This needs your Attention!

October 9, 1997
The following information is being provided to all SouthWestern Association members from Lynne Kaiser of the association's law firm, Seigfreid,. Bingham, Levy, Selzer and Gee. This material will be distributed to Association members on the 9^th, 10^th, and 11^th of October.

As you can see by this memo, the law went into effect July 1, 1997, and therefore, you must comply with the law by notifying the appropriate state agency of any new hires since July 1 immediately!

New Hire Reporting Requirement

The recently enacted welfare reform legislation, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), requires all employers to report certain information on their newly-hired employees to a designated state agency. The purpose of this letter is to provide you with information regarding this requirement in case you have not already received such information from the state child support enforcement office. Under this new law, employers must report newly hired and/or rehired employees to the state Directory of New Hires within twenty (20) calendar days of hire. The primary purpose of this reporting requirement is to aid in the enforcement of child support obligations. Failure to submit the required information on an employee may result in a civil fine of not more than $25 per newly-hired employee. (If there is a conspiracy between the employer and the employee not to report, the penalty may not exceed $500 per newly hired employee).

Under the law, employers are now required to send a copy of the federal W-4 form or an equivalent form containing the following information to the appropriate state agency:

• Employee's name, address and Social Security number
• Employer's name, address and federal employer identification number
• Employee's date of hire or the date the employee signed the W-4 form

For purposes of New Hire reporting requirements, the definition of "employer" includes any employer who is required to give an individual a W-2 form. The "date of hire" is considered to be the first day services are performed for wages by an individual. Employers must submit a New Hire report even on newly-hired individuals who quit before the report is due. Further, if an employee is laid off and then re-hired, the employer must report the individual as a New Hire if the employee returning to work is required to complete a new W-4 form. If, however, the returning employee had not been formally terminated or removed from payroll records, there is no need to report that individual as a New Hire.

Employers in Missouri may use one of the following reporting methods:

1. Mail the W-4 copy or equivalent form to the Missouri Department of Revenue, P.O. Box 3340, Jefferson City, MO 65105-3340, Attn: New Hires Directory
2. Fax copies to (573) 526-8079; or
3. Electronic filing - - two monthly transmissions made not less than 12 nor more than 16 days apart (See attached information provided by the Missouri Division of Child Support Enforcement)

For more information regarding the New Hire reporting requirement in Missouri, you can call (800) 859-7999.

Employers in Kansas may use one of the following reporting methods:

1. Mail the W-4 copy or equivalent form to: The Kansas Department of Human Resources, Box 3510, Topeka, Kansas 66601-3510, Attn: New Hires Directory;
2. Fax copies to (888)219-7798; or
3. Electronic filing (The Kansas Department of Human Resources informed us that they would soon be sending out a mass mailing to employers which will provide more specific details regarding the state's New Hire Reporting program, including electronic filing information)

For more information regarding the New Hire reporting requirement in Kansas, you can call (913)296-3237.

Employers in Arkansas may use one of the following reporting methods:

1. Mail the W-4 copy or equivalent form to the Arkansas New Hire Reporting Center, P.O. Box 2540, Little Rock, Arkansas 72203; or
2. Fax copies to (501) 376-2682 or (800) 259-3562

For more information regarding the New Hire reporting requirement in Arkansas, you can call (800) 259-2095.

Employers in Nebraska may use the following reporting method:

1. Mail the W-4 copy or equivalent form to the Nebraska State Directory of New Hires, P.O. Box 144103, Austin, TX 78714-4013.
2. A fax number is not yet available for Nebraska, but a mailing to all employers is planned by the state with fax and electronic filing information.

For more information regarding the New Hire reporting requirement in Nebraska, you can call (888) 256-0293, fax 866-808-2007 or go to www.ne-newhire.com .

If you are an Employer with employees in more than one state you have two reporting options. You may report newly-hired employees to the state in which they are working or, alternatively, you may select one of these states to which to report all of your New Hires. If one state is chosen, your New Hire reports must be submitted by magnetic tape or electronically. Also, you must notify the Secretary of the U.S. Department of Health and Human Services (DHHS) of the state which you have chosen. Procedures to accomplish such selection and notification are currently being developed by the DHHS.

Please note that although these reporting requirements have been effective in the state of Missouri since July 1, 1997, you can avoid any penalties by immediately reporting all employees you have hired in Missouri since July 1st In Kansas, Arkansas and Nebraska, the new reporting requirements became effective on October 1, 1997.

Contact Jeff Flora with your comments and suggestions.