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How Will New Hire Reporting Benefit Employers?

A direct benefit to employers is the reduction and prevention of fraudulent unemployment and workers` compensation payments. Timely receipt of New Hire data allows each state to cross­match this data against its active unemployment claimant (UIC) files­ either stopping payments or recovering erroneous payments. For example, although only 20 percent of the state of Tennessee`s employers are currently required to report, the state has saved over $11.4 million in UIC benefits since 1991. With 100 percent of the employers reporting, as required by PRWORA, Tennessee and every state should save significantly more in the future.

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