1. Lauren Johnson, Policy Coordinator
Emily Gregg, Policy Supervisor
Robert Duck, Fiscal Manager

2. “IV-D” “IV-A” “IV-E” “Non IV-D” Types of Child Support Cases
Four Different Types of Child Support Cases
Cases being established, enforced and/or modified by the Tennessee Child Support Program
Cases where the custodial parent is receiving public assistance from the state
Referrals
“IV-D”
“IV-A”
“IV-E”
“Non IV-D”
Both ran by DHS
Do you find it confusing that some families pay child support privately, directly to the custodial parent, and others pay child support through the state in which the child support order was established? This is because there are actually four different types of child support cases. They are called "IV-D," "IV-A," "IV-E," and "Non IV-D" child support cases.
IV-E--These cases are also automatically referred to the Office of Child Support Enforcement in order to attempt to recoup costs from the non-custodial parent(s).
Where child is being cared for by someone other than a parent, like a relative or the foster care system
child support maintained privately, such as following a divorce

3. A national program authorized and defined by federal statute
The Title IV-D
Child Support Program
A national program authorized and defined by federal statute
A federal, state, tribal, and local partnership to assist families with self-sufficiency
IVD verse non IVD-explain
A program administered in Tennessee by the Department of Human Services

4. IV-D Child Support in Tennessee
What We Do
Establishing paternity
Establishing child support orders
Enforcing child support orders
Collecting & distributing child support payments
Child support locates the non-custodial parent for the purposes of…
Lauren

5. Figures From Across our Great Nation
14.4 million custodial parents
82% Women
79% Are 30 years old or older
68% White
25% Black
21% Hispanic
15.8 million child support cases
$33.6 billion collected in support according to the FY2013 Office of Child Support Enforcement
$32 billion collected in support
(74% [$22.2 billion] collected through Income Withholding Orders)
Lauren
THANK YOU!!

6. Did You Know..
August is
Child Support
Awareness Month

7. Definition of POOR FAMILIES from OCSE: living at or below 50% of poverty level (3 family members poverty level for 2013 = $19,530)
Deeply poor = 50% of that.

9. Tennessee Child Support
Performance Measures
Paternity Establishment Percentage (PEP)
Percentage of Cases with Orders
Collection Rate for Current Support
Percentage of IV-D Cases with Collection on Arrears
Cost-Effectiveness
Lauren

10. Tennessee IV-D Child Support
Performance Trends
5.90%
3.65%
Patti

11. Tennessee Child Support Payments
The Tennessee State Distribution Unit processes over $1.6 million in child support payments every day
Child Support Collections Last year (SFY) $611 million
$590 million went directly into the hands of families
Patti: approximately 27M was collected for state arrears

12. Child Support Judicial District Map
Total Caseload for TN IV-D Child Support 421,195
43 CS offices in 21 JDs in TN
10th largest caseload

13. Jud Over 20% of all cases with court orders are in Memphis
Patti: 21% of our total collections from Shelby County. For FFY 2013, Shelby County: $129,019,829 in collections

14. How Employers Help Our Efforts: Employer Responsibilities
Report new hires to the State within 20 days through
Enroll children in health care coverage when ordered
(withholding limits apply)
Income Withholding Order (IWOs)
Know them, accept them, love them:
Only the clerk of the court & DHS child support/contractors have authority to issue IWOs (T.C.A et seq.)
Federal law requires the use of the IWO form in all child support cases
Remit payment within seven (7) days of the date the employee is paid
Notify child support services regarding lump sum payments
Report the termination of an employee to child support services
Emily G:Healthcare reform: OCSE directives are only suggesting we work w/ clients as to how they can access health insurance. Too early to know if policy/procedures will changes due to act. IWO-Required to take action In Tennessee, only the clerk of the court & DHS child support and its contractors have the authority to issue IWOs. There is only ONE Federal IWO form that should be sent to employers. Current version set to expire in May of All child support cases—all IV-D cases & non IV-D cases issued on or after jan Federal Program, state administered- 67% federally funded. Lump Sum payments:

15. New Hire Reporting: Why Its Important
State matches the new hire data to child support obligations and issues Income Withholding Orders to employers
Prompt reporting helps to detect and prevent public assistance, food stamps and unemployment and workers’ compensation fraud by matches to these databases.
Other states can also conduct matches through the National Directory of New Hires to prevent public assistance fraud

16. New Hire Reporting

17. New Hire Reporting: Helpful Hints
Report new hires with the same FEIN (Federal Tax ID Number) that you use to report each New Hire's Quarterly Wage information.
Including a contact person & phone number is optional but extremely helpful. This information will be used in case the new hire's information is missing or illegible.
Hand written report are are often difficult to read & can increase data entry errors. Please use black ink & legible handwriting
New Hire encourages you to type the information and use size 12 font when possible!

