Social 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 Provisions
 More

child support to TANF families trigger for passport denial

 Reduced

 Collection

of arrearages owed to adult children

DRA Provisions
 Federal-level

matching of insurance

claims
 Both

parents to be considered as sources for medical support Federal funding

 Reduced

Electronic Payments for Child Support (e-payments)

e-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-payments
 State

e-payments average = 25% and Indiana average = 50%

 Illinois

e-payments
 Illinois,

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

 California

e-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-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/new hire/ employer/home.htm

e-payments
• Questions about e-payments? Contact Nancy Benner:
– Email: nbenner@acf.hhs.gov

California State Disbursement Unit Sacramento

California State Disbursement Unit
 California

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

Electronic Income Withholding Order Project (e-IWO)

e-IWO
 OCSE,

states, and employers developed a process to transmit the income withholding order electronically. public and private employers have provided input to the project.

 Both

e-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-IWO
 Employers

can report termination or suspensions Sums –

 Lump

– Child Support Enforcement Agencies can notify employers

e-IWO
 The

anticipated benefits are:

– Increased collections – Cost effective – Increased efficiency
 Next

Steps

– e-IWO Users Guide – National implementation

e-IWO
 Questions

about e-IWO? Contact Bill Stuart:
– Email: william.k.stuart@lmco.com

Revision of the Income Withholding Order (IWO)

Revision 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 IWO
 Comments

or ideas on revising the

IWO form? Contact Robyn Large:
– Email: rlarge@acf.hhs.gov

Multistate Employer Registration Letters

Multistate Employer Registration 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 Registration 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 Registration Letters
 Multistate

Employers

– A multistate employer hires and employs people in two or more states and conducts business within each state.

Multistate Employer Registration 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 Registration Letters
 All

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 Registration Letters
 Questions

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 Website

Employer Services Website

Employer Services Website

Employer Services Website

How Can an Employer ask OCSE a Question about Child Support?
 Log

on to OCSE Homepage

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

on Information for Employers

on Frequently Asked Questions in the right column

How Can an Employer Ask OCSE a Question about Child Support?
 Click  The

on any topic area

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 Gould Manager, Employer Services Federal Office of Child Support Enforcement