1. NATIONAL DIRECTORY OF NEW HIRES Office of Child Support Enforcement Administration for Children and Families Department of Health and Human Services

2. 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)

3. 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 3

4. 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)

5. NDNH Reporting 5  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

6. NDNH Submission Recommendations 6  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.

7. 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

8. 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 8

9. Benefits of NDNH Data - 2010 9  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

10. Benefits of NDNH Data - 2011  FMS – 14% increase of AWG notices from FY2010 resulting in collections of $27.2 million  SSA – annual benefits of approximately $651.6 million in prevention of future overpayments and adjustments of incorrect payment amounts in the Supplemental Security Income program. 10

11. NDNH Monitoring 11  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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13. 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 name Use nicknames and alternate spelling 13

14. Re-Hire/Contractor Submission 14  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

15. 15 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

16. 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) 16

17. 17  52 states have matched at least once with the NDNH  29 States have requested QW data in CY 2011 SWA - NDNH Participation

18. SWA - Data Matching Purpose 18  Eligibility  Fraud deterrence  Skip tracing  Re-employment  Benefit Accuracy Measurement (BAM)  Ad-hoc reporting

19. SWA - Match Requirements  Weekly match against W4 and QW  SSNs (required)  First and last name (required)  SSN verification request indicator 19

20. 20 New Hire:  Passback data field  Match indicator  From date  Through date  Same state data indicator QW:  Match code  Same state data indicator  From reporting period  Through reporting period Data Elements Submitted and Received

21. 21  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

22. OCSE Contact Information 22  Jennifer Morgan, SWA Liaison:  Jennifer.morgan@acf.hhs.gov  202-401-6494  901 D Street, SW 4th Floor East Washington, DC 20447  NDNH Team Representative:  http://www.acf.hhs.gov/programs/cse/newhire/ contacts/ndnh_contacts.htm