The purpose of this chapter is to enhance the enforcement of support obligations by requiring employers to report all new hires or rehires effective October 1, 1997, by establishing a state directory of new hires to be reported to a national directory of new hires, to establish procedures for reporting and penalties for failure to report in accordance with Title IV Part D Section 454 of the Federal Social Security Act (42 USC Section 654) and as more defined in section 15-24-2 of this chapter. This chapter shall be construed liberally to effect this purpose.
15-24-2. General rule on reporting.
On or before the effective date of employment, a new employee must complete a W-4 form as is required by both Rhode Island and Federal law. Internal Revenue Code Section 3402 (8) (2) (A).
Within fourteen (14) days of the employee's effective date of employment or effective date of reinstatement, the employer must submit to the department of administration, division of taxation or its designee, the information as provided in section 15-24-5.
As used in this chapter, unless the context otherwise requires:
(1) "Compensation" means payment owed by the payor of income for:
(a) Labor or services rendered by an employee; or
(b) Benefits including, but not limited to, vacation, holiday, and sick leave, and severance payments which are due an employee under an agreement with the employer or under a policy of the employer.
(2) "Contractor" means a natural person who is eighteen (18) years of age or older, who performs labor in this state to whom a payor of income makes payments which are not subject to withholding and for whom the payor of income is required by the internal revenue service to complete a 1099-MISC form.
(3) "Date of hire" means either of the following:
(a) The first day for which an employee is owed compensation by the payor of income; or
(b) The first day that a contractor performs labor or services for the payor of income.
(4) "Days" means calendar days.
(5) "Department" means the department of administration, division of taxation or its designee.
(6) "Dependent" includes a spouse or child or any other person who is in need of or entitled to support from a person who is declared to be legally liable for the support of that dependent.
(7) "Employee" means a natural person who performs labor in this state and is employed by an employer in this state for compensation and for whom the employer withholds federal or state income tax from the employee's compensation.
(8) "Employer" means a person or entity doing business in this state who engages an employee for compensation and for whom the employer withholds federal or state tax liabilities from the employee's compensation.
(9) "Natural person" means an individual and not a corporation, government, business trust, estate, partnership, or other legal entity, however organized.
(10) "Payor of income" includes both an employer and a person engaged in a trade or business in this state who engages a contractor for compensation.
(11) "W-4 Form" also known as the Employers Withholding Allowance Certificate means the form issued by the Internal Revenue Service of the United States to record the federal income tax withholding allowance available to each employer.
(12) "Rehire" means the first day for which an employee is owed compensation by the payor of income following a termination of employment lasting a minimum of twelve (12) consecutive weeks. Termination of employment does not include temporary separations from employment, including, but not limited to, unpaid leave of absence, or a temporary layoff.
15-24-4. Employees obligation.
On or before the effective date of employment, an employee must complete the sections of the W-4 form pertaining to the employees name, address, date of birth, social security number, signature and date of signing, and submit the form to his or her employer. If an employee is being reinstated after a lapse in pay, the employee may, but is not required to, complete a new W-4 form.
15-24-5. Employers reporting requirements.
Beginning October 1, 1997, an employer who hires or rehires an employee on or after October 1, 1997, must report the hiring or rehiring of the employee to the department or its designee not later than fourteen (14) days after hire or rehire if reporting on a W-4 or its equivalent, or twice a month, if reporting electronically or magnetically.
(1) The report submitted shall contain the following:
(a) The employer's name, address, and federal identification number;
(b) The employee's name, address, social security number, and date of birth;
(c) Information regarding whether the employer has employee dependent health care coverage available and the appropriate date on which the employee may qualify for the coverage; and
(d) The address to which income withholding orders and garnishments should be sent.
