Voluntary and Involuntary Debt Collections

Transcription

1 Authoritative Sources: Department of Defense R, Vol. 5, Chapter 8 Department of Defense R, Vol. 5, Chapter 24 Department of Defense R, Vol. 4, Chapter 3 Department of Defense R, Vol. 3, Chapter 3 Department of Defense R, Vol. 7A, Chapter 52 JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 Delinquent Debt Management Guidance Package, Appendix E Department of Defense R, Vol. 5, Chapter 10 Department of Defense R, Vol. 7A, Chapter 41 USC, Title 5, Pay Administration, Chapter 55 Business Process Standards: A business process standard was not directed by law or DoD policy. Business Rule Standards: Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_02 To support auditability, the military payroll system shall maintain a pay history by pay period showing the Voluntary and Involuntary Debt Collection payroll computation factors and results as follows: 1. Debt Collection Amount - The total amount actually computed and collected for a specific pay, allowance, debt, deduction, allotment, tax, etc. for the pay period 2. Debt Reason - Used for auditability, precedence of deduction and identifies the reason for the debt. See precedence of deduction for complete list; for example; a. Local, Emergency and Partial Payments b. Advance Payment for Permanent Change of Station c. Advance of Pay and Allowances d. Advance for Assignment of 1 year or more to Imminent Danger Pay Zone e. Advance Pay When Ordered to Indoctrination Center f. Advance of Basic Allowance for Subsistence g. Advance Pay Upon Evacuation of Members or Dependents h. Advance of Allotment(s) to Dependents i. Advance Pay Members of the Armed Forces Health Professions Scholarship Program on Active Duty j. Advance Pay for Senior Reserve Officer Training Corps (SROTC) Cadets and Midshipmen Ordered to Field Training or Practice Cruises k. Advance of Overseas Housing Allowance l. Advance of Basic Allowance for Housing m. Overpayment of Pay and Allowances n. Telephone Charges o. Commissary p. Commercial Debt Page 1 of 12

2 q. Dishonored Checks r. Bankruptcy s. Tax Levy t. BAS Meal Collection u. Garnishments, Statutory Allotments for Child or Spousal Support and Statutory Allotments for Other Than Child or Spousal Support 3. Debt Remaining Balance - The remaining debt balance of the debt. Calculated based on the total debt amount minus the monthly collections 4. Debt Repayment Begin Date - The start date used to determine the member's eligibility for (1) pay, allowances, bonuses, debts and deductions, or (2) the member's election for tax withholding, allotments, addresses, EFT, etc. 5. Debt Repayment End Date - The end date used to determine the member's eligibility for (1) pay, allowances, bonuses, debts and deductions, or (2) the member's election for tax withholding, allotments, TSP, mailing addresses, EFT, etc. 6. Debt Scheduled Collection Amount - The amount scheduled to be deducted from the military member's pay. The actual debt collection amount is based on payroll computation and member's Gross Pay. 7. Debt Scheduled Percentage Rate - The percentage of disposable pay scheduled to be deducted from the military member's disposal pay. 8. Debt Status - Used to support debt processing and identifies if debt collection is required for the current pay period: a. Active Payroll Collection b. Pending member's due process (suspended) c. Remission Action (suspended) d. Rebutted Action (suspended) e. Waiver Action (suspended) f. Cancelled g. Inactive member Separated h. Combat Hospitalization (suspended) 9. Debt Taxable Calendar Year - Identifies the taxable calendar year for pay and allowance debts. 10. Debt Total Amount - The total amount of the debt 11. Debt Type - Used to support debt processing and identifies if debt collection is voluntary or involuntary 12. Garnishment Case ID Number - Case Number represents the number assigned by the court or an account number assigned by the creditor. This number must be reflected on the check and/or advice of payment. This field is modifiable by a modify transaction on the IGS garnishment request file. 13. Line of Accounting - The "line of accounting" for a government agency and used for both credits and debts. For expenditure, the Line of Accounting denotes the debit appropriation. For taxes, debts and other deductions, the Line of Accounting denotes the credit appropriation. The line of accounting must comply with the BEA SFIS data requirements for business feeder systems and subsequent reporting to target accounting systems. 14. Recipient Account Number - Financial Institution Depositor Account Number is the identification number of a specific account, assigned by a financial institution, designated for electronic funds transfer (EFT) of a person s Federal wage, salary, allotments and garnishments. 15. Recipient Account Type - The specific type of account (i.e., checking or savings) the military member holds with a financial institution designated for electronic funds transfer (EFT) 16. Recipient Address City - The "city" element of the US Post Office mailing address or equivalent for foreign address 17. Recipient Address Country - The "country" element for the US Post Office mailing address or equivalent for foreign address 18. Recipient Address State - The "State" element for the US Post Office mailing address or equivalent for foreign address 19. Recipient Address Street - The "Street" element for the US Post Office mailing address or equivalent for foreign address 20. Recipient Address Zip Code - The "Zip Code" element for the US Post Office mailing address or equivalent for foreign address 21. Recipient Identification Code - Short Code used in transaction processing to derive the recipients Page 2 of 12

