If you hire or rehire someone for pay in Tennessee, you have 20 days to report that worker to the state. That is the core of Tennessee’s new hire reporting requirements, and it applies to private employers, government agencies, and labor organizations alike. The report can go in through the state’s online portal at tnnewhire.com, by mail, or electronically, and it must carry a specific set of data points about both the employee and your business.
Who You Have to Report
Tennessee Code ยง 36-5-1101 defines “employer” by reference to the Internal Revenue Code and adds government entities and labor organizations to the list.1Justia. Tennessee Code 36-5-1101 – Part Definitions If you pay someone for work performed in Tennessee, you qualify. Every newly hired employee counts, whether the position is full-time, part-time, or temporary.
Rehires trigger a fresh report on the same 20-day clock.2Tennessee Department of Workforce. New Hire Reporting Temporary staffing agencies report the workers they place, once at the time of hire. A new report is only needed if the worker later has a break in service from the agency itself, not each time the agency rotates the worker to a different client.
Independent contractors are in too. The state’s reporting portal says contractor information must be reported within 20 days of making payments totaling $600. That threshold is lower than many employers expect, so any business that regularly uses freelancers or 1099 workers should build the check into its payment workflow.
What Information the Report Must Include
Federal law sets the baseline data every new hire report must contain. For the employee: full legal name, current residential address, Social Security number, and the date services for pay were first performed.3Office of the Law Revision Counsel. 42 USC 653a – State Directory of New Hires For the employer: business name, address, and Federal Employer Identification Number.4Justia. Tennessee Code 36-5-1102 – Reports of New Employees
Tennessee adds one data point beyond the federal minimum: a yes-or-no field on whether the employer offers medical insurance. This helps the state identify situations where a child’s health coverage might be available through a parent’s job. Leaving it blank won’t necessarily invalidate the report, but completing it heads off follow-up inquiries from the Department of Human Services.
Accuracy matters more than speed. A transposed digit in a Social Security number can delay child support enforcement and generate correction requests. Checking the employee’s information against their Social Security card or other government-issued ID during onboarding catches most errors before they reach the state database.
Deadline and How to Submit
You have 20 days from the date of hire, which Tennessee defines as the first day the employee performs services for pay.2Tennessee Department of Workforce. New Hire Reporting Employers who transmit electronically have an alternative: two monthly transmissions spaced 12 to 16 days apart.3Office of the Law Revision Counsel. 42 USC 653a – State Directory of New Hires
The report should be made on a W-4 or, at your option, an equivalent form containing the same information. Submissions can go by first-class mail, electronically, or magnetically.4Justia. Tennessee Code 36-5-1102 – Reports of New Employees In practice, the state runs an online portal at tnnewhire.com where you can create an account and enter hire data directly.2Tennessee Department of Workforce. New Hire Reporting The portal issues a confirmation receipt that serves as your proof of compliance.
If you prefer paper, mailing a copy of the completed W-4 satisfies the requirement so long as the form carries all the required data elements. Whichever route you take, keep a copy of what you submitted and any confirmation you received. That record is your defense if the state later asks whether you reported on time.
If You Have Employees in Other States
Employers with workers in two or more states can choose. You can report each new hire to the state where that employee works, or designate one state and send every new hire report there. Tennessee’s statute mirrors the federal framework.3Office of the Law Revision Counsel. 42 USC 653a – State Directory of New Hires
The single-state option has conditions. You must notify the U.S. Department of Health and Human Services in writing of your chosen state, you must submit all reports under this option electronically, and each record must include the employee’s state of hire. You cannot mix the two approaches: once you elect single-state reporting, every new hire across the company goes through that one state until you update your registration with HHS. For employers in only two or three states, reporting state by state is often simpler than managing the federal registration.
Penalties for Missing or False Reports
Tennessee does not fine you the first time you miss a report. The Department of Human Services first sends a written notification that you’ve failed to comply. If you continue to miss reports after that notice, the penalty is $20 for each unreported employee.5Justia. Tennessee Code 36-5-1107 – Failure to Make Necessary Reports; Penalties
A heavier penalty applies to collusion. If an employer and employee agree not to file the required report, or deliberately file a false or incomplete one, each party faces a $400 civil penalty.5Justia. Tennessee Code 36-5-1107 – Failure to Make Necessary Reports; Penalties
Penalties are assessed by written notice from the commissioner of Human Services. You have 15 days from the mailing date to file a written appeal and request an administrative hearing. Miss that window and the assessment becomes final, with payment due within 15 days. Unpaid amounts can lead to a lien on the employer’s property and liability for the state’s litigation costs.5Justia. Tennessee Code 36-5-1107 – Failure to Make Necessary Reports; Penalties The lien route is rarely used, but on a business with dozens of unreported hires, those $20 charges add up quickly.
What to Do About a Social Security Number Problem
The most common reporting headache is a Social Security number that doesn’t match the employee’s name. Usually it’s a typing error, a legal name change the employee hasn’t updated with the Social Security Administration, or a hyphenated name entered inconsistently across systems. You are responsible for investigating the mismatch even when a payroll service submitted the data.6Social Security Administration. Questions Employers Ask for the Employer Correction Request Notice
Start by comparing the SSN and name against your own employment records. If you find your own typo, correct it and resubmit. If your records match what you submitted, ask the employee to check their Social Security card and tell you about any discrepancy between the card and your files. Most mismatches resolve at one of those two steps. A mismatch alone is not a reason to take adverse action against the employee or to assume fraud.
Sometimes a new employee has applied for a Social Security number but hasn’t received the card yet. The SSN is one of the required data elements, but the 20-day clock doesn’t pause. Submit the report on time with the information you have, then follow up with a corrected report once the number arrives.