Q: When did the Alabama New-Hire Program begin?

A: The New-Hire Program became mandatory October 1, 1997, after a voluntary program began in 1994.

Q: Are there any employers that are exempt from the New-Hire Program?

A: No. This program is mandatory for all employers. An employer is defined as "a person or entity, including a state or local government entity or labor organization that employs an individual to perform a service for hire and pays wages directly to the individual." This includes all religious and nonprofit organizations.

Q: Which employees have to be reported?

A: All employees who are newly hired or recalled to work must be reported. An employee is defined as "an individual in the employ of another who performs a service for hire and receives wages." This includes temporary, seasonal and part-time employees. Individuals refusing work may also be reported, but this information is optional. Reporting job refusals will increase the labor pool, disqualify UC and/or Temporary Assistance for Needy Families (TANF) recipients if they refuse work for which they are qualified, and reduce the drain on UC Trust Fund.

Q: What methods of reporting new hires are available to employers?

A: Employers have two methods of reporting new hires, depending on the number of employees they have.

1. Effective May 1, 2008, the Alabama Department of Industrial Relations (DIR) requires employers with 5 or more employees to report their new hires electronically via the internet. Employers reporting by internet upload are only required to report new hires twice a month [not less than twelve (12) days and not more than sixteen (16) days apart]. For internet reporting, please use this website by clicking here. All third party submissions of new-hire data must be reported electronically, via the internet.
2. Employers with less than 5 employees can mail or fax a copy of the employee's W-4 form. All W-4's must include the following data: employee's name, address, and social security number; first day of work; and, whether newly hired or recalled to work. Also required are the employer's Federal Employment Identification Number (FEIN), name, and address. If reporting by this method, employers with less than 5 employees are required to report new hires within seven (7) days of the first day of work. Mail W-4’s to:

Alabama Department of Industrial Relations
Attn: New-Hire Clerk
649 Monroe Street, Room 3203
Montgomery, AL 36131

Note: The New Hire report-of-hire card, NH-1, is no longer accepted.

 

Q: How do multi-state employers report new hires?

A: Multi-state employers have two options: report all new hires to a single state, chosen by the employer, in which the employer has employees, or report new hires to the respective states in which employees are working. If an employer elects to report all new hires to a single state other than Alabama, the data cannot be used by Alabama to detect and/or reduce fraud associated with Mining and Reclamation. The data will only be used by the National New Hire Directory to locate non-custodial parents who are obligated to pay court-ordered child support. Also, employers electing to report all new hires for all states to Alabama must report electronically via the internet at dir.alabama.gov.

Q: How does a multi-state employer designate one (1) state to report all new hires?

A: If a multi-state employer designates one (1) state to report all new hires, the employer must notify the Secretary of Health and Human Services, in writing, as to which state the employer has designated to receive all of their new hire information.

The address of the Secretary is:

Donna E. Shalala, Secretary
Department of Health and Human Services
Room 615-F, HHH Building
200 Independence Ave. SW
Washington, DC 20201
Questions may be directed to the OSCE Information Line: (202) 401-9267
Mon- Fri 7:30a.m. – 5:30p.m. ET

Q: Does Alabama require the reporting of independent contractors through new hire?

A: Yes. Employers who hire independent contractors are required to report their hire date, name and address. Knowing the proper worker classification is critical to your business. You can learn more about the critical determination of a worker status as an independent contractor or employee at the Internal Revenue web site at: IRS.gov by selecting “independent contractor” in their keyword/search.

Q: Should we start reporting now?

A: Yes. Any employer with an active Alabama Unemployment Tax Account Number should start reporting immediately after they register with the New Hire Unit. If an employer does not have an active AUT Account Number, they should register to start reporting immediately.

Q: Where do we send New-Hire Reports?

A: All New-Hire W-4 forms should be mailed or faxed to:

Alabama Department of Industrial Relations
Attn: New-Hire Clerk
649 Monroe Street, Room 3203
Montgomery, AL 36131
W-4 forms should be mailed to the above address.
FAX: 334-242-8956