What Every Employer Must Know About Child Support. Robyn Large and Lynnetta Thompson

Transcription

1 What Every Employer Must Know About Child Support Robyn Large and Lynnetta Thompson

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3 HOUSEKEEPING

4 HOUSEKEEPING Certificates delivered by no later than 6/24/17 Be watching using YOUR unique URL for login Stay on the webinar, online for the full 60 minutes. The use of this seal confirms that this activity has met HR Certification Institute's (HRCI ) criteria for recertification credit pre-approval. Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at *This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM. *This webinar has been approved by the APA for 1 (one) RCH credit.

5 Today s Presenters Robyn Large Robyn Large works with the federal Office of Child Support Enforcement (OCSE), Employer Services team, where she is involved with the OCSE Child Support Portal, EFT-SDU, and Lump Sums. She is also responsible for child support training and the development of publications and other materials to promote employer awareness of online applications. Lynnetta Thompson Lynnetta Thompson manages the Locate and National Directory of New Hires (NDNH) team for OCSE. She oversees new hire reporting, data submissions by states and federal agencies, and OCSE s website. She also assists states in their outreach efforts and employers on issues involving new hire reporting.

6 NEW HIRE REPORTING

7 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

8 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

9 Poll As an employer, what is your biggest challenge in reporting New Hires? Time consuming Does not seem important Difficult to process Was not aware it was required

10 WHAT HAPPENS AFTER YOU REPORT NEW HIRE INFORMATION?

11 Income Withholding Order (IWO)

12 WHAT IS THE IWO? 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!

13 IWO - REGULAR ON IT S 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

14 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

15 INCOME WITHHOLDING ORDER HOW CAN YOU GET RID OF ALL THAT PAPER AND SAVE TIME & MONEY?

16 e-iwo

17 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

18 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 1. Do you receive a large number of IWOs each week? 2. Do you have IT resources available? 3. Do you have available time to implement?

19 e-iwo: YOUR CHOICE System-to-System If you receive a significant number of IWOs per week or month and have available IT resources for a three-tofive month programming effort, System-to-System may be the option for you. No Programming 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.

20 PDF ACKNOWLEDGEMENT Check Accept or Reject Supply a reason code if rejecting Save PDF

21 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: eiwomail@acf.hhs.gov Phone:

22 Poll As an employer, what is your biggest obstacle in processing IWO s in an electronic format (e- IWO)? Programming costs Programming time Have not researched options

23 Employer Services Portal Applications

24 Employer Services Portal Applications 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 Employer Reporting Employees who are eligible to receive a lump sum payment and who have terminated employment

25 CHILD SUPPORT PORTAL

26 EMPLOYER INFORMATION UPDATES (EIU) SELECT APPLICATION Employer Information Updates Employer Reporting

27 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

28 EIU NAMES AND ADDRESSES

29 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

30 EIU- ADDRESS TYPE THIS IS WHERE YOU INPUT YOUR SLIDES 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

31 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

32 SUPPLEMENTAL INFORMATION THIS IS WHERE YOU INPUT YOUR SLIDES All FEINs are listed in the Your FEIN(s) drop-down list Select a FEIN to add supplemental information

33 SUPPLEMENTAL INFORMATION

34 SUPPLEMENTAL INFORMATION

35 SUPPLEMENTAL INFORMATION

36 POINTS OF CONTACT

37 POINTS OF CONTACT

38 MULTISTATE REPORTING

39 MULTISTATE REPORTING MANAGE RELATIONSHIPS

40 MANAGE RELATIONSHIPS ADD/EDIT COMPANY

41 POINTS OF CONTACT

42 EDIT CONTACT INFORMATION

43 CERTIFICATION All FEINs are listed in the Your FEIN(s) drop-down list Select a FEIN to review the certification information

44 CERTIFICATION When company information is up to date certify each FEIN or select Certify All. Notification is sent every six months to make sure all information is still current.

45 Poll As an employer, what is your biggest obstacle to signing up to use the OCSE Child Support Portal? Currently using the e-iwo process Prefer manual process Was not aware of this application Other, please explain

46 EMPLOYER REPORTING SELECT APPLICATION Employer Information Updates Employer Reporting

47 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

48 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

49 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

50 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.

51 TERMINATION ENTRY Employers must report terminations to the child support agency that issued the IWO.

52 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.

53 FILE ERRORS Click Download

54 REPORTING HISTORY Print hardcopy or save to PDF

55 QUESTIONS Enter all questions into the Questions section of the GoToWebinar panel on your computer screen

56 HOUSEKEEPING Certificates delivered by no later than 6/24/17 Be watching using YOUR unique URL for login Stay on the webinar, online for the full 60 minutes. The use of this seal confirms that this activity has met HR Certification Institute's (HRCI ) criteria for recertification credit pre-approval. Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) recertification credit hours toward aphr, PHR, PHRca, SPHR, GPHR, PHRi, SPHRi recertification through HR Certification Institute's (HRCI ). For more information about certification or recertification, please visit the HR Certification Institute website at *This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM. *This webinar has been approved by the APA for 1 (one) RCH credit.

57 OCSE Employer Services Team Sherri Grigsby, Federal Manager Robyn Large Cindy Holdren Andrew Large Bill Stuart (e-iwo) Lynnetta Thompson, Federal Manager National Directory of New Hires Team

58 Ascentis Payroll Ascentis Payroll Helps manage garnishment processing tasks. Multi-tier creditor garnishments can be automatically calculated based on employee pay per check. Multiple state creditor garnishment calculation rules can be entered Customize maximum withholding % for garnishments and child support orders per employee. Split funds between multiple creditors Send withheld amounts by a touch of a button.

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