What are the penalties imposed on employers for noncompliance with new hire reporting?
An employer may be subject to fines and penalties for failure to comply with new hire reporting. Massachusetts regulations impose the following penalties on employers or payors of income who do not comply: (a) Up to $25 for each employee, independent contractor, or other recipient of periodic income for whom the employer, payor of income or insurance company fails to comply with the reporting requirement or about whom required information is not accurately reported; or (b) $500 for each employee, independent contractor, or other recipient of periodic income, if the failure to comply with the reporting requirement is the result of a conspiracy between the employer, payor of income or insurance company and the employee, independent contractor or other recipient of periodic income not to provide the required report or to provide a false or incomplete report. For more information, see M.G.L. 830 CMR 62E.2.1 Reporting of New Hires or go to the Massachusetts New Hire page.
