California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 1 - Unemployment and Disability Compensation › Part 1 - Unemployment Compensation › Chapter 4 - CONTRIBUTIONS AND REPORTS › Article 6 - RECORDS, REPORTS AND CONTRIBUTION PAYMENTS › Section 1088.5-1 - Reporting a Newly Hired Employee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For the purposes of Section
						  1088.5 of the code, an individual
						  is considered a new hire on the first day in which the individual performs
						  services for wages, i.e. the individual's first day of work. In any case where
						  an employer is required to give an individual a W-2 form, the employer must
						  meet the new hire reporting requirements.
If an employee returning to work is required to
							 complete a new W-4 form, the employer must report the individual as a new hire
							 to the department. If however, the returning employee had not been formally
							 terminated or removed from payroll records, there is no need to report that
							 individual as a new hire.
EXAMPLE A: An individual is hired by an employer and
							 his first day of work is January 2. He submits a completed W-4 to his employer
							 for personal income tax withholding purposes before he commences his employment
							 and is reported as a new hire. Subsequently, the employee is laid off on May
							 31. The employer recalls the individual to work beginning on December 1.
							 Because the employee was formally terminated on May 31, the employee is
							 required to file a W-4 with his employer on or before he commences his
							 employment on December 1 and must be reported as a new hire.
EXAMPLE B: An individual is hired by an employer and
							 his first day of work is January 2, He submits a completed W-4 to his employer
							 before he commences his employment and is reported as a new hire. The employer
							 furloughs the worker on May 1 with a return work date of December 1. Because
							 the employee was not terminated and remained on the payroll records of the
							 employer, the employee is not required to file a W-4 with his employer when he
							 returns to work on December 1 and is not reported as a new
							 hire.
(b) The employer may
						  submit the information required in Section
						  1088.5 of the code by completing a
						  form DE 34 "Report of New Employee(s)," Rev. 3: (1/98), incorporated herein by
						  reference.
(c) Any employer who
						  transmits reports magnetically or electronically and has employees in two or
						  more states may designate one state to report all new hires. An employer who
						  makes this designation must notify, in writing, the Department of Health and
						  Human Services, Administration for Children and Families, Office of Child
						  Support Enforcement, Multistate Employer Notification.
1. New
							 section filed 3-31-93; operative 4-1-93 (Register 93, No. 14). For prior
							 history, see Register 92, No. 50.
2. Editorial correction correcting
							 placement of section and amending HISTORY 1 (Register 93, No.
							 31).
3. Repealer and new section filed 10-8-98; operative 11-7-98
							 (Register 98, No. 41).
Note: Authority cited: Sections
								305
								and
								306,
								Unemployment Insurance Code. Reference: Section
								1088.5,
								Unemployment Insurance Code.