Are temporary employment agencies, union halls, and placement services that refer individuals for work to third party employers required to report the employee as a “new hire”?
Yes, if a legal relationship exists between the employer and employee [26 U.S.C. Sections 3401-3406]. If the agency, halls, etc., are paying wages to the individual, a new hire report must be submitted. The individual needs to be reported only once unless there is a break in service from your company and a new W-4 form is required to begin work. If your company simply refers individuals for employment and does not pay salaries or wages, new hire reports are not necessary because the employer who actually hires and pays the employee will be required to report the new hire information.
Related Questions
- Are temporary employment agencies, union halls, and placement services that refer individuals for work to third party employers required to report the employee as a "new hire"?
- Should temporary help and placement services firms report individuals they refer to employer-clients?
- Are temporary employment agencies, labor organizations, and hiring halls required to report?