18. New Hire Reporting: Where to Report
Internet: register your company and report on-line or via a file upload
Mail: (for diskettes, magnetic tapes and cartridges, W-4's, lists and State Reporting form)
Tennessee New Hire Reporting PO Box Nashville, TN 37217
Fax: (for W-4's, lists, and State Reporting form)
Questions/Problems: Contact MAXIMUS New Hire at
(615) or online

19. Income Withholding Is Challenging!
Knowing which state laws, rules, regulations to apply is difficult for employers
Employers know that they can be liable if garnishment is processed incorrectly
Some states require separate payments and methods of payment for fees and/or non-IV-D payments, causing additional administrative expenses for employers.
In some states not all payments are directed to the SDU.

20. Income Withholding Order
Send With Payment
Emily G: This is what an IWO looks like. When sending in payment, include Case number, Employee name & Employee SSN to prevent any issues with applying the payment to a case.

21. Income Withholding Order Continued..
Page 2 of IWO
Signature Required
Who can issue IWOs in Tennessee?
Who cannot?
Use ‘Return to Sender’ box if form is incorrect in any way
Emily G: Can: Cs workers, court Cannot: employees, attorneys, custodial parent, etc.

22. Changes to IWO Increased font size for improved readability
State may change the font size if they wish
Result of the changes is a 4-page document instead of 3 pages
Added language in REMITTANCE INFORMATION section about finding withholding limits for non-employees in Supplemental Information
Next steps
IWO form and instructions will be approved by OMB
OCSE will send an Action Transmittal to states
OCSE will inform employers and the state courts

24. Where we are going Making IWO compliance easier—
New Tennessee Child Support Employer Line
(800) or by at
Can assist with questions about proration, IWO issues, etc.
Electronic Funds Transfer (EFT) Payments
Employer Outreach efforts
Tennessee employers
Payroll companies
Groups/Associations
Online employer support
Emily G: We value employers, know how important they are to our success..trying a more employer-centered approach. Want employers to know we ARE available for their questions. We began targeting employers with highest number of IWOs first.

25. Making Your Life Easier: e-IWO
States, tribes, territories send income withholding orders (IWOs) electronically & employers accept & process them electronically
Paperless!
Most states are already using e-IWO
400+ companies/organizations on e-IWO
Three (3) different options for e-IWO
depending on your company needs
Companies on
e-IWO…
ADP Payroll Solutions
Walmart
JC Penny
FedEx
And MANY, MANY MORE!

26. E-IWO States Map
Emily G: Alabama came up on e-IWO in July. Delaware & Kentucky will by the end of the year. Maryland & Utah have expressed interest.

27. e-IWO Process 1.) OCSE pulls e-IWOs from the states E-IWO States
2.) OCSE separates the
e-IWOs and groups them by employers
3.) OCSE sends e-IWOs (or Acknowledgment PDFs or XLS) to employer securely via the internet
6.) Acknowledged
e-IWOs are then sent back to each state
5.) OCSE then groups the acknowledged
e-IWOs by state
4.) Employer (accepts or rejects) e-IWOs then sends acknowledgements to OCSE 15

28. Want more information? Sign-up to attend a free webinar on e-IWO!

29. Bonus and Lump Sum Payments
Bonus and lump sum payments made to employees are considered income and may be garnished to collect past-due child support.
Examples include:
Severance
Vacation payouts
Insurance settlements
Retirement incentives
Commissions
Stock Options
Lottery Winnings
Awards
Payments as a result of verdicts

30. Debt Inquiry Service (DIS)
Provides employers ability to report bonus, lump sum or other type of payout online using web application
Allows employers to upload a file or enter information on DIS application about employees who are eligible for lump sum type of payment
OCSE compares info to its debtor file (non-custodial parents who owe past-due support) then returns matched to appropriate state child support agency
Through our partnership with employers, the Debt Inquiry Service makes a significant difference in the lives of millions of children.

31. States Participating in DIS
*As of July 16, 2013

32. How Employers Can Participate in DIS
Complete registration form
Can be found at:
Or we can you the form
Send to: Cindy Holdren
Employer Services Team
Federal Office of Child Support Enforcement
Phone: (240) Fax: (757)
Ms. Holdren can also answer any questions you may have

33. Tennessee State Disbursement Unit
Located in Nashville, Tennessee
Operated by our private contractor, Systems and Methods Inc. (SMI)
Currently average 375,500 payments processed per month
Total collections for the Tennessee Child Support were $611,865,498 for Federal Fiscal Year 2013
Customer service line for child support custodial and non-custodial parents: (800) or (615)
contacts: or
Processed approximately 6,300,000 payments last year. Disbursements are rolled together if a custodial parent has multiple cases and when we send payments to other states for multiple cases (reason for fewer disbursements when compared to payments). State Disbursement Unit (SDU) is how the feds refer to the Receipting Unit. Tennessee will be switching to this term in February (when current contract expires).

