New Vendor Partnership Improves Hire Reporting Compliance

Employers are a key partner to the California Child Support Services (DCSS) Program. They play a vital role in ensuring that families get the financial and medical support they need, as more than 70 percent of all child support collections are made through payroll deductions completed by employers.

Employers have a responsibility to report newly hired or rehired employees to the Employment Development Department (EDD) within 20 days of the employee’s start date. This reporting assists the child support program with locating parents and enforcing child support orders. New hire reports generated by EDD are matched against child support records to locate parents who are not yet paying child support. It is critical that these reports are as accurate and current as possible, yet new hire reporting information provided by the Federal Office of Child Support Enforcement for the third quarter of 2018 shows that employers in California are only reporting 50 percent of newly hired or rehired employees. More than 175,000 employers neglected to report over 1.2 million employees during that time.

To help improve new hire reporting compliance, DCSS has partnered with Stellarware, a vendor specializing in new hire reporting. Stellarware has created the California New Hire Compliance Center and will be reaching out to California employers that have not reported their newly hired employees to EDD in past quarters. The California New Hire Compliance Center is a webpage linked to the CA DCSS website where employers can view their reporting errors and make corrections. Non-compliant employers will be contacted through mailings, email, and by phone, and will be provided information on the types of reporting errors and how to correct them, as well as educating the employer on new hire reporting requirements. This new partnership with Stellarware is a proactive move towards improving new hire compliance, resulting in more timely data to improve services for participant families.