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Employers & the Child Support Program; A Partnership that Benefits our Nation’s Children
Speaker: Sherri Grigsby, Federal Office of Child Support Enforcement
Sponsored by:
RCH CREDIT
‣ This is an APA & HRCI approved program for 1 (one) RCH credit
‣ You must attend the entire 1-hour course.
‣ Within 30 calendar days of today, you will be sent a certificate with the program course code upon completion for your file folder.
4
A
Child
Support
Story
Contents at a glance
• Child support program background and statistics• New hire reporting• Standard response to Verification of Employment
(VOE)• Income Withholding for Support Order/Notice (IWO) • Electronic Income Withholding (e-IWO)• Lump sum reporting/Debt Inquiry Service• Electronic payments (e-Payments)• Employer services website update
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Once Upon a Time, there were two mice who were in love….
7
The Happy Family
Ricky Mouse
loved his wife
Winnie so much
that he used to
bring her flowers
and chocolates.
They had three
children, triplets,
Harley, Larry and Darrell.
The Break Up
Unfortunately, not all fairy tales have a happy ending.
For Sale by
Owner
After the break up, Ricky was hitting the cheese pretty hard and lost his job.
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Applying for Child Support
How could
Winnie be sure
Ricky would pay
child support?
She found lots of
information
about the child
support program
on OCSE’s
website.
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The Child Support Program
• Established under Title IV-D of the Social Security Act
• Charged with locating noncustodial parents, establishing paternity and child support orders, enforcing child and medical support orders
• Partnership between the public and private sectors
11
Roles and Responsibilities• Federal Office of Child Support Enforcement
(OCSE)
• State Child Support Agencies
• Employers
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Why is the child support program important?
• The poverty rate for children under age 18 increased to 22% from 20.7% from 2009 to 2010
• The number of children living in poverty increased to 16.4 million from 15.5 million during the same period
• Children comprise 36% of people living in poverty but only 24% of the general population
13
Largest source of payments? Employers/income withholders!
• In FY 2011– Accounted for nearly 70% of the child support
collected
– Reported 48.6 million new hires
– Enrolled millions of children in health insurance plans
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Ricky Finds a New Job
Ricky saw an ad
in classified
section looking
for a stunt
double for a very
famous mouse
actor and the
worksite was
none other than
the Magic Castle.
Ricky got the job
and his new
employer reported
the new hire to the
State of Florida.
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New Hire Reporting Requirements
• Mandatory elements1. Employer Name 2. Employer Address 3. Federal Employer Identification Number (FEIN)4. Employee Name 5. Employee Address 6. Employee Social Security Number (SSN) 7. Date of Hire
• Some states may require additional elements
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New Reporting Requirements
• Trade Adjustment Assistance Extension Act of 2011 amended section 453A(a)(2) of the Social Security Act, effective April 21, 2012– Changed the definition of Newly Hired Employee to an
employee who—• (i) has not previously been employed by the employer;
or• (ii) was previously employed by the employer but has
been separated from such prior employment for at least 60 consecutive days
17
Independent Contractor (IC) Reporting
• 14 states and 1 territory require IC reporting– AL, AK, CA, CT, GU, IA, MA, ME, MI, MN, NE, NH,
NJ, NV and OH• Information to report– Most states require the same information on the
W-4 form (name, address, TIN - some states require additional data)
– Accounts payable may have this information
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Establishing the Child Support Order
When the
Florida Child
Support Agency
received the new
hire record
for Ricky, they
sent a Verification of
Employment to
the employer to
gather
information necessary to establish the child support order.
Verification of EmploymentVOE
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Verification of Employment (VOE)
• Why must states send VOEs?– Obtain wage information when establishing or
modifying an order
– Obtain health insurance information
• Standard response to VOE
• See our websitehttp://www.acf.hhs.gov/programs/cse/newhire/
employer/publication/forms/voeform.pdf
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Which states accept the standard VOE response form?
• Accepting the form
• Not accepting the form
• Other states undecided
AL, AK, AZ, AR, CA, CO, GA, HI, IN, IA, KS, KY, ME
MA, MN, MT, NV, OK, OR, PA SD, TX, VT, WA, WV
CT, FL, ID, MI, MS ,MO NE, NY, ND, TN, VA
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Income Withholding
Using the VOE,
FL established a
child support
order based on
Ricky’s income.
FL issued an IWO
to the employer.
Unfortunately
for Ricky, during
the
time he was hitting the cheese, he got behind on some other payments including his student loans and his credit cards.
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Income Withholding Order• Income withholding is the most effective means
of collecting child support• Revised IWO approved by Office of
Management and Budget (OMB) May 2011
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IWO Changes*
• Checkbox for employer to return IWO to sender for following reasons• Payment is not directed to a State Disbursement
Unit (SDU)• Form does not contain all information for employer
to comply with order• Form is altered or contains invalid information• Amount to withhold is not a dollar amount• Sender has not used the OMB-approved form
(effective May 31, 2012)• Copy of underlying order is required and not
included *Does not reflect all changes to the revised IWO
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Need More IWO Information?
• Action Transmittal 11-05 provides guidance to employers– IWOs issued on or after 05/31/12 (i.e., new IWOs)• Payment not directed to SDU• Use of OMB-approved IWO
– IWOs issued before 05/31/12 (i.e., IWOs already processed by employer)*• Payment not directed to SDU• Use of OMB-approved IWO
* Exceptions
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How do employers process IWOs when…
• there is already an IWO in place from another state for the same children?