(2) Employers must report the information required under subsection (1) by one of the following means:
(a) By mailing a copy of the W-4 form. If a copy of the W-4 form is delivered by the United States postal services to the department after its due date, the postmark date stamped on the envelope is deemed to be the date of submission, provided that the copy of the W-4 form was mailed in the United States, first class, postage prepaid, and properly addressed in accordance with instructions provided;
(b) By transmission by magnetic tape or electronically in the format and tape layout prescribed by the department, in the case of an employer transmitting reports magnetically or electronically, by two (2) monthly transmissions not less than twelve (12) days, nor more than fifteen (15) days apart; and
(c) By any other means authorized by the department if the means will result in timely reporting and provided the employer obtains prior written approval to use said means. Use of alternative means of reporting shall not affect the obligation of the employer to submit the report within the time prescribed herein.
15-24-6. Transmission of wage withholding notices to employers.
Within two (2) business days after the date information regarding a newly-hired employee is entered into the state directory of new hires, the department shall forward a wage withholding order to the employer unless the employee's income is not subject to withholding pursuant to section 15-5-24.
15-24-7. Failure to comply.
Any employer who fails to report as required under this section, shall be liable for a civil penalty of twenty-five dollars ($25.00) for each violation, to be assessed by the department, and shall be required to provide such information. If it is demonstrated that the employer conspired with the employee to avoid reporting, a five hundred dollar ($500) civil penalty may be assessed by the department. Liability shall be joint and several.
15-24-8. Unauthorized disclosure of information.
Unauthorized disclosure of information caused by the department under these provisions, by any employee or agent of the state, is punishable by a fine of one hundred dollars ($100) per offense and is subject to administrative discipline of the employee disclosing the information.
15-24-9. Department's obligation.
The department shall use information collected pursuant to this chapter to prevent tax evasion, fraud in financial assistance, benefits or loan programs administered by agencies including, but not limited to, the department of labor and training and the department of human services, and to assist the IV-D agency in locating absent parents, and establishing, enforcing and modifying child support orders.
CLAIMS RESOLUTION ACT OF 2010, SEC. 802. REPORTING OF FIRST DAY OF EARNINGS TO DIRECTORY OF NEW HIRES.
(a) ADDITION OF REQUIREMENT.- Section 453A(b)(1)(A) of the Social Security Act (42 U.S.C. 653a(b)(1)(A)) is amended by inserting "the date services for remuneration were first performed by the employee," after "of the employee,".
(b) CONFORMING AMENDMENT REGARDING REPORTING FORMAT AND METHOD.- Section 453A(c) of the Social Security Act (42 U.S.C. 653a(c)) is amended by inserting ", to the extent practicable," after "Each report required by subsection (b) shall".
(c) EFFECTIVE DATE.- 42 USC 653a note. 26 USC 6402 note. 26 USC 6402. VerDate Nov 24 2008 15:14 Dec 14, 2010 Jkt 099139 PO 00291 Frm 00095 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL291.111 APPS06 PsN: PUBL291 dkrause on GSDDPC29PROD with PUBLIC LAWS 124 STAT. 3158 PUBLIC LAW 111-291-DEC. 8, 2010
(1) IN GENERAL.- Subject to paragraph (2), the amendments made by this section shall take effect 6 months after the date of the enactment of this Act.
(2) COMPLIANCE TRANSITION PERIOD.- If the Secretary of Health and Human Services determines that State legislation (other than legislation appropriating funds) is required in order for a State plan under part D of title IV of the Social Security Act to meet the additional requirements imposed by the amendment made by subsection (a), the plan shall not be regarded as failing to meet such requirements before the first day of the second calendar quarter beginning after the close of the first regular session of the State legislature that begins after the effective date of such amendment. If the State has a 2- year legislative session, each year of the session is deemed to be a separate regular session of the State legislature.
On October 21, 2011, President Obama signed the Trade Adjustment Assistance Extension Act of 2011 (Public Law 112-40), which amends section 453A(a)(2) of the Social Security Act. The law amends section 453A of the Social Security Act, effective April 21, 2012 as follows: Definition of Newly Hired Employee-Section 453A(a)(2) of the Social Security Act (42 U.S.C. 653a(a)(2)) is amended by adding at the end the following: NEWLY HIRED EMPLOYEE- The term "newly hired employee" means an employee who-(i) has not previously been employed by the employer; or (ii) was previously employed by the employer but has been separated from such prior employment for at least 60 consecutive days.