NEW HIRE AND TERMINATED EMPLOYEE
For new hires, you are required to report them to the Massachusetts Department of Revenue (DOR) within fourteen days of hiring. This has been the rule for Massachusetts for some time, but the Federal government has also decided to require the reporting of new hires. The required information from employees includes name, address and social security number and from employers the name, address and Federal Employer Identification Number (FEIN).
There are several methods for reporting the information available to the employer. One is over the Internet, another is magnetic tape, by mail, and finally by fax. Faxing the information is likely to be the easiest for most employers. This may be done with a list in a specific format (we can provide an example) or by simply faxing a copy of the new employee’s W-4 that is completed for their payroll deductions and confirmation of Social Security number. Accompanying this letter is a W-4 that you may photocopy as necessary.
If you choose to fax the information to the DOR, the telephone number is 617-887-5049. By mail, the address is:
Massachusetts Department of Revenue
PO Box 7032
Boston MA 02204
Failure to report this information on a timely basis may result in penalties of up to $500. If you use a payroll service, you may wish to check with that service to determine if they can handle the necessary reporting as part of their service to your company.
There have been some changes in the unemployment insurance regulations in recent time. It is important that you, as an employer, be aware of these changes so that you can comply with them. Failure to be in compliance can result in substantial penalties and increased employment insurance contributions.
First, when you terminate an employee, a copy of the pamphlet, To Massachusetts Workers: How to File for Unemployment Insurance Benefits, must be provided at the time of separation or as near to that time as is possible. This pamphlet may be mailed to the former employee at their last known address if it is not possible to be given at the time of termination. Termination is defined here to be a separation that is permanent, for an indefinite period or for a period of seven or more days.
Second, you should have received a poster that includes information on how to file a claim for unemployment insurance. This poster is required to be displayed in a conspicuous place, accessible to all of your employees. The poster has space for disclosing your name and address and your Department of Employment and Training identification number. There are civil penalties for each failure to post this information.
These posters and pamphlets are available from the Massachusetts Department of Employment and Training by telephone at 617-626-5400 or by the World Wide Web at http://ww.detma.org/detpubs#employer. Alternatively, you may contact my office and we could order them for you. We have enclosed one copy of the pamphlet for your convenience.
If you have an employee that terminates her/his employment and was subject to wage garnishment, such as for child support, you should promptly notify the DOR that their employment has ceased and provide information about the new employer, if known.
These reporting requirements for changes in your employees’ status should be adhered to carefully. The requirements are in place to assist the government reduce fraud in the areas of welfare and unemployment compensation as well as assisting in locating individuals that may owe child support.
My office is available to assist in the completion of any required forms as well as to answer any questions you may have on these issues.
Thomas A. Huse
Back to Client Letters Directory