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Newbie Rules

Do you know your state's requirements for reporting new hires?

By Ellen Paris

Opinions expressed by Entrepreneur contributors are their own.

States are cracking down on deadbeat dads and fighting fraud intheir unemployment and worker's compensation programs. Laudablegoals, no doubt-but the end result means entrepreneurs will spendmore time filling out paperwork on new hires.

The 1996 welfare reform law required all states to set upnew-hire reporting programs. "Besides improving child-supportenforcement, the hope is that states will cross-check theirnew-hire information with their own unemployment-compensationdatabases and catch people who are collecting benefits ifthey're working," says Elizabeth Pope, a senior writer andanalyst at CCH Inc., a Riverwoods, Florida, company that providessoftware and information to HR, legal, accounting andsmall-business professionals. "[The welfare reform law] hasthe potential to help taxpayers."

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