NY Tax L § 171-H (2021)
2021 New York Laws TAX - Tax Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance 171-H - State Directory of New Hires.

§  171-h.  State  directory  of  new  hires.  (1)  Establishment.  The department shall establish an automated directory known  as  the  "State Directory  of  New  Hires"  which  shall contain information supplied by employers  in  accordance  with  subdivision  three  of  this   section, regarding each newly hired or re-hired employee.  (2)   Definitions.  For  the  purposes  of  this  section,  the  terms "employer," "employee," and "business  day"  shall  have  the  following meanings:   * (a)  "employee"  means  an  individual who is an employee within the meaning of chapter twenty-four of the internal revenue code of 1986, and does not include an employee of a federal  or  state  agency  performing intelligence or counterintelligence functions if the head of such agency has  determined that a report made pursuant to this section with respect to  the  individual  could  endanger  the  safety  of  the  employee  or compromise an ongoing investigation or intelligence mission.   * NB Effective until January 1, 2022   * (a)  "employee"  means  an  individual who is an employee within the meaning of chapter twenty-four of the internal  revenue  code  of  1986, including an individual under an independent contractor arrangement with contracts in excess of twenty-five hundred dollars, and does not include an  employee  of  a  federal  or state agency performing intelligence or counterintelligence functions if the head of such agency has  determined that  a  report  made  pursuant  to  this  section  with  respect to the individual could endanger the safety of the employee  or  compromise  an ongoing investigation or intelligence mission.   * NB Effective January 1, 2022  (b)  "employer" means an individual or entity within the meaning given the term employer in section three thousand four hundred one (d) of  the internal revenue code of 1986 and includes:  (i) any governmental entity, and  (ii)  any  labor  organization  as  defined  in section two (5) of the national labor relations act, including any  entity  (also  known  as  a "hiring  hall") which is used by such labor organization and an employer to carry out the requirements described in section eight (f)(3)  of  the national  labor  relations  act  with  respect to any agreement that may exist between the labor organization and the employer.  (c) "business day" means a day on which state  offices  are  open  for regular business.  (3) Employer reporting requirements:  (a)  General.  Employers  shall  furnish to the state directory of new hires a report that contains the  name,  address,  and  social  security number  of each newly hired or re-hired employee who works in the state, and the employer's name, address, and identification number as  assigned pursuant  to  section  six  thousand  one  hundred  nine of the internal revenue code of 1986. Employers also shall report  if  dependent  health insurance benefits are available and the date the employee qualifies for the benefits.  (b)  Format.  Each  report  shall  be  submitted  on a W-4 (employee's withholding allowance certificate)  form  or,  at  employer  option,  an equivalent  form  and  transmitted by first class mail, magnetically, or electronically to the state directory of new hires. In addition, if each report is submitted on a W-4, an additional form as  prescribed  by  the department  shall  be  submitted to report if dependent health insurance benefits are available and the  date  the  employee  qualifies  for  the benefits. That additional form shall be transmitted by first class mail, magnetically, or electronically to the state directory of new hires.  (c)  Timing.  Employers  must submit reports to the state directory of new hires within twenty  calendar  days  of  the  employer's  hiring  or  re-hiring  of  the  employee.  However,  in  the  case  of  an  employer transmitting reports magnetically  or  electronically,  by  two  monthly transmissions (if necessary), such reports shall be transmitted not less than twelve calendar days nor more than sixteen calendar days apart.  (d)  Multistate  employers. An employer that has employees who work in New York and employees who  work  in  one  or  more  other  states,  and transmits reports magnetically or electronically, may designate New York or  one  of the other states in which such employer has employees as the state to which the employer  will  transmit  the  report  to  the  state directory  of  new  hires.  Any employer which transmits reports by this method must notify the secretary of the federal department of health and human services in writing as to which state such employer designates for the purpose of sending reports.  (e)  Federal  government  employers.  Any   department,   agency,   or instrumentality  of  the  federal  government  shall  transmit  new hire reports as required by section four hundred fifty-three A  (b)(1)(C)  of the social security act.  (4) The department shall:  (a) notify all employers of the requirements for reporting information to  the state directory of new hires as provided in subdivision three of this section;  (b) enter information  into  the  database  maintained  by  the  state directory  of  new  hires  within  five business days of receipt from an employer pursuant to subdivision three of this section;  (c) make automated comparisons of social security numbers between  the state  directory  of new hires and the state case registry maintained by the office of temporary and disability assistance for administration  of the  child  support  enforcement  program  and,  where there is a match, provide the office of temporary and disability assistance with the name, address, and social security number of the employee to whom  the  social security  number  is  assigned, and the name and address of the employer and the employer's identifying number assigned  to  the  employer  under section  six  thousand nine of the internal revenue code of 1986, within one business day after the date the  information  is  entered  into  the state directory of new hires;  (d)  transmit  new  hire  information to the national directory of new hires maintained by the federal department of health and human  services within  three  business  days  after the date the information is entered into the state directory of new hires;  (e) conduct matches  with  the  office  of  temporary  and  disability assistance,  the  department  of  health, and the department of labor to verify individuals' eligibility for the various programs specified under section one thousand one hundred thirty-seven (b) of the social security act and for other public assistance programs authorized  by  state  law, and   for  the  purposes  of  administering  state  employment  security programs, and with the workers' compensation board for  the  purpose  of administering workers' compensation programs;  (f)  on  or before October first, nineteen hundred ninety-seven, enter into  written  agreements  with  the  commissioners  of  the  office  of temporary  and disability assistance, health, and labor on behalf of the office of temporary and disability assistance  and  the  departments  of health and labor respectively and the chair of the workers' compensation board on behalf of such board, which shall:  (i)  provide  for  the  disclosure  of  information  obtained from the reports required to be  submitted  pursuant  to  this  section  to  such departments and board for the purposes set forth in this section;  (ii)  specify  the  frequency  with which the department shall furnish information obtained from such reports to such office, departments,  and  board,  which  shall  be  within  one  business  day  after the date the information is entered into the state directory of new hires;  (iii)  set  forth the procedure for reimbursement of the department by such office, departments, and board  subject  to  the  approval  of  the director  of  the  budget  for  the additional costs of carrying out the provisions of this section;  (iv) include such other matters as the parties to such agreement shall deem necessary to carry out the provisions of this section; and  (g) furnish to the national directory of new  hires,  on  a  quarterly basis,   extracts  of  the  reports  required  under  paragraph  six  of subsection (a) of section three hundred  three  of  the  federal  social security  act  to be made to the secretary of labor concerning wages and unemployment compensation paid to individuals, by  such  dates,  and  in such  manner as the secretary of health and human services shall specify by regulations. The state department of labor shall, consistent with the authority contained in paragraph e of subdivision three of section  five hundred  thirty-seven  of the labor law, disclose to the state directory of new hires, such wage and unemployment compensation information as may be necessary to allow such state directory to comply with the provisions of this paragraph.