what every employer must know about child support · omb-approved income withholding for support...
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What Every Employer Must Know About Child Support
Robyn Large and Lynnetta Thompson
HOUSEKEEPING
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Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™, SPHRi™ recertification through HR Certification Institute's® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
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Robyn Large works with the federal Office of Child Support Enforcement (OCSE), Employer Services team, where she is involved with the OCSE Child Support Portal, EFT-SDU, and Lump Sums. She is also responsible for child support training and the development of publications and other materials to promote employer awareness of online applications.
Today’s PresentersRobyn Large
Lynnetta Thompson manages the Locate and National Directory of New Hires (NDNH) team for OCSE. She oversees new hire reporting, data submissions by states and federal agencies, and OCSE’s website. She also assists states in their outreach efforts and employers on issues involving new hire reporting.
Lynnetta Thompson
NEW HIRE REPORTING
Federal and state law require all employers to report newly hired and rehired employees to a State Directory of New Hires (SDNH) within 20 days of the employee’s first day of work; some states may require shorter timeframes
• An employee not previously employed; or • An employee previously employed but separated for at
least 60 consecutive days In FY2016 employers reported 65.6 million new hires Remember: Report new hires under the same Federal
Employer Identification Number (FEIN) used to report Quarterly Wages
NEW HIRE REPORTING
Multistate employers can choose how to report: • Report to the state where each individual works; or • Report all new hires to one state where you have
employees
MULTISTATE REPORTING
As an employer, what is your biggest challenge in reporting New Hires?
• Time consuming• Does not seem important• Difficult to process• Was not aware it was required
Poll
WHAT HAPPENS AFTER YOU REPORT NEW HIRE
INFORMATION?
Income Withholding Order (IWO)
WHAT IS THE IWO?
Standard form approved by the Office of Management and Budget (OMB) that must be used by any entity sending a withholding/garnishment request to an employer or other income payor to deduct child and medical support payments from a parent’s income
Courts, private attorneys, child support agencies, and others must send the OMB-approved Income Withholding for Support Order (IWO) to employers
In FY2016, $32.7 billion in child support was collected and 75% is attributed to IWO - thank you!
IWO - REGULAR ON IT’S FACE? Reasons for an employer to return an IWO:
• Payments not ordered to the SDU with a few exceptions
• OMB-approved form is not used• Form is missing information you need• Form is altered• Amount is not a dollar amount• A copy of the underlying child support order is
needed but not included
More information in the IWO instructions If the IWO is not regular on its face, check the “Return to Sender” box and
return it to the sender
IWO REVISIONS
Proposed changes include the following:• Add an optional field for the employee/obligor’s date of birth• Clarify that a One-Time Order/Notice for Lump Sum Payment is sent after
notification of an upcoming lump sum payment by an employer or other source• Reword the Consumer Credit Protection Act (CCPA) limit to clarify that one specific
percentage must be entered by the sender in the correct data field• Rewrite text regarding tribal withholding limits and add links to addresses and
contacts for tribes• Change FIPS Code to Locator Code• Add a link to the OCSE Child Support Portal allowing employer reporting and
contact updates• Add emphasis to fields that are optional and not required• Add statement on encryption requirements• Other minor text changes
INCOME WITHHOLDING ORDER
HOW CAN YOU GET RID OF ALL THAT PAPER AND SAVE
TIME & MONEY?
e-IWO
e-IWO is an efficient and cost-effective way to electronically exchange IWO information between child support agencies and employers. Gets payments to families quicker Speeds the processing time from IWO preparation to
employer processing Reduces errors from manual processing Eliminates cost of postage and processing paper documents Provides ongoing communication between child support
agencies and employers
e-IWO
The FEIN is the key to passing e-IWO data between the state and employer
1. Do you receive a large number of IWOs each week?
2. Do you have IT resources available?
3. Do you have available time to implement?
FACTORS TO CONSIDER WHEN DECIDING HOW TO IMPLEMENT E-IWO
System-to-SystemIf you receive a significant number of IWOs per week or month and have available IT resources for a three-to-five month programming effort, “System-to-System” may be the option for you.
No ProgrammingIf you do not have IT resources, the fillable PDF or XLS spreadsheet are your best options.
The No Programming Option (NPO) provides you with an electronic version of the IWO in portable document format (PDF) along with a prefilled acknowledgement PDF or prefilled acknowledgement spreadsheet. You can complete an acknowledgement very quickly and easily.
e-IWO: YOUR CHOICE
• Check “Accept” or “Reject”
• Supply a reason code if rejecting
• Save PDF
PDF ACKNOWLEDGEMENT
All states and territories are using e-IWO except Guam, South Carolina, and the Virgin Islands 7,396,183 orders processed by e-IWO since 2005!
For more information about e-IWO contact Bill Stuart:• Email: eiwomail@acf.hhs.gov• Phone: 410-200-4695
E-IWO - MORE INFO?
Poll
As an employer, what is your biggest obstacle in processing IWO’s in an electronic format (e-IWO)?
