Every Texas LLC that hires or rehires a W-2 employee must report that person to the Texas Attorney General's Office within 20 days of the hire date. This applies to your first employee and every one after — full-time, part-time, and seasonal. Miss the deadline and you owe $25 per late report, or $500 if the failure is found to be a conspiracy to avoid reporting.

Why new hire reporting exists

New hire reporting is required by both federal law (Personal Responsibility and Work Opportunity Reconciliation Act of 1996) and Texas state law. Its primary purpose is child support enforcement — state agencies use new hire data to locate parents who owe child support and issue income withholding orders quickly.

As an employer, compliance is mandatory. There is no exception for small businesses, LLCs without HR staff, or single-employee companies. Hiring employees also triggers Texas unemployment insurance tax, filed quarterly with the Texas Workforce Commission.

Who must report new hires in Texas

Any Texas LLC that pays wages to W-2 employees must report new hires. This includes:

• Full-time employees
• Part-time employees
• Seasonal workers
• Rehires — any employee who was separated for 60 days or more and is returning to work

What does NOT trigger new hire reporting:

• Independent contractors (1099 workers)
• Owner-members who receive draws but are not on payroll
• Temporary workers supplied by a staffing agency (the agency reports for them — confirm with your provider)

Step 1: Collect the employee's information

Before you can file the report, gather:

• Employee's full legal name
• Employee's home address
• Employee's Social Security number
• Employee's start date (first day of work)
• Your LLC's Federal Employer Identification Number (FEIN)
• Your LLC's legal name and address

You typically collect this information when the employee completes their W-4 on or before their first day of work.

Step 2: Report within 20 days of the hire date

The clock starts on the employee's first day of work, not the offer date or the date they signed a form. You have 20 calendar days to submit the report.

If you submit reports magnetically or electronically in batches: Federal rules allow employers submitting by magnetic media to file two reports per month, at least 12–16 days apart. For most small LLCs filing online or by mail, the 20-day deadline applies directly.

Step 3: Submit to the Texas Attorney General's Office

Online (recommended): Use the OAG's Employer New Hire Reporting portal at portal.cs.oag.state.tx.us/wps/portal/employerservices. This is the fastest method and provides confirmation.

By fax or mail: Download the new hire reporting form from the OAG portal and submit to the address or fax number listed. Mail submissions must be postmarked within the 20-day window.

Using payroll software: Most payroll services (Gusto, QuickBooks Payroll, ADP, etc.) offer automatic new hire reporting as part of their service. Verify with your provider that Texas reporting is enabled for your account.

Estimated time: 5–10 minutes per employee through the online portal.

Step 4: Keep a record of each submission

Save the confirmation number or a copy of each submitted report. If the OAG ever questions a report, you'll need proof of timely filing. Store these records for at least four years alongside your other employment records.

For a complete list of all Texas LLC compliance obligations — including which ones apply based on your business activities — see the Texas LLC compliance checklist.

Quick reference

FAQ

What happens if I don't comply with Texas new hire reporting?

You'll owe $25 for each report filed late. If the OAG finds that the failure to report was part of a conspiracy between you and the employee to avoid child support enforcement, the penalty jumps to $500 per instance. Repeated non-compliance can draw audits and additional scrutiny of your payroll practices.

Do I have to report rehires as well as new hires?

Yes. Any employee who returns to work after being separated from your company for 60 or more consecutive days must be reported as a new hire within the same 20-day window. A short break of fewer than 60 days generally does not require a new report.

What if I use a staffing agency or PEO?

Staffing agencies typically handle new hire reporting for workers they place with you, since those workers are technically employed by the agency. If you use a Professional Employer Organization (PEO), confirm in writing who is responsible for new hire reporting — the PEO or your LLC. Regardless of your arrangement, someone must report each employee, and the obligation follows the employer of record.

Is Texas new hire reporting the same as the federal requirement?

Federal law requires all employers to report new hires within 20 days of hire. Texas state law mirrors this requirement and is administered by the Texas Attorney General's Office. Reporting to the Texas OAG satisfies both state and federal obligations — you do not need to file separately with a federal agency.

Do I have to report independent contractors?

Federal law requires reporting of independent contractors paid $600 or more in a year in some states, but Texas does not currently require new hire reporting for 1099 contractors. Only W-2 employees (new hires and rehires) trigger the Texas reporting obligation.

Last verified: 2026-04-27

Sources: Texas Attorney General — Employer New Hire Reporting