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NPRC Asks IRS to Modify Form W-4

The NPRC asked the IRS to add “First Date of Work” to Form W-4. Form W-4 was not designed to be submitted to any government agency. However, the 1996 Welfare Reform Act (PRWORA) required all employers to report the hiring of new employees, and provided that employers may submit a copy of IRS Form W-4. In 2010, “hire” date (first date of employment) was added as a mandatory reporting element under federal law, so all states require “hire date” on New Hire reports, and yet Form W-4 does not have a space for it. This results in missing data, which drives up costs for employers, states and government integrity programs.

NPRC worked with the Federal Office of Child Support Enforcement, which estimated that roughly 180,000 new hire reports annually are missing the hire date. New hire reports are also used by Unemployment Insurance agencies to identify active UI claimants who have become reemployed. But without the hire date, they can’t use the information, and as a result, state UI taxes for all employers are higher than necessary. Additionally, child support agencies may not be able to locate persons who owe child support if the hire date is missing.

Last updated July 14, 2017