Employer Quarterly News

Transcription

1 A Publication of the MiSDU Outreach Department Employer Quarterly News Department of Human Services - Office of Child Support, Michigan State Disbursement Unit, Lansing, Michigan All newsletters are downloadable from the MiSDU Website Shifting Your Paradigm Paper versus EFT Is time management one of your daily challenges? If so, then how do you define time management? For many employers, this definition begins by focusing on daily activities and making a decision about how to get more time out of your 8-hour workday. By using this paradigm, most of us have already set ourselves up to fail because no one can manage an invariable. Managing is about juggling many different issues because, as any manager will tell you - there is no constant in managing! Improving time management begins by accepting that you must shift your paradigm and focus on the real issues and challenges of your business. You re probably thinking by now, OKAY, its me, but the issue of getting things done is still a problem. You are absolutely correct. However, by shifting your paradigm, you can now put into action specific steps to correct those issues. How can you do this? We re glad you asked. Electronic Funds Transfer (EFT), whether transmitted on the MiSDU Website, or through the National Automated Clearing House Association (NACHA), is cheaper, safer, and faster than sending paper checks. Your company will save time and money, and your employees court-ordered support payments will reach the custodial family faster. A study released by the National Automated Clearing House Association (NACHA) gives the following cost comparison: Cost to send a paper check: $1.90 Cost to send a payment by direct deposit: $.14 Inside this issue: Volume 2 Issue 2 Admittedly, many employers have embraced the EFT process, but many still remain true to the standard paper check procedure paradigm. MiSDU offers employers a tangible workforce resource that will improve your time management - the EFT process. The chart below is only a snapshot of the old versus the new. In Column A we have the newcomer to the child support arena - EFT. In Column B, we have the old faithful - paper checks - which outlines real possibilities when using this payment option. Check out the stats below and decide the winner for yourself. A - EFT Cost to send EFT - $.14; Website - $0 Secure EFT and Website payments Minimal administrative costs Expert technical support from SDU staff Speedier disbursements Cases validated before payment is transmitted B - PAPER Cost to send paper - $1.90 Possibility of stolen paper checks Stop Check and returned check fees Checks, stamps, and mailings supplies Checks must be written and processed Check writing errors possible EFT versus Paper Website Update Money Matters Continued on Page 2 July 2008

2 Shifting Your Paradigm EFT/EDI can reduce your paperwork, handling costs, and many associated bank charges, including the cost of returned checks or stop payments. Another major benefit to taking advantage of the EFT process is the considerable reduction in the amount of time your staff will expend answering inquiries from NCPs, CPs, and others about payment status. The EFT/EDI process requires little effort, and ensures timeliness and accuracy in processing your employees support obligations. Problems replacing lost or stolen checks, or trying to find time to get to the post office will become distant memories. If for any reason, you have a question about an electronic payment, we can access and provide to you the exact data that is transmitted to us by your bank. Additionally, all payments processed through the NACHA network are monitored by the U.S. Government through Regulation E of the Federal Reserve Board, which means that no payments can be diverted to a random account. In a word, EFT is convenient. In two words, it s safe and convenient. MiSDU Electronic Payment Options for Employers EFT/EDI -This electronic option is the most commonly known form of electronic transmissions. Child support payments are processed through the ACH Network using the National Automated Clearing House Association s (NACHA) approved CCD+ and CTX 820 formats. Your bank will advise which option is available for your business. Pay Online using ACH Credit - MiSDU accepts ACH credit payments online. The employer will register on the Website as usual. However, the ACH Credit process allows the employer to save their employee s data to a folder and send it the employer s bank on a specific date. Pay Online by Debit or Credit Card - You may use a debit or credit card. You will be charged $3.75 per transaction to use this option. MiSDU values your involvement and commitment to making Michigan s child support program the rousing success it has become! Outreach stands ready to assist you in the developmental stages of the EFT process. If you have questions or concerns, please call us at , option 1. Prompt EFT Disbursements Upon receipt of the child support payment information, the SDU will credit the appropriate employee's account, and transmit the payment to the custodial parent within approximately 24 hours. Pay Online using ACH Debit - Employers may register on our secured website and pay child support obligations. With your permission, we will debit your account. This service is beneficial for small- to medium-sized employers who have less than 100 obligations per pay period. Many times, employee deductions vary, and by using the web portal, the employer has the convenience and flexibility of editing obligation amounts, editing, deleting or adding bank accounts, or deleting or adding obligors, as necessary. 2

3 Enhanced Online Payment Center Deployed April 2008 The new CONFIRMATION PAGE - If your payment is successful, it will always show Confirmation of Payment - Confirmation Number/Transaction ID; and date and time paid. As with the old website, if your page states Confirmation of Payment at the top of the page, your payment was successful. If your payment failed, you will see Payment Declined - plus the reason your card declined. (Noted in red print at the top of the decline page). Payment History You can view your payment history approximately minutes after you transmit. 3

