NATIONAL DIRECTORY OF NEW HIRES

Office of Child Support EnforcementAdministration for Children and FamiliesDepartment of Health and Human Services

What is the NDNH?2

National database of wage and employment information New Hire Reports

Employee SSN, name and address Employer FEIN, name and address Date of hire Optional data elements: DOB and employer

optional address (income withholding)

What is the NDNH?

Quarterly wage reports Employee SSN, name and wages Reporting quarter Employer FEIN Employer name and address

Unemployment compensation claims Claimant name, SSN and address Claimant benefit amount Reporting period

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What is in the NDNH?4

Approximately 1.4B individual employment records (data is retained for 24 months)

In FY 2011 NDNH added:

48.6 M New Hire (W-4) data on newly hired employees

585.1 M Quarterly Wage (QW) data on wage earners

49.1M Unemployment compensation claims (zero payments and applications)

Data reported from 54 states and territories and all federal agencies

State directories of new hires (W-4)

Federal payroll agencies (W-4, QW)

State Workforce Agencies (QW, unemployment insurance (UI) claims)

NDNH Reporting5

State Workforce Agencies (SWA) Report QW within 4 months after quarter Report UI within 1 month after quarter

Federal Agencies Report W-4 within 20 days Report QW within 1 month after quarter

State Directory of New Hires (SDNH) Report W4 daily

NDNH Submission Recommendations6

Submit QW records weekly or monthly

Submit all records processed Submit employee name information Automate e-IWO process

About 15 UI agencies accept direct IWOs from all states—in the other states, a two state case must be opened.

Why the NDNH?7

Primary purpose is to assist state child support agencies to enforce support orders

Congress amended the Social Security Act to provide access to NDNH information for secondary purposes: Verify eligibility for needs-based programs Reduce improper payments Collect federal debts

NDNH Strengths

97% of all records submitted to the NDNH are available for matching SSN/name combinations submitted to the NDNH are

verified as accurate by the Social Security Administration

Some states do not submit any or enough name information in their QW records for verification: AZ, CO, DC, IA, KS, ME, NC, PR, WV, WY

SSNs with missing names are confirmed to be valid SSNs and stored in the NDNH as “non-verifiable”

Only “verified” or “non-verifiable” records are available for matching

Several State Workforce Agencies (SWA) submit quarterly wage (QW) records more frequently than quarterly 9 states submitting weekly: FL, ID, IN, MI, NC, OK, TX,

VA, VI 3 states submitting monthly: GA, WA, WV

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Benefits of NDNH Data - 20109

TANF – state agencies avoided nearly $2.7 million in costs they would otherwise have erroneously incurred

SNAP – avoided $1.5M in its first month DOL – use of SDNH and NDNH matching

saved approximately $182.9 million, due to eligibility errors and early detection of benefit earnings

HUD – NDNH data indicates that intentional unreported income results in an overpayment of $203.2 million in annual HUD subsidy costs

Benefits of NDNH Data - 2011

FMS – 14% increase of AWG notices fromFY2010 resulting in collections of $27.2 million

SSA – annual benefits of approximately $651.6million in prevention of future overpayments and adjustments of incorrect payment amounts in the Supplemental Security Income program.

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NDNH Monitoring11

Monitor data submissions and file content to proactively ensure data quality

Work with submitters to address issues identified

New Hire reports are comparable to Bureau of Labor Statistics

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Federal Parent Locator Service (FPLS) and Bureau of Labor Statistics (BLS) Comparison Monthly Number of New Hires (January 2002 - November 2011)

FPLS BLS*

*In March 2009, BLS changed the methodology for estimating these statistics. All BLS data on the graph have been revised according to the new methodology.

What identifies people in the NDNH?Social Security numbers and names SSNs/names submitted to NDNH

are verified by SSA. Use first three characters of first name

and first five of last nameUse nicknames and alternate spelling

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Re-Hire/Contractor Submission14

31 states have legislation requiring new hire reporting of re-hires

Some states require contractor reporting Many employers report re-hires as new

hires regardless of legislative requirements

NDNH does not distinguish contractors/re-hires from new hires

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QW - Covered Employment Not every employee’s quarterly wages are

reported to SWAs Exception examples

Agricultural workers Domestic workers Individuals paid on commission (real estate,

insurance agents) Exceptions vary by state

Authorized Agencies Congress has given certain specific state and

federal agencies access to the NDNH for specific purposes: Social Security Administration Internal Revenue Service Department of Education Department of Housing and Urban Development State Workforce Agencies Department of Treasury-Financial Management Services Programs funded under Title IV-A Programs funded under Title IV-D (child support

enforcement programs)

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52 states have matched at least once with the NDNH

29 States have requested QW data in CY 2011

SWA - NDNH Participation

SWA - Data Matching Purpose18

Eligibility Fraud deterrence Skip tracing Re-employment Benefit Accuracy Measurement

(BAM) Ad-hoc reporting

SWA - Match Requirements

Weekly match against W4 and QW

SSNs (required) First and last name (required) SSN verification request

indicator

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New Hire: Passback data field Match indicator From date Through date Same state data

indicator

QW:Match codeSame state data indicatorFrom reporting periodThrough reporting period

Data Elements Submitted and Received

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W4 data for the requested dates or the entire NDNH file (2 years)

QW data for the requested periods or the entire NDNH file (2 years)

Verification possibilities:– Verified – name and SSN match– Non-Verifiable – records without sufficient

name data

Data Elements Submitted and Received

OCSE Contact Information22

Jennifer Morgan, SWA Liaison: Jennifer.morgan@acf.hhs.gov 202-401-6494 901 D Street, SW

4th Floor EastWashington, DC 20447

NDNH Team Representative: http://www.acf.hhs.gov/programs/

cse/newhire/contacts/ndnh_contacts.htm