New Hire Reporting now includes Independent Contractors

Ohio’s new hire reporting program now includes independent contractors

(Reprinted in part from the August Ohio REALTOR® )

For several years Ohio employers have been required to report newly hired employees to the Ohio Department of Job and Family Services. The ODJFS is the state agency that oversees Ohio’s child support enforcement and public assistance programs such as Aid to Dependent Children, Medicaid, Food Stamps and Foster Care. The New Hire Reporting Program improves child support collections on a state and national level and is used to detect fraud in any program administered by the ODJFS.

Initially the reporting requirement did not apply to independent contractors as the definition of “employee” did not include independent contractors. However, recently the definition of “employee” was changed. The new hire reporting law now defines “employee” as “an individual who is employed to provide services for compensation to an employer and includes an individual who provides services to an employer under a contract as an independent contractor, and who is an individual, the sole shareholder of a corporation, or the sole member of a limited liability company.”  As such, the ODJFS has revised their reporting form (JFS 07048) to include independent contractors.

This information must be reported no later than 20 days from the date of hire.  An employer who fails to make a new hire report can be fined up to $25 for each failure to report and up to $500 is the failure to report was intentional.

Additional information, as well as the new reporting form can be obtained by calling OAR’s Information Central at 1-800-879-4636.  For additional information and/or to register to be able to report new hires on-line, visit the Ohio New Hire Reporting Center web site at www.NewHireReporting.com.