Alabama's New Hire Act of 1997 requires all employers to report the name, address, and Social Security number of each new employee to the state (AL Code Sec. 25-11-1). Employers with five or more employees must report new hires electronically via the Internet. Employers with fewer than five employees may report electronically or by mailing or faxing a copy of the employee’s W-4 form. Employers must also report the rehire of any employee who was previously laid off, furloughed, terminated, or placed on leave without pay. Failure to report as required can result in the assessment of fines against the employer.
All employers operating in the state should report new hires. However, some payroll processing services automatically report additions to the employer's payroll as they are processed. Employers that use a payroll processing service should check to see if it is automatically reporting new hires.
Multistate employers. Under federal regulations governing the nationwide new hire reporting registry, multistate employers are permitted to designate one state for the reporting of new hires, provided that reports are filed electronically in accordance with the designated state's guidelines for electronic filing. Employers choosing to exercise this option must notify the federal Department of Health and Human Services of which state will receive the employer's reports. This notice may be sent to:
Department of Health and Human ...