New Reporting Requirements for ALL Principal Brokers
It has come to our attention that a provision included in a bill, SB 429, during the 2020 General Assembly session (dealing strictly with child support payment enforcement) included a requirement that all employers, as defined in the law, report their independent contractors to the Virginia New Hire Reporting Center.
The aim of the bill was to ensure that the Virginia Department of Social Services can accurately enforce child-support payment orders. This law was passed because there have been increasing reports of independent contractors failing to pay court-ordered child support. Since 1997, all employers have been required to submit information on the employees to the Virginia Department of Social Services, through the Virginia New Hire Reporting Center. The new law expands the pool of companies that must file with the Virginia Department of Social Services beyond just employers and now includes companies who engage independent contractors.
But now, due to the change in the law, there is ambiguity in expanded definition of “employer,” for purposes of child-support enforcement and the reporting requirements to the Commonwealth. Under the new law, you, as a principal broker may be the “employer” of all of your agents who are independent contractors.
What does this mean for you?
You should now report your new agents to the Virginia New Hire Reporting Center. A new agent is someone who has not previously contracted with you or someone who had previously entered into a contract and has now received payment under the agreement after receiving no payments for at least 60 consecutive days.
There is no fee to report, and you can file electronically, online, or through a variety of file exports.
FIRST, you must register as an employer. If you have already been reporting your wage employees, you can use your same registration. Registration can be found at https://va-newhire.com/register.
After you register, you can use their online form, or you can utilize their file export function. Their file export function can be found at https://va-newhire.com/ftp.
IMPORTANT DETAIL: As you engage new agents, you should report them to this site within 20 days of their contract.
If you are unsure of your status and whether you must report new agents to the Virginia New Hire Reporting Center, you should consult with your firm’s attorney.
You might also like…
The Impact of the PRO Act on Independent Contractors
By Anthony Reedy - April 5, 2021
A couple of weeks ago, the REALTOR® community was buzzing about the Protecting the Right to Organize (PRO) Act, which seemingly came from nowhere to pass the U.S.… Read More
A Booming Housing Market, but a Widening Homeownership Gap
By Dr. Lisa Sturtevant - April 5, 2021
One result of this pandemic housing boom is a widening homeownership gap. Brokers can help ensure equitable access to the benefits of homeownership. Taking a step back, even… Read More
Why Brokers are Essential to Successful Diversity, Equity, and Inclusion Efforts
By Leslie J. Frazier - March 2, 2021
Diversity, Equity, and Inclusion (DEI) initiatives can only achieve optimal success with a united front. All hands must be on deck to ensure that the efforts are created,… Read More