Employers

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New Hires

Every name matters

All employers are required to report each newly hired or recalled employee to Workforce Alabama.

Reporting new employees

All employers are required to report each newly hired or recalled employee to Workforce Alabama within seven days from the date of hire or reemployment. Employers who fail to do so may be fined up to $25 per violation. (Employers reporting electronically may transmit twice monthly, no less than 12 days or more than 16 days apart.)

Requirements

All reports require the employee’s name, address, social security number, first day of work, and whether the employee was newly hired or recalled to work. Also needed is the employer’s federal employer identification number (FEIN) and employer account number (EAN) used for quarterly wage reports for Alabama employers. Only the FEIN is required for employers outside the state of Alabama.

A newly hired employee is one who:

  • Has not previously been employed by the employer
  • Was previously employed by the employer but has been separated from employment for at least 60 consecutive days

Note: Employers with five or more employees must make reports online through Workforce Alabama’s New Hire Center. Employers with less than five employees may report online or send copies of W-4s to the New Hire unit. W-4s must have additional notations showing the date the employee began work and whether the employee was a new hire or recall.

Benefits
  • Reduced Unemployment Compensation (UC) taxes where benefits would have otherwise been charged against an employer’s experience rating account.
  • Reduced UC shared costs, which affect all tax-rated employers.
  • Reduced outstanding overpayments of UC benefits and their adverse effect on the Unemployment Insurance Benefit Payment Audit.
  • Reduced unemployment benefits paid to workers who refuse jobs.
  • Reduced cost of Temporary Assistance for Needy Families.
  • Reduced food stamp, Medicaid and Workers’ Compensation costs.
Getting started with reporting

The new-hire reporting system allows employers to report individuals who refuse work while receiving unemployment compensation. A claimant can be denied benefits for failure to accept suitable employment.

File a report online

Report new hires online by uploading a fixed-length or CSV file through our online form. An additional file format may soon be available.

SSN Verification

The Social Security Administration now has an online option for verifying Social Security Numbers (SSN). Once registered with the online service, you can receive immediate verification of an SSN. Using this tool at the time of hire as part of the intake process will ensure the correct wage information is provided.

Contact & F.A.Q

Alabama Department of Workforce
New-Hire Unit
50 North Ripley Street
Montgomery, AL 36130

Phone: (334) 206-6020
Fax: (334) 206-6020
Email: newhire@labor.alabama.gov

Where do we send New-Hire Reports?

All New-Hire W-4 forms should be mailed or faxed to:

Alabama Department of Workforce
New-Hire Unit
50 North Ripley Street
Montgomery, AL 36130

Should we start reporting now?

Yes. All Alabama employers with a federal employer identification number (FEIN) and an employer account number, out of state employers with a FEIN and Alabama employees should start reporting immediately after registering with the New Hire Unit.

Does Alabama require the reporting of independent contractors through new hire?

No, Alabama follows Federal law, and does not require the reporting of Independent contractors as new hires.

How does a multi-state employer designate one (1) state to report all new hires?

If a multi-state employer designates one (1) state to report all new hires, the employer must notify the Secretary of Health and Human Services, in writing, as to which state the employer has designated to receive all of their new hire information.

The address of the Secretary is:

Department of Health and Human Services
Administration for Children and Families
Office of Child Support Enforcement
Multistate Employer Notification
PO Box 509
Randallstown, MD 21133
https://ocsp.acf.hhs.gov/OCSE/

For assistance in completing this form, call the Multistate Employer Help Desk at 410-277-9470
FAX 410-277-9325
(8:00a.m. – 5:00p.m. ET).

How do multi-state employers report new hires?

Multi-state employers have two options: report all new hires to a single state, chosen by the employer, in which the employer has employees, or report new hires to the respective states in which employees are working. If an employer elects to report all new hires to a single state other than Alabama, the data cannot be used by Alabama to detect and/or reduce fraud associated with Mining and Reclamation. The data will only be used by the National New Hire Directory to locate non-custodial parents who are obligated to pay court-ordered child support. Also, employers electing to report all new hires for all states to Alabama must report electronically via the internet at labor.alabama.gov.

What methods of reporting new hires are available to employers?

Employers have two methods of reporting new hires, depending on the number of employees they have.

  1. Effective May 1, 2008, the Alabama Department of Labor requires employers with 5 or more employees to report their new hires electronically via the internet. Employers reporting by internet upload are only required to report new hires twice a month [not less than twelve (12) days and not more than sixteen (16) days apart]. For internet reporting, please use this website by clicking here. All third party submissions of new-hire data must be reported electronically, via the internet.
  2. Employers with less than 5 employees can mail or fax a copy of the employee’s W-4 form. All W-4’s must include the following data: employee’s name, address, and social security number; first day of work; and, whether newly hired or recalled to work. Also required are the employer’s Federal Employment Identification Number (FEIN), name, and address. If reporting by this method, employers with less than 5 employees are required to report new hires within seven (7) days of the first day of work. Mail W-4’s to:

Alabama Department of Workforce,
New Hire Unit
50 North Ripley Street
Montgomery, AL 36130

Note: The New Hire report-of-hire card, NH-1, is no longer accepted.

Which employees have to be reported?

All employees who are newly hired or recalled to work must be reported. An employee is defined as “an individual in the employ of another who performs a service for hire and receives wages.” This includes temporary, seasonal and part-time employees. Individuals refusing work may also be reported, but this information is optional. Reporting job refusals will increase the labor pool, disqualify UC and/or Temporary Assistance for Needy Families (TANF) recipients if they refuse work for which they are qualified, and reduce the drain on UC Trust Fund.

Are there any employers that are exempt from the New-Hire Program?

No. This program is mandatory for all employers. An employer is defined as “a person or entity, including a state or local government entity or labor organization that employs an individual to perform a service for hire and pays wages directly to the individual.” This includes all religious and nonprofit organizations.

When did the Alabama New-Hire Program begin?

The New-Hire Program became mandatory October 1, 1997, after a voluntary program began in 1994.

Are there examples for uploading New-Hire Tab Delimited files?

Employers, click the following link for examples of New-Hire Tab Delimited files for uploading.