Every Texas employer must report each new hire and rehire to the Texas Attorney General's Office within 20 days of the employee's start date — no exceptions for small businesses or LLCs. The requirement is mandated by both federal law and Texas state law, primarily to enforce child support orders. Miss the deadline and you owe $25 per unreported employee; a conspiracy to avoid reporting carries a $500 penalty.

Quick reference

Step 1: Determine whether you must file

Texas new hire reporting is required for every employer that pays W-2 wages in Texas — including:

• LLCs, corporations, partnerships, and sole proprietorships
• Nonprofits and tax-exempt organizations
• State and local government agencies
• Employers hiring workers remotely who are based in Texas

The rule applies regardless of how many employees you have. A one-person LLC hiring its first employee must file just as a 500-person company must.

Who is NOT covered: Independent contractors (1099 workers) are generally not reportable. However, if you've been paying a worker as a contractor and then formally hire them as an employee, you must report them within 20 days of their new classification.

Common mistake: Assuming "new hire reporting" only applies once you reach a certain headcount. There is no minimum — one employee triggers the requirement.

Rehires count too. If you bring back a former employee after a separation of any length, you must file a new report for that rehire within 20 days.

Step 2: Gather the required information

Before you file, collect the following information for each new hire:

Employee information required:

• Full legal name
• Home address (street, city, state, ZIP)
• Social Security Number (SSN)
• Date of hire (first day of work, or first day of paid leave if that comes first)

Employer information required:

• Business legal name
• Business address
• Federal Employer Identification Number (EIN)

Optional but helpful:

• Employee's date of birth
• State where income tax is withheld (for multi-state employers)

Common mistake: Using the offer letter date or the date you ran the first paycheck as the "date of hire." Texas law defines the date of hire as the employee's first day of work (or first day receiving compensation, whichever is earlier). Use that date, not your internal paperwork date.

If you do not yet have an EIN, get one free at IRS.gov before reporting your first hire. You cannot file without it.

Step 3: Submit the report online

The fastest way to file is through the Texas Attorney General's employer services portal at portal.cs.oag.state.tx.us/wps/portal/employerservices.

Here is how to submit:

1. Navigate to the portal. Click "Report New Hires" on the AG's employer services homepage.
2. Enter your EIN. The system will look up your registered employer account if you have reported before. First-time filers will need to create an account.
3. Enter employee data. Fill in the employee's name, SSN, address, and date of hire. The form takes about 3 minutes per employee.
4. Review and submit. Confirm the data and submit. You will receive an on-screen confirmation.
5. Save your confirmation. Print or save a copy of the submission confirmation as proof of timely filing.

Alternative filing methods:

• Fax: Fax a completed W-4 or equivalent form to the Texas AG's office at 1-800-732-5015 (toll-free)
• Mail: Send employee data to Texas New Hire Reporting, P.O. Box 149224, Austin, TX 78714-9224
• Magnetic tape or file transfer: Large employers with payroll systems can submit bulk electronic files; contact the AG's office for format specifications

Online is strongly recommended — it is the fastest, provides immediate confirmation, and eliminates mail delay risk.

Estimated time: 3–5 minutes per employee online.

Step 4: Understand when to report rehires

A rehire is a former employee who is brought back to work after any gap in employment. Texas treats rehires exactly like new hires — you must file a new report within 20 days of the rehire date.

This catches a common oversight: employers who assume a returning employee from six months ago is already "in the system" and skip the report. The AG's system does not carry over prior reports for returning employees. Every new employment relationship, no matter how short the prior gap, requires a fresh report.

What counts as a rehire:

• Seasonal or part-time workers returning after a layoff or off-season
• Former full-time employees returning after resignation or termination
• Workers who left and came back after any length of absence

What does NOT require a new report:

• A leave of absence (FMLA, medical leave, paid parental leave) — the employment relationship never ended
• A change in job title, pay rate, or department — no new hire occurred

Step 5: Set up a process for ongoing compliance

Unlike franchise tax or sales tax, new hire reporting does not have a single annual deadline. It is triggered every time you bring on a new or returning employee, so you need an internal process to catch it automatically.

Practical approaches:

• Add it to your onboarding checklist. Put "submit new hire report" as a step in your standard onboarding process alongside collecting the W-4, I-9, and direct deposit form.
• Use payroll software. Most payroll platforms (Gusto, ADP, QuickBooks Payroll) can automatically submit Texas new hire reports on your behalf when you add a new employee. Confirm with your provider that this feature is enabled for Texas.
• Set a calendar trigger. If you use a manual process, create a recurring task whenever a new employee's start date is entered: "Submit TX new hire report by [start date + 20 days]."

Common mistake: Relying on your payroll provider without confirming the feature is active. Some platforms offer new hire reporting as an add-on or have it disabled by default. Check your payroll settings and verify at least once.

Frequently asked questions

Who is required to file a new hire report in Texas?

Every employer in Texas that hires or rehires a W-2 employee must file a new hire report — regardless of company size or industry. This includes LLCs, sole proprietors, corporations, nonprofits, and government entities. There is no minimum employee threshold.

How long do I have to report a new hire in Texas?

You must submit the new hire report within 20 days of the employee's first day of work. The clock starts on the first day worked, not the offer letter date or payroll date. File early — there is no benefit to waiting.

What happens if I miss the Texas new hire reporting deadline?

The penalty is $25 per employee not reported on time. If the employer and employee conspire to avoid the reporting requirement, the penalty is $500. Neither penalty requires a conviction — the AG's office can assess them administratively.

Do I need to report independent contractors in Texas?

Generally, no. Texas new hire reporting applies to W-2 employees, not 1099 independent contractors. If a worker is later reclassified as an employee, report them within 20 days of that reclassification date.

Can my payroll company file new hire reports on my behalf?

Yes. Most payroll providers (Gusto, ADP, Paychex, QuickBooks Payroll) can file Texas new hire reports automatically when you add a new employee to your payroll system. Verify that this feature is enabled in your account settings — not all providers activate it by default.

Not sure what else your Texas LLC owes?

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Last verified: 2026-05-21

Sources: Texas Attorney General — New Hire Reporting, Texas Labor Code § 234.101, U.S. Department of Health & Human Services — New Hire Reporting