• there is already an IWO in place for another family?
• there are other garnishments from creditors and/or government entities?
• the IWO is from a state other than the employer’s state?
• the IWO directs payment to the CP?
Employers’ Best Practices for Redirecting Payments
• Contact the SDU – see matrix: http://www.acf.hhs.gov/programs/cse/newhire/employer/contacts/contact_map.htm
• Provide copies of all orders to the SDU
• Problems?Contact Cindy Holdren
[email protected] or 240-676-2808
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IWO Training Presentation
• Visithttp://www.acf.hhs.gov/programs/cse/newhire/employer/
publication/training/iwo_training.pdf
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Remitting Payments
Once the
employer started
withholding child
support from
Ricky’s wages,
the fastest, most
efficient way to
get the money to
the child support
agency was to send the payments electronically.
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Payments
• Federal law requires all employer-withheld payments (with a few exceptions) be sent to the SDU
• Contact the SDU to redirect payments for a private, non-IV-D order
• See our website for SDU contactshttp://www.acf.hhs.gov/programs/cseClick on “Employer Information”
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Electronic Payments• Cheaper, faster, safer, more accurate• Most large employers and payroll service
providers remit e-Payments through the ACH network
• Most payroll software supports EFT for child support
• e-Payments from employers to SDUs are increasing
2009 2010 2011 46% 53% 56%
16 States/Territories Requiree-Payments for Child Support
California, Florida, Guam, Illinois, Indiana, Iowa, Massachusetts, Nebraska, Nevada, North Dakota, Ohio, Oregon, Pennsylvania, Texas, Virginia and West Virginia 31
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Web-based Payments
• 38 states have web-based payment services–AR, AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS,
KY, LA, MA, MD, MI, MN, MO, MT, NC, NE, ND, NH, NJ, NY, OH, OK, OR, PA, RI, TN, TX, UT, VA, WA, WI and WV
• Designed for small to mid-sized employers
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Tribal IWOs
Winnie moved
on with her life
and decided to
move back with
her tribe on the
reservation.
She closed her
child support
case in FL
and opened a case with the tribal child support agency. The tribal CS agency issued an IWO to the employer.
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Processing Tribal IWOs
• Do tribes have their own child support programs? – Yes. 42 tribes operate their own federally-funded
child support programs.• Should I honor an IWO from a tribe? – Yes. You are required to honor an IWO sent from
a tribal IV-D agency just as you would if it were sent from a state IV-D agency.
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More on Tribal IWOs
• Do tribal IV-D agencies use the standard, federal income withholding order form?– Yes. IV-D tribal agencies are required to use
the standard, federal form.• Where should I send payments for an order
that comes from a tribe?– Send them to the payee identified on the
order.
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Fast Forward—2 Years in the Future
Winnie decided
to move back to
Orlando to be
closer to the Magic
Castle where she
was ableto find a job as a
double for a
famous mouse
actress.
She reopened her case in FL and FL issued an e-IWO to Ricky’s employer.
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What is e-IWO?
• States electronically send and employers electronically acknowledge IWOs
• One “point of contact”• Federal Employer Identification Number (FEIN)
is key • Handles terminations, lump sum payments
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24 States Using e-IWO—Represents over 70% of the child support caseload!
• Arizona• California • Colorado• District of
Columbia• Idaho• Illinois• Indiana • Massachusetts• Michigan • Missouri• Nebraska • New Jersey
• New York• North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania• Tennessee• Texas• Virginia • Washington • West Virginia
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Want more information about e-IWO?
Contact:Bill Stuart
e-IWO presentation available at Ascentis.com, under
Resources and 2012 Webinar Archive. Or click here
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Ricky Gets a Bonus!
Last year, Ricky
suffered an injury
which prevented
him from working
for several
months and he
got behind in his
child support
payments.
After returning to work and performing exceptionally well in a feature film, he was eligible to receive a bonus! His employer used the Debt Inquiry Service to notify FL about the payout.
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Debt Inquiry Service (DIS)
• Enables employers to notify child support agencies prior to awarding a lump sum payment
• One-by-one or batch file reporting• Contact us if interested in participating
-Success Story-An employer received a response in 45
minutes!
DIS
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30 States participating in Debt Inquiry
• Arkansas • California • Colorado • Connecticut • District of Columbia • Florida • Guam • Idaho • Illinois• Indiana • Iowa • Kansas • Kentucky • Maine • Minnesota
• Missouri • Montana • Nebraska • New Jersey • New Mexico • New York • North Dakota • Oklahoma • Oregon • Pennsylvania • Puerto Rico • Tennessee • Texas • Utah • Virginia
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The Kids Are All Grown Up!
In June, the
triplets graduated from
high school and
Ricky’s employer
received a termination
notice for the child
support order
since all of Boys were also
18.
The triplets were accepted to Mouse University where they would study graphic design with a focus on character animation.
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www.acf.hhs.gov/programs/cse/newhire/employer/home.htm
Visit our Website!
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Preview of new OCSE website
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Employer Service Contacts
Sherri Grigsby [email protected] 202-401-6114
Nancy Benner [email protected] 202-401-5528
Lynnetta Thompson [email protected]
Bill Stuart (e-IWO) [email protected] 518-399-9241
Cindy [email protected]
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The End.
Thank you!
Q&A
RCH Credit
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‣ 1 (one) RCH Credit – APA & HRCI
‣ Certificate emailed by July 25th.
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pro-rated