3 information such as name, address, Routing Transit Number, account number, account type, account format, point of contact, etc. A Recipient ID Code could be a financial institution, government agency, non-government agency, commercial agency, Line of Accounting, State Child Support Agency, court, etc. 22. Recipient Name - The "full name" of the person, financial organization, government agency, non-government agency, commercial activity, court, Child Support Agency, etc., who monies are paid to (The "Paid To" line) 23. Recipient Payment Method - Used to identify the disbursing payment method for Net Pay, allotments, deductions, debts, garnishments and taxes a. Individual Check Payments b. Individual EFT Payments c. Blanket Check Payments d. Blanket EFT Payments e. Corporate Trade Exchange 820 f. Corporate Trade Exchange g. No check/voucher for transfer h. Intra-governmental Payment and Collection (IPAC) JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 CHRIS: Academic Institution Address Allottee Mailing Address Civilian Employment Organization Name Dependent Residence Address Financial Institution Depositor Account Number Financial Institution Depositor Account Type Financial Institution Name Legal Residence Address Member Advance Pay Repayment Amount Member Debt Remission Determination Amount Member Debt Repayment Determination Amount Member Debt Type Member Discounted Meal Collection Amount Member Repayment Payment Amount Member Repayment Payment Start Date Member Repayment Payment Stop Date Military Unit Name Organization Name Person Full Legal Name Person Mailing Address Person Residence Address Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_04 The military payroll system shall allow the total debt amount to be prorated and collected in installment payments each pay period. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_07 The military pay system shall support Priority of Deductions and Collections based on the Debt Reason and member's available pay. Page 3 of 12

4 Department of Defense R, Vol. 7A, Chapter 52 Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_11 The military payroll system shall allow debts collection to be suspended, cancelled or resumed based on the following reasons: 1. Member's due process 2. Remission Action 3. Rebutted Action 4. Waiver Action 5. Combat Hospitalization Delinquent Debt Management Guidance Package, Appendix E Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_12 The military payroll system shall support cash collections from the military member to reduce the total or remaining debt amount. Such cash collections reduce the member's debt remaining balance. Department of Defense R, Vol. 5, Chapter 10 Department of Defense R, Vol. 5, Chapter 8 Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_12_01 To support auditability, the military payroll system shall maintain a pay history by pay period showing the Voluntary and Involuntary Debt Cash Collection payroll computation factors and results as follows: 1. Collection Voucher Amount - The amount of collection payment. 2. Collection Voucher Date - The date the collection voucher was processed.. Used for auditability or processing payment returns or cancellations 3. Collection Voucher Number - A unique number assigned by the Disbursing Office when a payment return is credited back to members military pay. Used for auditability or processing payment returns or cancellations 4. Debt Account Receivable Document ID - Document reference ID is used to link the military pay account receivables debt (i.e., amount, Line of Accounting, payments, etc.) for appropriated funds to the account receivables record in the DOD accounting systems 5. Debt Reason - Used for auditability, precedence of deduction and identifies the reason for the debt. See precedence of deduction for complete list; for example; a. Local, Emergency and Partial Payments b. Advance Payment for Permanent Change of Station Page 4 of 12

