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LEGISLATION WOULD REQUIRE DIRECTORY OF NEW EMPLOYEES


Monday, July 17, 1995
Section: Business Monday
Page: 4F

By: Simson Garfinkel, Special to the Mercury News

Both the House and the Senate versions of the welfare reform legislation require that each state establish a directory of new hires. Employers in each state would then file a form for each newly hired employee that would list the employee's name, address, Social Security number, and the Internal Revenue Service code number for the employee's job. All new hires would have their numbers scanned against a national database of child-support orders to see if a portion of the employee's salary should be automatically withheld and sent to the spouse.

California's Employment Development Department has been compiling a directory of new hires since April 1993, but so far only employers with at least five workers in a small number of professions must comply. Targeted professions include construction, landscaping, auto dealers and repair shops, restaurants, hotels, health services, business services and engineering, accounting and research services.

Failing to report people hired or rehired within 30 days could result in a $250 fine per person per month. The EDD initially was lenient, but it has begun to get more strict, says Bob Spidell, publisher of Spidell's California Taxletter.

The legislation further requires that all federal and state agencies engaged in child-support enforcement have full access to all state information systems related to motor vehicles and law enforcement.

The legislation would create a Federal Case Registry of Child Support Orders that would include the name, Social Security number, date of birth, case identification numbers, and other ''uniform identification numbers'' of both parents for every child-support order in the nation.

The registry also would include detailed financial information regarding each order, including the amount of support payments, the amount owed and collected, distribution of collected amounts, and liens that have been imposed. The legislation specifically requires that states use ''standardized data elements'' so computers in different states can easily exchange information.


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