Social Security’s 2006 National Payroll Reporting ForumSocial Security’s 2006 National Payroll Reporting Forum

The Changing World of

Child Support

May 11, 2006

Anne Gould

Manager, Employer Services Team

Federal Office of Child Support Enforcement

Deficit Reduction Act of 2005 (DRA)

DRA ProvisionsDRA Provisions

More child support to TANF families

Reduced trigger for passport denial

Collection of arrearages owed to adult children

DRA ProvisionsDRA Provisions

Federal-level matching of insurance claims

Both parents to be considered as sources for medical support

Reduced Federal funding

Electronic Payments for Child Support(e-payments)

e-paymentse-payments

E-payments benefit both employers and state child support enforcement agencies.

Facilitates more timely distribution of payments to families.

Most large employers and payroll service providers remit e-payments through the ACH network.

e-paymentse-payments

State e-payments average = 25%

Illinois and Indiana average = 50%

e-paymentse-payments

Illinois, Indiana, and Massachusetts currently require employers to remit child support payments electronically.

California and Florida will require employers to remit child support payments electronically effective October 1, 2006.

e-paymentse-payments

Web-Based Payments– Many states have developed web-based

payment services for the small- to medium- sized employer:

• AR, CT, FL, IA, ID ,IL, IN, LA County, MI, MO, NC, NE, ND, OH, OK, PA, TN, TX, VA and WA.

e-paymentse-payments

Resources to help you:– NACHA User Guide for Electronic Child

Support Payments (http://ecsp.nacha.org/)

– OCSE’s Tips for Employers– State E-Payments Contact – OCSE Employer Services Website

www.acf.hhs.gov/programs/cse/newhire/ employer/home.htm

e-paymentse-payments

Questions about e-payments? Contact Nancy Benner:

–Email: nbenner@acf.hhs.gov

California State Disbursement Unit - Sacramento

California State Disbursement California State Disbursement UnitUnitCalifornia passed legislation

requiring child support payments to be remitted electronically to the SDU.

Electronic Income Withholding Order Project (e-IWO)

e-IWOe-IWO

OCSE, states, and employers developed a process to transmit the income withholding order electronically.

Both public and private employers have provided input to the project.

e-IWOe-IWO

Standard record layouts and workflow documents were developed.

e-IWO allows options for flexibility for employers– Automate the acceptance and processing – Select manual intervention for reviewing

the e-IWO

e-IWOe-IWO

Employers can report termination or suspensions

Lump Sums – – Child Support Enforcement Agencies

can notify employers

e-IWOe-IWO

The anticipated benefits are: – Increased collections– Cost effective– Increased efficiency

Next Steps– e-IWO Users Guide– National implementation

e-IWOe-IWO

Questions about e-IWO?

Contact Bill Stuart:

–Email: william.k.stuart@lmco.com

Revision of the Income Withholding Order (IWO)

Revision of the IWORevision of the IWO

Income Withholding Order is the most effective means of collecting child support.

Standard OMB Income Withholding Order form expires May 31, 2007.– OCSE is establishing a workgroup for

the revision process.

Revision of the IWORevision of the IWO

Comments or ideas on revising the IWO form? Contact Robyn Large:

– Email: rlarge@acf.hhs.gov

Multistate Employer Registration Letters

Multistate Employer Multistate Employer Registration LettersRegistration Letters

What is New Hire Reporting?

– New Hire Reporting is the process by which you, as an employer, report information on your newly hired employees to a designated state agency shortly after the date of hire.

Multistate Employer Multistate Employer Registration LettersRegistration Letters

What is the benefit of new hire information?– New hire reports are matched against child

support records at the state and national levels to locate parents who owe child support.

– With New Hire Reporting, state child support enforcement agencies have the ability to issue IWOs more quickly.

Multistate Employer Multistate Employer Registration LettersRegistration Letters

Multistate Employers– A multistate employer hires and

employs people in two or more states and conducts business within each state.

Multistate Employer Multistate Employer Registration LettersRegistration Letters

Multistate employers may select one of the following reporting options:

– Report newly-hired employees to the various states in which they are working.

– Select one state where employees are working and report all new hires to that state's designated New Hire Reporting office.

Multistate Employer Multistate Employer Registration LettersRegistration LettersAll multistate employers reporting to

one state must register with HHS.

– Letters to be sent to 61,000 unregistered employers.

– Approximately 28,000 letters have been sent to registered multistate employers for updated information.

Multistate Employer Multistate Employer Registration LettersRegistration LettersQuestions about Multistate Employer

Registration? Contact Lynnetta Thompson:

– Email: lthompson@acf.hhs.gov

Employer Services Website

www.acf.hhs.gov/programs/cse/index.html

Click on: Information for Employers

Employer Services WebsiteEmployer Services Website

Employer Services WebsiteEmployer Services Website

Employer Services WebsiteEmployer Services Website

Employer Services WebsiteEmployer Services Website

How Can an Employer ask How Can an Employer ask OCSE a Question about Child OCSE a Question about Child Support?Support?Log on to OCSE Homepage

http://www.acf.dhhs.gov/programs/cse/

Click on Information for Employers

Click on Frequently Asked Questions in the right column

How Can an Employer Ask How Can an Employer Ask OCSE a Question about Child OCSE a Question about Child Support?Support?Click on any topic area

The employer can either review the list of FAQs to see if the question has already been asked and answered or #1 tells them: How can I ask a question if I don’t see it on the list? 

Anne GouldManager, Employer ServicesFederal Office of Child Support Enforcement

Anne GouldManager, Employer ServicesFederal Office of Child Support Enforcement