• Programming costs• Programming time• Have not researched options
Employer Services Portal
Applications
Employer Services Portal Applications
Employers may use the Portal to provide information: Employer Information Updates
• Provide contacts, addresses, and other information about their company that is shared with child support agencies
• Employers with employees in two or more states may register with OCSE to report all new hires to one state
Employer Reporting• Employees who are eligible to receive a lump sum payment
and who have terminated employment
CHILD SUPPORT PORTAL
SELECT APPLICATION Employer
Information Updates Employer
Reporting
EMPLOYER INFORMATION UPDATES (EIU)
View and update name and address information by FEIN All FEINs are listed in the Your FEIN(s) drop-down list
EIU – NAMES AND ADDRESSES
EIU – NAMES AND ADDRESSES
EIU – SOURCE
The Source column indicates:• N - New Hire• QW - Quarterly Wage• E - Employer Provided• D - Marked as “Do Not Use”
by Employer• O - Address from organization
profile
It is important that employers report these addresses in a consistent, standardized format
THIS IS WHERE YOU INPUT YOUR SLIDES
EIU- ADDRESS TYPE
• Select the check box in the Edit column to select the Address Type and to edit existing addresses
Address Type - States use this address for communications –important to note the correct payroll/IWO address
EIU – EDIT ADDRESS
Select DO NOT USE if this address is not used for child support
documents and/or is a duplicate or is no longer a valid address
THIS IS WHERE YOU INPUT YOUR SLIDES
SUPPLEMENTAL INFORMATION
All FEINs are listed in the Your FEIN(s) drop-down list
Select a FEIN to add supplemental information
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION
POINTS OF CONTACT
POINTS OF CONTACT
MULTISTATE REPORTING
MULTISTATE REPORTING MANAGE RELATIONSHIPS
MANAGE RELATIONSHIPS –ADD/EDIT COMPANY
POINTS OF CONTACT
EDIT CONTACT INFORMATION
CERTIFICATION
All FEINs are listed in the Your FEIN(s) drop-down list
Select a FEIN to review the certification information
CERTIFICATION
When company information is up to date certify each FEIN or select Certify All.
Notification is sent every six months to make sure all information is still current.
Poll
As an employer, what is your biggest obstacle to signing up to use the OCSE Child Support Portal?
• Currently using the e-IWO process• Prefer manual process• Was not aware of this application• Other, please explain
SELECT APPLICATION Employer
Information Updates Employer
Reporting
EMPLOYER REPORTING
EMPLOYER REPORTING
Employer Reporting• Lump Sum Entry – report employee pending lump sum• File Upload – report multiple employees pending lump sums• File Errors – view file errors• Termination Entry – report employee termination or that the person never
worked for you• Reporting History – view reported information for 60 days• Glossary – view common child support terms
LUMP SUM REPORTING OVERVIEW
STATES
Contact employers to withhold child support, when applicable
FEDERAL OFFICE OF CHILD SUPPORT ENFORCEMENT (OCSE)
Matches employees to individuals who owe child support and notifies states when there is a match
EMPLOYERS
Report employee pending lump sum payouts
Payout Type:
• Bonus
• Cash Service Award
• Commission
• Insurance Settlement
• Life Insurance Proceeds
• Retroactive Pay Increase
• Severance
• Sign-on Bonus
• Vacation Pay
• Workers’ Compensation
• Other
LUMP SUM ENTRY
LUMP SUM ENTRY
Payout Types:Bonus, Cash Service Award, Commission,
Retroactive Pay Increase, Severance, Sign-on
Bonus, Vacation Pay and Workers’ Compensation
Some states require notification prior to making a lump sum payment to a parent who owes child support; you must follow applicable state law concerning hold periods.
TERMINATION ENTRY
Employers must report terminations to the child support agency that issued the IWO.
FILE UPLOAD
Reporting Type:Lump Sum
Termination
• Templates are pre-formatted in Excel• Required columns are in blue
Once the file is uploaded you receive notification if the file was processed successfully or if there are file errors.
FILE ERRORS
Click Download
REPORTING HISTORY
Print –hardcopy or save to PDF
Enter all questions into the “Questions”
section of the GoToWebinar panel on your computer
screen
QUESTIONS
The use of this seal confirms that this activity has met HR Certification Institute's® (HRCI®) criteria for recertification credit pre-approval.
Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™, SPHRi™ recertification through HR Certification Institute's® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
*This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM.
*This webinar has been approved by the APA for 1 (one) RCH credit.
Be watching using YOUR
unique URL for login
Stay on the webinar, online for the full 60
minutes.
Certificates delivered by
email no later
HOUSEKEEPING
than 6/24/17
OCSEEmployer Services Team
Sherri Grigsby, Federal Manager Sherri.Grigsby@acf.hhs.gov
Robyn Large Robyn.Large@acf.hhs.gov
Cindy Holdren Cynthia.Holdren@acf.hhs.gov
Andrew Large Andrew.Large@acf.hhs.gov
Bill Stuart (e-IWO) William.Stuart@acf.hhs.gov
National Directory of New Hires Team
Lynnetta Thompson, Federal Manager Lynnetta.Thompson@acf.hhs.gov
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