34. We encourage all our partners to make the switch to EFT or Web pay!
Payment Options
Check or money order mailed to the following address:
Tennessee State Disbursement Unit
PO Box
Nashville, Tennessee 37229
Electronic Funds Transfer (EFT) via Automated Clearing House (ACH)
Web pay through the child support website
Credit card payments for registered users
We encourage all our partners to make the switch to EFT or Web pay!
We currently receive about 62% of all incoming collections by EFT and this number keeps increasing.

35. Benefits of EFT and Web Pay
Increased accuracy – fewer misapplied or misidentified payments, fewer complaints and phone calls
Faster – families receive payments sooner
Increased reliability – scheduled payments are not lost or delayed
Reduced costs – no postage, flat fee or no fee
Reduced paperwork – no paper checks, envelopes, or turnaround documents needed
Reduced opportunity for theft and fraud
Saves the State and taxpayers money

36. Web Pay VS EFT Web Pay EFT
Web Pay (or ACH Debit) is where an employer authorizes the State Disbursement Unit to draft their bank account for IWO payments
We will then draft your bank account on the date you scheduled the payment
Similar to bill pay through your bank
EFT/EDI (ACH Credit) is the process of sending child support payments electronically through the ACH network.
Offers alternative to preparing checks & remittance documents
Your bank will draft your account for the appropriate amount and transmit the payment to the Centralized Collections Unit

37. How to Use Web Pay Can be accessed from our website:
Select the ACH/Debit option and follow instructions
Good option for smaller employers
Capable of both one time payments and recurring payments
Similar to paying bills online with your bank
Select payment method
EFT/EDI ACH Debit / Credit Card Download Remittance Document
      
This Web Site Does Not Accept Payments Drawn On A Foreign Bank Account
Good option for smaller employers who may not have a payroll system capable for generating EFT’s in the NACHA format

38. Overview: How to Enroll in EFT
Tennessee Child Support can accept EFT payments through the Automated Clearing House banking network using NACHA CCD+ or CTX format
Visit our website at
Four easy steps to implementing EFT/EDI for child support withholdings:
Register for an account if you are a new user or login on if existing user
Reconcile Employee data through site
Have EFT/EDI file created by another entity or have your EFT/EDI file created by our website
Transmit payment

39. 1. Register for an Account
Key at least the first three letters of the employer and click Search
Choose the appropriate employer name
If the appropriate employer is not listed, click Previous and key different information in for search criteria
If the employer is not on our child support system (TCSES),click on Create Employer Record

40. 2. Reconciliation
If uploading employee information for EFT/ EDI (ACH credit), select Upload Reconciliation Spreadsheet
If uploading employee information for ACH debit, click Schedule New Payment from the Select an Option page

41. 3. Coordinate with Your Financial Institution
If reconciling information for ACH debit, click Continue to provide bank account information.
If reconciling information for EFT/ EDI, the Reconcile Employee Information page is displayed with the client’s bank account information .
The employer needs to work with their payroll company or data processing department and their bank to generate and transmit a file that includes the withholdings from their employees’ pay along with posting information.
*Note: If the employer does not have access to Microsoft Excel, they can manually enter employee information.
4. Transmit Payment!
Financial Institution makes payment

42. Live Chat Available Online

43. EFT & Web Pay: User Friendly
Once the account is created & banking information put in, you can:
Schedule a New Payment
Cancel a Scheduled Payment
Edit Bank Account Info
View Online Payment History
Choose payment frequency and start date
Update Contact Info

44. We will work with you to find a solution
Best Practices
When sending paper checks, only submit identifying information in one place
We must process payments within two (2) business days per Federal law, therefore, we cannot hold payments
Always try to send payments according to the IWO
Please do not reverse EFT payments or stop payment on checks without first contacting us
Problems: Call us as soon as possible
We will work with you to find a solution
(example of ATT and Memphis college not sending correctly). Bullet 1-If you use the turnaround document the State provided, do not include information on the check (info on checks take priority). If you do not use the turnaround document, enter the identifying information on the check. Bullet 2- If we are at fault, we will make corrections . If you are at fault, you must make corrections (misapplied payment information). Bullet 4- Do not submit an EFT reversal or cancel checks