South Carolina Code of Laws
Chapter 5 - Public Aid, Assistance And Relief Generally
Section 43-5-598. Definitions; new hire directory; employee to file report; access to information in directory.

(A) As used in this section:
(1) "Business day" means a day on which state offices are open for regular business.
(2) "Date of hire" means the first day the employee works for which the employee is entitled to compensation from the payor of income.
(3) "Department" means the Department of Social Services, or its designee.
(4) "Employer" includes a governmental entity and labor organization and means a person doing business in this State for whom an individual performs a service, of whatever nature, as the employee of the person and except that:
(a) if the person for whom the individual performs services does not have control of the payment of wages for the services, the term "employer" means the person having control of the payment of wages; and
(b) in the case of a person paying wages on behalf of a nonresident alien, individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term "employer" means that person.
(5) "Labor organization" means an organization in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. Hiring halls, which refer individuals for jobs with employers, are "labor organizations" to the extent that they exist pursuant to an agreement with an employer engaged primarily in the building and construction industry under Section 8(f)(3) of the National Labor Relations Act.
(6) "New hire" includes an individual newly employed or an individual who has been rehired who was separated for at least sixty consecutive days or has returned to work after being laid off, furloughed, separated, granted leave without pay, or terminated from employment for at least sixty consecutive days.
(B) By October 1, 1998, the department shall establish a state directory of new hires which shall contain information supplied in accordance with subsection (C) by employers on each new hire.
(C) Beginning October 1, 1998, an employer who hires an employee who resides or works in this State shall report the hiring of the employee to the state directory of new hires within twenty calendar days of the hiring of the employee. However, in the case of an employer transmitting reports magnetically or electronically, these reports must be transmitted semi-monthly, if necessary, not less than twelve nor more than sixteen days apart. The report submitted shall contain:
(1) the employer's name, address, and federal identification number assigned to the employer under Section 6109 of the Internal Revenue Code of 1986; and
(2) the employee's name, address, and social security number.
(D) For purposes of this section, an employer must not report information on an employee of a federal or state agency performing intelligence or counterintelligence functions if the head of the agency has determined that reporting pursuant to this section with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.
(E) An employer that has employees who are employed in two or more states and that transmits reports magnetically or electronically may comply with subsection (C) by designating one state in which the employer has employees to which the employer will transmit the report required by subsection (C) and transmitting the report to that state. An employer that transmits reports pursuant to this subsection shall notify the Secretary of the United States Department of Health and Human Services in writing as to which state the employer designates for the purpose of sending reports.
(F) Each report required by subsection (C) must be made on a W-4 form or, at the option of the employer, an equivalent form and may be transmitted by first-class mail, facsimile, magnetically, or electronically. Magnetic and electronic submissions must be in a format prescribed by the department.
(G) If an employer fails to report the hiring of an employee pursuant to this section, the employer is subject to a civil penalty of no more than:
(1) twenty-five dollars for the second offense and every offense thereafter unless the employer can demonstrate good cause for not reporting the hiring; or
(2) five hundred dollars for each and every offense, if the failure is the result of a conspiracy between the employer and the employee not to supply the required report or to supply a false or incomplete report. Fines imposed pursuant to this subsection must be enforced as provided for in Section 63-3-530(A)(43) and distributed according to Section 63-17-520.
(H) Information must be entered into the data base maintained by the state directory of new hires within five business days of receipt from an employer pursuant to subsection (C).
(I) No later than May 1, 1998, the department shall conduct automated comparisons of the social security numbers reported by employers pursuant to subsection (C) and the social security numbers appearing in the records of the State Case Registry created pursuant to Section 43-5-610 for cases being enforced under the federally-approved child support program administered by the department.
(J) When an information comparison conducted under paragraph (I) reveals a match with respect to the social security number of an individual in the records of the State Case Registry, the state directory of new hires shall provide the department with the information reported by the employer pursuant to subsection (C).
(K) Within two business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the department shall transmit a notice to the employer of the employee directing the employer to withhold from the income of the employee an amount equal to the monthly, or other periodic, child support obligation, including any past-due child support obligation, of the employee, unless the employee's income is not subject to withholding pursuant to Article 11, Chapter 17, Title 63.
(L) Within three business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the state directory of new hires shall furnish the information to the national directory of new hires.
(M) The state directory of new hires shall include reports received from the Department of Employment and Workforce pursuant to Section 43-5-620. The state directory of new hires shall furnish these reports, on a quarterly basis, to the national directory of new hires by the dates, in the format, and containing the information the Secretary of the United States Department of Health and Human Services specifies in regulations.
(N) Information maintained in the state directory of new hires and national directory of new hires may be utilized for these purposes:
(1) The department shall use information received pursuant to subsection (I) to locate individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations and may disclose this information to a public or private agency that is under contract with the department to carry out these purposes.
(2) The department shall have access to information reported by employers pursuant to subsection (C) for purposes of verifying eligibility for these state administered programs:
(a) Temporary Assistance for Needy Families;
(b) Medicaid under Title XIX of the Social Security Act;
(c) food stamps;
(d) unemployment compensation benefits; and
(e) any state program under a plan approved under Title I, X, XIV, or XVI of the Social Security Act.
(3) The Department of Employment and Workforce shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the employment security program.
(4) The Workers' Compensation Commission or its designee shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the workers' compensation program.
(O) An employer who in good faith discloses information pursuant to this section is not subject to civil or criminal liability on account of the disclosure.
(P) This section remains in effect until the federal mandate requiring a mandatory new hire reporting program is repealed.
HISTORY: 1997 Act No. 71, Section 44, eff June 10, 1997; 1997 Act No. 133, Section 15, eff June 11, 1997; 1999 Act No. 100, Part II, Section 105, eff June 30, 1999; 2013 Act No. 53, Section 3, eff June 7, 2013.

Editor's Note
1997 Act No. 133, Section 17, provides as follows:
"Section 20-7-1295 and Section 43-5-598, as added by this act, are the last expressions of the General Assembly notwithstanding any similar provisions passed in any other act of this year. The General Assembly finds these provisions of this act to be controlling and directs the Code Commissioner to codify Sections 20-7-1295 and 43-5-598, as added by this act."
1997 Act No. 71, Section 44, ratified June 4, 1997 and approved by the Governor June 10, 1997, added Section 43-5-598; 1997 Act No. 133, Section 15, ratified June 9, 1997 and approved by the Governor June 11, 1997, effected the same code section, but, in subsection (A)(4), substituted "governmental" for "government"; and, in subsection (G)(1), inserted "unless the employer can demonstrate good cause for not reporting the hiring".

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