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

“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

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

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

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!!

Did You Know.. August is Child Support Awareness Month

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.

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

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

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

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

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

How Employers Help Our Efforts: Employer Responsibilities Report new hires to the State within 20 days through https://www.tnnewhire.com/ Enroll children in health care coverage when ordered (withholding limits apply) Income Withholding Order (IWOs) Know them, accept them, love them: http://www.acf.hhs.gov/sites/default/files/ocse/omb_0970_0154.pdf Only the clerk of the court & DHS child support/contractors have authority to issue IWOs (T.C.A. 36-5-501 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 2014. All child support cases—all IV-D cases & non IV-D cases issued on or after jan. 1 1994. Federal Program, state administered- 67% federally funded. Lump Sum payments:

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

New Hire Reporting

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!

New Hire Reporting: Where to Report Internet: www.tnnewhire.com; 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 17367 Nashville, TN 37217 Fax: (for W-4's, lists, and State Reporting form) 1-877-505-4761 Questions/Problems: Contact MAXIMUS New Hire at (615) 726-5200 or online

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.

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.

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.

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

Where we are going Making IWO compliance easier— New Tennessee Child Support Employer Line (800) 446-0814 or by email at Childsupport.Empdmaint.DHS@tn.gov Can assist with questions about proration, IWO issues, etc. http://www.tn.gov/humanserv/cs/cs_main.html 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.

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!

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.

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

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

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

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.

States Participating in DIS *As of July 16, 2013

How Employers Can Participate in DIS Complete registration form Can be found at: http://www.acf.hhs.gov/sites/default/files/ocse/debt_inquiry_profile_form.pdf Or we can email you the form Send to: Cindy Holdren Employer Services Team Federal Office of Child Support Enforcement cynthia.holdren@acf.hhs.gov Phone: (240) 676-2808 Fax: (757) 257-4439 Ms. Holdren can also answer any questions you may have

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) 838-6911 or (615) 253-4394 Email contacts: tnccu@smimail.net or Childsupport.Fiscalservices.DHS@tn.gov 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).

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 305200 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.

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

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

How to Use Web Pay Can be accessed from our website: https://tn.smartchildsupport.com/ 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

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 https://tn.smartchildsupport.com 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

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

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

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

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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

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