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Reporting Independent Contractors under the "new hire" Program

Posted by Admin Posted on Oct 21 2016

 

You are probably already aware of when you have to report new employees to the NH Employment Security but were you aware of the rules relating to independent contractors and when you have to let NH Employment Security know about them?  Here’s some information.   

 

As it specifically relates to the reporting of independent contractors on the new hire report form:

 

  • There is no reporting requirement if the independent contractor you use has employees.  This is regardless of the type of entity of the contractor. They can be an LLC, a sole proprietor or a Corporation.  If the contractor has employees you do not need to report the contractor.  Employee means any employee, even if it’s just an office worker.
  • If the independent contractor does not have employees you must report them on the new hire report if you have paid them more than $2,500 in labor during the calendar year.  This must be done within 20 days of meeting that threshold.  For example: If you pay a contractor $500 in labor on May 1st you are not required to report them as a new hire.  If on September 10th, you pay that same contractor an additional $2,200 in labor you must now report them as a new hire within 20 days of September 10th since the cumulative amount you have paid them for the year exceeds $2,500 on September 10th.
  • This independent contractor reporting requirement is an annual filing requirement for all contractors. You must report them on a new hire report each year if and when they exceed $2,500 in labor.  It doesn’t matter if you reported them in any previous year. This annual filing requirement is different than employees, where you only file the new hire report once for an employee.

 

Please don't hesitate to call with any questions.

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