Indiana New Hire Reporting Requirements: What Employers Need to Know

Employers in Indiana have many compliance responsibilities, and one requirement that is frequently overlooked is new hire reporting. While the process is relatively simple, failing to comply can result in penalties and unnecessary administrative headaches.

For home care agencies and other employers that hire frequently, understanding Indiana's New Hire Reporting Program is essential.

What Is New Hire Reporting?

Both federal and Indiana law require employers to report newly hired and rehired employees to the Indiana New Hire Reporting Center. The program was established to assist with child support enforcement, reduce unemployment insurance fraud, and improve the accuracy of state employment records.

Employers must report all newly hired and rehired employees, regardless of whether they work full-time, part-time, temporary, or seasonal positions.

A "new hire" generally includes:

• An employee who has never worked for your organization before

• An employee returning to work after a separation from employment

• Employees rehired after being off payroll for a significant period

When Must Employers Report?

Indiana employers must report newly hired employees within 20 days of the employee's hire date. For employers that submit reports electronically in multiple batches per month, reporting must generally occur at least twice monthly, with submissions not more than 16 days apart.

Timely reporting helps ensure compliance and allows state agencies to maintain accurate employment records.

What Information Must Be Reported?

Employers are typically required to provide:

• Employee name

• Employee address

• Employee Social Security number

• Date of hire

• Employer name

• Employer address

• Federal Employer Identification Number (FEIN)

  
  

Most employers can submit this information electronically through Indiana's New Hire Reporting system.

Can Payroll Companies Handle This?

Yes. Many payroll processing companies and human resource platforms automatically submit new hire reports on behalf of employers.

Popular payroll providers often include new hire reporting as part of their compliance services. However, employers should never assume reporting is being completed automatically.

Business owners should confirm with their payroll provider that:

• New hire reporting services are included

• Indiana reporting requirements are being met

• Reports are being submitted within required timeframes

Ultimately, the employer remains responsible for compliance even when reporting duties are delegated to a third-party vendor.

What Are the Penalties for Noncompliance?

Indiana law authorizes penalties for employers who fail to comply with new hire reporting requirements.

Employers may face civil penalties for:

• Failing to report newly hired employees

• Submitting reports late

• Intentionally failing to provide required information

Penalties can increase when there is evidence of a conspiracy between an employer and employee to avoid reporting requirements.

While many violations are resolved through education and compliance efforts, repeated failures can expose employers to unnecessary regulatory scrutiny and financial penalties.

Did You Know Employers Can Also Report Terminations?

Many employers are familiar with new hire reporting but are unaware that Indiana also allows employers to report employee terminations.

Termination reporting can help state agencies maintain more accurate employment records and may assist in preventing improper benefit payments. Employers can voluntarily report resignations, discharges, layoffs and other employment separations.

For organizations with high turnover rates, termination reporting can be a useful administrative tool.

Important: Termination Reporting Does NOT Replace Unemployment Claim Responses

This is one of the most common misunderstandings among employers.

Submitting information through Indiana's Terminations Report system does not satisfy an employer's obligations when a former employee files for unemployment insurance benefits.

Employers should understand that information entered on the Terminations Report does not fulfill an employer's obligations to report information to the Indiana Department of Workforce Development (DWD) for claimants who have filed for unemployment insurance benefits.

If a former employee files for unemployment benefits and an employer wishes to protest the claim, provide separation information, contest eligibility or submit supporting documentation, then the employer must respond directly through the Indiana Department of Workforce Development's unemployment insurance process.

Failure to respond through DWD's established procedures could result in benefits being awarded without consideration of the employer's position.

In short, termination reporting and unemployment claim responses are two separate processes that serve different purposes.

Final Thoughts

Indiana's New Hire Reporting Program is a straightforward compliance requirement, but it remains an important one. Home care agencies and other employers can reduce risk by implementing strong onboarding procedures, leveraging payroll providers when appropriate, and understanding the differences between new hire reporting, termination reporting, and unemployment insurance claim responses.

A few minutes of compliance on the front end can prevent penalties, reduce administrative burdens, and help ensure your organization remains in good standing with state reporting requirements.