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 Reduced trigger for passport denial 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 Reduced Federal funding

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% Illinois and Indiana average = 50%

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

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 ( –OCSE’s Tips for Employers –State E-Payments Contact –OCSE Employer Services Website hire/ employer/home.htm

e-payments  Questions about e-payments? Contact Nancy Benner: –

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. Both public and private employers have provided input to the project.

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 Lump Sums – –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: –

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, –OCSE is establishing a workgroup for the revision process.

Revision of the IWO Comments or ideas on revising the IWO form? Contact Robyn Large: –

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: –

Employer Services Website Click on: Information for Employers

Employer Services Website

How Can an Employer ask OCSE a Question about Child Support? Log on to OCSE Homepage Click on Information for Employers Click on Frequently Asked Questions in the right column

How Can an Employer Ask OCSE a Question about Child Support? Click on any topic area The 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 Anne Gould Manager, Employer Services Federal Office of Child Support Enforcement