Employers _ the Child Support Program; a Partnership

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Employers _ the Child Support Program; a Partnership Powered By Docstoc
					Employers & the Child Support
Program; A Partnership that
Benefits our Nation’s Children




               Speaker: Sherri Grigsby, Federal Office of
               Child Support Enforcement
Sponsored by:
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          4
          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
Once Upon a Time, there were
two mice who were in love….




                               6
   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.

                       7
        The Break Up


                          After the break up,
 Unfortunately, not      Ricky was hitting
all fairy tales have a   the cheese pretty
happy ending.            hard and lost his job.




   For Sale
   by Owner
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.

                             9
     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


                                                10
      Roles and Responsibilities
• Federal Office of Child Support Enforcement
  (OCSE)

• State Child Support Agencies

• Employers




                                                11
       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
                                                12
   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


                                                    13
   Ricky Finds a New Job


                               Ricky got the job and
                    d in
 Ric  ky saw an a             his new employer
                   n
cla ssified sectio            reported the new hire to
                    nt
looki  ng for a stu           the State of Florida.
                  ry
 do uble for a ve
 famous    mouse actor
                         as
  and th  e worksite w
  none ot   her than the
   M  agic Castle.

                                                     14
New Hire Reporting Requirements
• Mandatory elements
    1.   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
                                                         15
    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

                                                           16
     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


                                                      17
  Establishing the Child
     Support Order

                         information necessary
 When the Florida
                         to establish the child
Child Support
                         support order.
Agency received the
new hire record
for Ricky, they sent a
                             Verification of
                                  VOE
                              Employment

Verification of
 Employment to the
 employer to gather

                                                  18
 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 website
  http://www.acf.hhs.gov/programs/cse/newhire/
  employer/publication/forms/voeform.pdf
                                                   19
Which states accept the standard VOE
          response form?
• Accepting the form
  AL, AK, AZ, AR, CA, CO, GA,   MA, MN, MT, NV, OK, OR,
  HI, IN, IA, KS, KY, ME        PA SD, TX, VT, WA, WV

• Not accepting the form
  CT, FL, ID, MI, MS ,MO        NE, NY, ND, TN, VA



• Other states undecided

                                                          20
   Income Withholding


                          time he was hitting
 Using the VOE,           the cheese, he got
                      d
FL established a chil     behind on some other
support order based       payments including
on Ricky’s income.        his student loans and
FL issued an IWO to       his credit cards.
 the employer.
  Unfortunately for
 Ricky, during the


                                                  21
     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




                                             22
                       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
                                                       23
*Does not reflect all changes to the revised IWO
    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
                                                       24
     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?
                                                  25
    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
    cynthia.holdren@acf.hhs.gov or 240-676-2808
      IWO Training Presentation
• Visit
          http://www.acf.hhs.gov/programs/cse/newhire/employer/
                   publication/training/iwo_training.pdf




                                                                  27
   Remitting Payments


  Once the employer
                         agency was to send the
started withholding
                        payments electronically.
child support from
Ricky’s wages,
 the fastest, most
 efficient way to get
 the money to the
  child support

                                               28
                  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 contacts
   http://www.acf.hhs.gov/programs/cse
  Click on “Employer Information”

                                                29
          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%             30
16 States/Territories Require
e-Payments for Child Support




 California, Florida, Guam, Illinois, Indiana, Iowa, Massachusetts,
 Nebraska, Nevada, North Dakota, Ohio, Oregon, Pennsylvania, Texas,
 Virginia and West Virginia                                           31
          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



                                                       32
        Tribal IWOs


 Winnie moved on         and opened a case with
with her life and        the tribal child support
decided to move back     agency.
with her tribe on the      The tribal CS agency
reservation.             issued an IWO to the
  She closed her child   employer.
 support case in FL


                                                    33
        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.


                                                        34
          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.

                                                 35
       Fast Forward—
    2 Years in the Future

 Winnie decided          She reopened her case
to move back to        in FL and FL issued an e
Orlando to be closer   -IWO to Ricky’s
to the Magic Castle    employer.
 where she was able
 to find a job as a
 double for a famous
 mouse actress.


                                                  36
            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



                                             37
  24 States Using e-IWO—Represents
over 70% of the child support caseload!
       •   Arizona         •   New York
       •   California      •   North Carolina
       •   Colorado        •   North Dakota
       •   District of     •   Ohio
           Columbia        •   Oklahoma
       •   Idaho           •   Oregon
       •   Illinois        •   Pennsylvania
       •   Indiana         •   Tennessee
       •   Massachusetts   •   Texas
       •   Michigan        •   Virginia
       •   Missouri        •   Washington
       •   Nebraska        •   West Virginia
       •   New Jersey
                                                38
Want more information about e-IWO?
                      Contact:
                      Bill Stuart
           william.k.stuart@acf.hhs.gov
                   518-399-9241

e-IWO presentation available at Ascentis.com, under
       Resources and 2012 Webinar Archive.
                   Or click here
                                                39
    Ricky Gets a Bonus!


                            After returning to work
  Last year, Ricky        and performing
suffered an injury        exceptionally well in a
which prevented him       feature film, he was
from working for          eligible to receive a
                        e
 several months and h bonus!
                        d His employer used the
 got behind in his chil
 support payments.        Debt Inquiry Service to
                          notify FL about the
                          payout.

                                                      40
      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
                                     DIS


          -Success Story-
An employer received a response in 45
              minutes!                        41
30 States participating in
      Debt Inquiry
•   Arkansas               •   Missouri
•   California             •   Montana
•   Colorado               •   Nebraska
•   Connecticut            •   New Jersey
•   District of Columbia   •   New Mexico
•   Florida                •   New York
•   Guam                   •   North Dakota
•   Idaho                  •   Oklahoma
•   Illinois               •   Oregon
•   Indiana                •   Pennsylvania
•   Iowa                   •   Puerto Rico
•   Kansas                 •   Tennessee
•   Kentucky               •   Texas
•   Maine                  •   Utah
                                              42
•   Minnesota              •   Virginia
The Kids Are All Grown Up!


 In June, the triplets    The triplets were
graduated from high      accepted to Mouse
school and Ricky’s       University where they
employer received a      would study graphic
termination notice       design with a focus on
for the child support    character animation.
 order since all of
 Boys were also 18.


                                                  43
             Visit our Website!
www.acf.hhs.gov/programs/cse/newhire/employer/home.htm




                                                         44
Preview of new OCSE website




                              45
          Employer Service Contacts

Sherri Grigsby                             Nancy Benner
sherri.grigsby@acf.hhs.gov                 nancy.benner@acf.hhs.gov
202-401-6114                               202-401-5528

                     Lynnetta Thompson
                     lynnetta.thompson@acf.hhs.gov
                     202-401-6982

 Bill Stuart (e-IWO)                       Cindy Holdren
 william.stuart@acf.hhs.gov                cynthia.holdren@acf.hhs.gov
 518-399-9241                              240-676-2808


                                                                         46
The End. Thank you!


                  47
Q&A
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         How Ascentis Can Help
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