What Every Employer Must Know About Child Support

Robyn Large and Lynnetta Thompson

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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

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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

Ascentis Payroll• Helps manage garnishment processing

tasks.

• Multi-tier creditor garnishments can be automatically calculated based on employee pay per check.

• Multiple state creditor garnishment calculation rules can be entered

• Customize maximum withholding % for garnishments and child support orders per employee.

• Split funds between multiple creditors

• Send withheld amounts by a touch of a button.

Ascentis Payroll

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