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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