Employers and the Child Support Program 24th Annual Illinois Statewide APA Payroll Conference “Be a Payroll Champion” Employers and the Child Support Program

Session Overview Facts New Hire Reporting Income Withholding Order for Support (IWO) e-IWO Employer Services Portal Employer Information Updates Employer Reporting Multi-state Employer Reporting 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

FACTS Employers are a critical partner in the child support program In FY 2016 32.7 billion dollars collected for child support 75% collected via income withholding Over 65.6 new hires reported 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

NEW HIRE REPORTING 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

Now on the employer services portal app! MULTISTATE 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 Now on the employer services portal app! Portal covered later…. 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

WHAT HAPPENS AFTER YOU REPORT NEW HIRE INFORMATION? 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

Income Withholding Order (IWO) 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

WHAT IS THE IWO? In FY2016, $32.7 billion in child support was 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! 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

IWO - REGULAR ON ITS 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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

INCOME WITHHOLDING ORDER HOW CAN YOU GET RID OF ALL THAT PAPER AND SAVE TIME & MONEY? 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

e-IWO 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

FACTORS TO CONSIDER WHEN DECIDING HOW TO IMPLEMENT E-IWO The FEIN is the key to passing e-IWO data between the state and employer Do you receive a large number of IWOs each week? Do you have IT resources available? Do you have available time to implement? 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

e-IWO: YOUR CHOICE System-to-System No Programming If 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. If 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. 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

PDF ACKNOWLEDGEMENT Check “Accept” or “Reject” Supply a reason code if rejecting Save PDF 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

E-IWO - MORE INFO? 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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

Employer Services Portal 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

Employer Services Portal 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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

CHILD SUPPORT PORTAL 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

Employer Services Portal 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

EMPLOYER INFORMATION UPDATES (EIU) SELECT APPLICATION Employer Information Updates Employer Reporting 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

EIU – NAMES AND ADDRESSES View and update name and address information by FEIN All FEINs are listed in the Your FEIN(s) drop-down list 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

EIU – NAMES AND ADDRESSES 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

SUPPLEMENTAL INFORMATION All FEINs are listed in the Your FEIN(s) drop-down list Select a FEIN to add supplemental information 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

SUPPLEMENTAL INFORMATION 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

SUPPLEMENTAL INFORMATION 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

SUPPLEMENTAL INFORMATION 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

POINTS OF CONTACT 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

POINTS OF CONTACT 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

POINTS OF CONTACT 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

EDIT CONTACT INFORMATION 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

MULTISTATE REPORTING 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

MULTISTATE REPORTING MANAGE RELATIONSHIPS 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

MANAGE RELATIONSHIPS – ADD/EDIT COMPANY 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

CERTIFICATION 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

CERTIFICATION 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

Employer Services Portal Employers may use the Portal to provide information: Employer Reporting Employees who are eligible to receive a lump sum payment and who have terminated employment 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

EMPLOYER REPORTING SELECT APPLICATION Employer Information Updates 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

LUMP SUM REPORTING OVERVIEW EMPLOYERS Report employee pending lump sum payouts FEDERAL OFFICE OF CHILD SUPPORT ENFORCEMENT (OCSE) Matches employees to individuals who owe child support and notifies states when there is a match STATES Contact employers to withhold child support, when applicable 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

LUMP SUM ENTRY Payout Type: Bonus Cash Service Award Commission Insurance Settlement Life Insurance Proceeds Retroactive Pay Increase Severance Sign-on Bonus Vacation Pay Workers’ Compensation Other 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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. 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

TERMINATION ENTRY Employers must report terminations to the child support agency that issued the IWO.  24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

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. 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

FILE ERRORS Click Download 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

REPORTING HISTORY Print – hardcopy or save to PDF 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

QUESTIONS??? 24th Illinois Statewide Payroll Conference "Be a Payroll Champion" 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"

Employer Services Team 24th Illinois Statewide Payroll Conference "Be a Payroll Champion"