Every Alabama employer must report each new hire, rehire, or recalled employee to the Alabama Department of Labor within seven days of that person’s first day of work. That single sentence covers most of what you need to know about Alabama new hire reporting requirements, but the details around who counts, what to include, and how to submit the report vary with the size of your business.
The obligation comes from Alabama Code Section 25-11-5 and applies to every employer in the state, with no minimum size threshold. A business with one employee has the same duty as one with thousands.1Alabama Legislature. Alabama Code 25-11-5 – Reporting of New Hires, Etc.; Duties of Department The seven-day clock starts on the employee’s first day of work, not the date you extended the offer or completed onboarding paperwork.2Alabama Department of Labor. Alabama New Hire Reporting
Independent contractors are not reported through this system.
Who Counts as a New Hire
The definition trips up employers who bring back seasonal or temporary workers. Alabama treats someone as a new hire if they have never worked for your business before, or if they previously worked for you but were separated for at least 60 consecutive days.2Alabama Department of Labor. Alabama New Hire Reporting
An employee who takes a two-week vacation or a short leave and returns does not trigger a new report. Someone who was laid off for three months and comes back does. Recalls from layoff or furlough that lasted 60 days or more require a new hire report just as if the person had never worked for you.
What the Report Must Include
Each report needs the following information about the employee and the employer:
- Employee’s full name, address, Social Security number, first day of work, and whether the person is newly hired or recalled to work.
- Employer’s business name, address, and Federal Employer Identification Number (FEIN).2Alabama Department of Labor. Alabama New Hire Reporting
The statute also calls for state and federal identification numbers for the employer.1Alabama Legislature. Alabama Code 25-11-5 – Reporting of New Hires, Etc.; Duties of Department In practice, the FEIN covers the federal side. Make sure the employee’s name and Social Security number match exactly. Data mismatches slow down the cross-matching the system depends on.
How to Submit the Report
Alabama splits employers into two groups based on size, and the submission method depends on which group you fall into.
Employers With Five or More Employees
If you have five or more employees, you must report electronically through the Department of Labor’s online portal. The portal lets you fill out individual reports on screen or upload batch files.3Alabama Department of Labor. What Methods of Reporting New Hires Are Available to Employers?
Employers who report electronically may submit twice per month instead of within seven days of each individual hire, as long as the two transmissions are spaced between 12 and 16 days apart.1Alabama Legislature. Alabama Code 25-11-5 – Reporting of New Hires, Etc.; Duties of Department This lines up with biweekly payroll cycles.
Third-party payroll providers must submit electronically regardless of the client employer’s size.3Alabama Department of Labor. What Methods of Reporting New Hires Are Available to Employers?
Employers With Fewer Than Five Employees
Small employers with fewer than five workers can mail or fax a copy of the employee’s W-4 form instead of using the electronic system. The W-4 must include the employee’s name, address, Social Security number, first day of work, whether the person is newly hired or recalled, and your FEIN, business name, and address. If the standard W-4 does not already contain all of these fields, write the missing information on the form before sending it. The old NH-1 report-of-hire card is no longer accepted.3Alabama Department of Labor. What Methods of Reporting New Hires Are Available to Employers?
Mail reports to:
Alabama Department of Labor
Attn: New-Hire Clerk
649 Monroe Street, Room 3203
Montgomery, AL 36131
The seven-day deadline still applies, so mail early enough to account for delivery time.
Multi-State Employers
If your business has employees working in two or more states, you can designate a single state to receive all of your new hire reports instead of filing separately in each state. You must have at least one employee working in the state you choose.4U.S. Department of Health and Human Services (Administration for Children and Families). Multistate Employer Registration Form for New Hire Reporting Federal law authorizes this option under 42 U.S.C. § 653A(b)(1)(B), and it applies only to employers who transmit reports electronically.5GovInfo. 42 USC 653a – State Directory of New Hires
Register through the online portal at the federal Office of Child Support Enforcement or email a completed Multistate Employer Registration Form to that office. If your company later merges with or acquires another business, submit updated registration information.4U.S. Department of Health and Human Services (Administration for Children and Families). Multistate Employer Registration Form for New Hire Reporting
Penalty for Late or Missing Reports
An employer who fails to report a new hire on time faces an administrative penalty of up to $25 per violation.6Alabama Administrative Code. Alabama Administrative Code 480-1-1-.11 – Electronic Filing of New Hire Data The amount applies per employee, per missed report. A company that hires 20 people in a month and files none of the required reports could face up to $500 in fines from that batch alone.
The dollar figure is modest, but the pattern matters. Repeated misses signal a compliance gap that can invite closer scrutiny from state agencies, and they slow down the child support enforcement and benefit cross-matching that the reporting system was built to support.