New Hire Reporting - What It Is and How It Works
Effective October 1, 1998, state and federal laws require all employers to report each new and rehired employee to a state Directory of New Hires (20 Illinois Compiled Statute 1020, and section 313, Personal Responsibility Work Opportunity Reconciliation Act of 1996, 42 U.S.C. 653A). Congress and the states adopted these laws to increase child support collections on both state and national levels and reduce fraudulent unemployment and worker's compensation payments.In Illinois, employers submit information on newly hired or rehired employees to the Illinois Department of Employment Security (IDES), New Hire Directory. IDES then forwards the data to the Federal Office of Child Support Enforcement (OCSE), where it becomes a part of the National Directory of New Hires.
IDES compares the information employers submit against current state child support files. When a match occurs, the Illinois Department of Healthcare and Family Services, Division of Child Support Services, issues an Order/Notice to Withhold Income for Child Support. Likewise, the National Directory of New Hires compares the data received from one state with child support information from other states and when a match occurs, provides the information to the appropriate state agency. With new hire reporting, state child support enforcement agencies have the ability to promptly issue an Order/Notice to Withhold Income for Child Support - the most effective means of collecting child support.