New Hire & Lump Sum Reporting: What Employers Need to Know

⚡Purpose:

Employers have specific legal reporting responsibilities related to newly hired employees and certain types of employee payments. These requirements exist to support state child support enforcement programs and ensure that required income withholding can be applied when necessary.

This article explains what New Hire Reporting and Lump Sum Payment Reporting are, why they matter, and how Push supports you as your payroll provider with these compliance processes.

📌 | Note: Reporting requirements vary by state. Always confirm the specific rules that apply in your jurisdiction.

📋 Topics covered in this article:

• New Hire Reporting
• Lump Sum Payment Reporting
•  Income Withholding Orders (IWOs)
• How Your Payroll Provider Supports You
• Employer Responsibilities

📚 Related articles:

• Managing Payroll, Compliance, & Employee Management Automations (U.S. Accounts Only)

What Is New Hire Reporting?

New Hire Reporting requires employers to report newly hired (and sometimes rehired) employees to the state within a specific timeframe after their start date.

States use this information to:

• Locate parents who owe child support
• Issue Income Withholding Orders (IWOs)
• Prevent improper benefit payments

What Must Be Reported?

Most state reporting systems require the following employee and employer details:

• Employee name
• Address
• Social Security Number
• Employer name and FEIN
• Date of hire

When Must It Be Reported (Due Date)?

Most states require new hire reports to be submitted within 20 days of the employee’s hire date.

Some states allow employers to submit reports in batches, while others require faster reporting timelines.

📌 | Important: Reporting deadlines and processes may differ by state.

What Is Lump Sum Payment Reporting?

Some states require employers to report certain non-regular payments before issuing them to employees who may owe past-due child support.

This process allows the state to determine whether the funds should be withheld to satisfy arrears.

What Is a Lump Sum Payment?

A lump sum payment is generally income that is not part of normal recurring payroll.

Examples include:

• Bonuses (discretionary and nondiscretionary)
• Commissions
• Signing bonuses
• Severance or termination pay
• Relocation incentives
• Workers’ compensation wage replacement
• Certain insurance or settlement payments, replacing wages

Expense reimbursements are typically excluded.

📌 | Important: Please refer to your state’s specific rules for the full list of payments.

Is There a Minimum Amount?

Many states do not have a minimum dollar threshold. Requirements vary by state.

Why Does This Matter?

If reporting is required and not completed:

• Employers may face penalties
• Employers may be liable for the amount that should have been withheld

Income Withholding Orders (IWOs)

If an employee owes child support, the state may issue an Income Withholding Order (IWO).

Employers must:

• Withhold the specified amount
• Follow federal withholding limits under the Consumer Credit Protection Act (CCPA)
• Remit payments according to the order instructions

⚠️ | Important: Failure to comply with a valid IWO can result in employer liability.

How Your Payroll Provider Supports You

As your third-party payroll provider, Push helps support compliance with reporting and withholding requirements by assisting with several key processes.

✔ New Hire Reporting

• Filing new hire reports on your behalf
• Transmitting required employee data to the appropriate state agency

This helps ensure that newly hired employees are reported within the required timelines.

✔ Garnishment Processing (if requested)

Support may also be available for processing child support garnishments.

This may include:

• Assisting with child support remittances
• Providing guidance on setup and processing

📌| Note: Employers are still responsible for maintaining and validating deduction amounts. Contact our Support Team at support@pushoperations.com if you need help setting up garnishment processing.

✔ Data Support for Lump Sum Reporting

When lump sum reporting is required, payroll systems can help provide the employee information needed for reporting, such as:

• Employee name
• Social Security Number
• Employment details

If the state issues a withholding order for the payment, the payroll system can process the additional deduction during payroll.

Employer Responsibilities

While payroll systems help facilitate reporting and withholding processes, the employer remains legally responsible for meeting compliance requirements.

Clients are responsible for:

• Accurate and timely entry of new hires into Push
• Confirming whether state-specific lump sum reporting applies
• Ensuring payments are not entered/paid until state clearance is provided
• Entering/validating the correct deduction amounts on pay runs in Push.
• If your organization processes payments, you are responsible for timely remitting withheld funds to agencies for garnishments and child support payments.

Additional Information

If you have any questions about new-hire reporting setup, child support processing, or lump-sum payment handling, don't hesitate to get in touch with our Support Team at support@pushoperations.com. We're happy to assist you in ensuring accurate and compliant payroll practices.