4 Understanding the Enhanced Website The Website Home Page remains the same. However, many changes have been implemented to the payment page. All instructions on the enhanced site are shown in RED versus the small print in the little yellow boxes. Use the information taken from your employee s Income Withholding Order to complete all fields as indicated. Do not insert hyphens in the SSN and Docket fields. Enter your regularly scheduled payment amount. Example $125.00*. Enter the amount of THIS* payment. If you wish to pay a DIFFERENT amount (Example: $250.00) you may enter it here. After completion, click Add Case. The Add Obligation Screen contains all of the information that will properly process your employee s case. As with the previous site, no hyphens or alpha characters should be added to the SSN and docket fields. (The docket must always begin with the century, i.e., 1999, 2005). The obligor name field now has 3 cells- one for first, middle and last name. You must enter an obligation amount in both the Enter Obligation Amount for this Case and the Enter the Amount of the Payment for this Case fields. Both fields must be completed in order to proceed. Examples of entries for the Case Description field: CS, child support, alimony, Susan, James, et cetera. If you do not complete this field, it will default to the obligor s name. When you have completed all fields, click add case. 4 3

5 Questions and Answers Is an online payment considered an electronic payment? YES. Although it is not your standard electronic payment, any non-paper payment is considered an electronic payment. What information is needed by the employer/obligor to register on the MiSDU Website - Employer - Company name, contact name, valid address, create user ID (hard-coded which means for this account the username can never be changed); password, physical address (no P.O. boxes), and valid telephone number. Obligor - Your first name, your last name, valid address, create user ID (hard-coded which means for this account the username can never be changed); password, physical address (no P.O. boxes), and a valid telephone number. What are the steps used by an employer to set up recurring payments on the website. Are these the same for an obligor? No. An employer cannot set up recurring payments on the MiSDU website. Can the employer overnight (FEDEX, USPS, Airborne Express, etc.) a payment to the physical MiSDU address? No. All employer payments must be sent to MiSDU, P.O. Box 30350, Lansing, MI I made a payment on the Website. Did it go through? You can now log into the website and obtain a payment history for all payments made on the website after April 16. Click Login; choose Payments; choose Payment History, enter a date range. Your payment will be displayed and will show success or failure. A failed payment will be displayed in RED with an asterisk. Example: *. A successful payment will be display as Confirmation of Payment. paid child support to the MiSDU, we will need proof of your FEIN. For EFT payments, MiSDU needs employer name, FEIN; contact name; address, and phone number to begin the process. Can you just give the employer MiSDU s bank account numbers and let the employer direct deposit into your account? No. Per MiSDU validation procedures, we cannot give employers our bank account numbers until the employer has completed the EFT validation process. I made a payment on the Website yesterday for one of my employees who quit. Can you stop the payment, or can I get it back? If money is sent in error and the employer contacts us IMMEDIATELY we will make every attempt to intercept the payment however this is not guaranteed. If you wait and contact us after the payment has been processed there is nothing we can do. Can I send you letters and have you forward them to the FOC? No. Do not include non-payment case related information with your payment. Employers that need to communicate changes of employee s status to an FOC can find a complete listing of addresses on the Home page of Payment and payment-related documentation is processed at the MiSDU. Case-related inquiries and all other correspondence are processed at the County that has jurisdiction over the case. Case related information that is not a payment must be directed to the appropriate County Court. What specific information is needed to set up ELECTRONIC payments? If you want to set up payments on the Website, you must access the site and enter your FEIN, create a username and password. Enter contact name, phone number, physical address, and address. The MiSDU will validate your employer information, then send you a confirmation . If you have never 5

6 Money Matters Fiscal year 2008 Second Quarter statistics are below. As you can see, employer wage withholding continues to bring a mammoth amount of income for Michigan s families. Employers continue to do an outstanding job of collecting and remitting support payments to the MiSDU. This report of Child Support Collections and Disbursements is prepared quarterly under MCL as an informational management tool. Collection and disbursement of this magnitude would not be possible without employers willing to allocate staff time and resources to making it happen. Employer responsibility falls into 4 major categories: 1) Report all newly hired employees. 2) Pursuant to an order, withhold income for child support and health insurance premiums for medical support. 3) Remit withheld payments within the specified timeframe. 4) Report terminated employees. Employers who comply with child support laws help their communities by saving taxpayer dollars, by preventing and reducing fraud, by promoting a stable and reliable workforce, and by providing financial stability through child support contributions. Thank you, Employers! Employer Advisory Group Stay ahead of the pack! Join the Employer Advisory Group. To join, or obtain information about the EAG, please call , option 1, or the Outreach Department at misduoutreach@michigan.gov. The next EAG meeting is scheduled for October 23, Mailing Address for Employer Payments: MiSDU, P.O. Box 30350, Lansing, MI , phone , option 1 6