form, you MUST report the individual as a new hire to the VT Department of Labor (VDOL) If, however, the returning employee had not been formally terminated or removed from payroll records, there is no need to report that individual. 

Q: As a temporary employment agency, must we report as a new hire each individual placed by our agency?

A: If your agency is paying wages to the individual, you MUST submit a new hire report.  The individual needs to be reported only once, unless there is a break in service from your agency and a new W-4 form is required.  If your agency simply refers individuals for employment and does not pay salaries, new hire reports are not necessary from you.

Q: Do I need to submit a new hire report for independent contractors performing services for me?

A: Federal policy states that if the work being performed is based on a contract rather than an employer/employee relationship, you are not required to submit a new hire report. However, the contractor is responsible for reporting his/her employees.