5 c. Advance of Pay and Allowances d. Advance for Assignment of 1 year or more to Imminent Danger Pay Zone e. Advance Pay When Ordered to Indoctrination Center f. Advance of Basic Allowance for Subsistence g. Advance Pay Upon Evacuation of Members or Dependents h. Advance of Allotment(s) to Dependents i. Advance Pay Members of the Armed Forces Health Professions Scholarship Program on Active Duty j. Advance Pay for Senior Reserve Officer Training Corps (SROTC) Cadets and Midshipmen Ordered to Field Training or Practice Cruises k. Advance of Overseas Housing Allowance l. Advance of Basic Allowance for Housing m. Overpayment of Pay and Allowances n. Telephone Charges o. Commissary p. Commercial Debt q. Dishonored Checks r. Bankruptcy s. Tax Levy t. BAS Meal Collection u. Garnishments, Statutory Allotments for Child or Spousal Support and Statutory Allotments for Other Than Child or Spousal Support 6. Line of Accounting - The "line of accounting" for a government agency and used for both credits and debts. For expenditure, the Line of Accounting denotes the debit appropriation. For taxes, debts and other deductions, the Line of Accounting denotes the credit appropriation. The line of accounting must comply with the BEA SFIS data requirements for business feeder systems and subsequent reporting to target accounting systems. 7. Payment Disbursing Station Symbol Number - Unique identifier assigned by Treasury to identify a disbursing officer making the payment. Used for auditability or processing payment returns or cancellations 8. Payroll Calendar Date - Used to identify the pay period the entitlement or deduction was computed to determine the member's gross or net pay for the pay period. For example: BAH With Dependent Rate is processed on April 29, 2011 with effective date April 25, The transaction was input after the cutoff date for the end-of-month April 2011 pay period; therefore, monies were computed in the mid-month May 2001 pay period. The Payroll Calendar Date is May 15, Note: Any date can be used as long as the date is unique and identifies a specific pay period. In this example, May 15, 2011 is used to identify the mid-month Page 5 of 12

6 May 2011 pay period (May 1, 2011 to May 15, 2011) and May 31, 2011 is used to identify the end-of-month May 2011 pay period (May 16, 2011 to May 31, 2011). 9. Person Last Name - The person's legal last name. 10. Social Security Number - Person Social Security Number serves as a primary means of identification and Federal Taxpayer Identification CHRIS: Person Full Legal Name Person Social Security Number Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_13 The military pay system shall support automatic due process debt notification to the military member when the debt is system generated based on retroactive processing (i.e.. Pay and allowance debts). When debts are received from external agencies or systems, that agency is responsible for due process and member notification. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_14 When a member receives final pay on separation, the military payroll system shall collect the debt's total remaining balancing under the general rule of offset without specific statutory authority. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_15 The amount collected from the member's pay each pay period (Debt Scheduled Collection Amount or Debt Scheduled Percentage Rate) is usually based on external factors such as (1) financial hardship and the member's ability to repay the debt, (2) member's request to accelerate debt repayment, (3) protect the interest of the government based on a short-notice separation, or (4) approval by the member's commander or other approval authority. As such, the military payroll system will deduct money as specified in the debt record without regard to maximum limitations for disposal pay. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_16 If the debt collection is based on a Scheduled Debt Percentage Rate, the military payroll system shall compute the Debt Collection Amount based on a percentage of the member's disposal pay.: Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_16_01 The military payroll system shall compute Gross Pay by adding together: 1. Basic Pay 2. All Special Pays 3. All Incentive Pays 4. All Reenlistment Bonuses Page 6 of 12

7 5. Gross pay does not include allowances or reductions in pay, such as forfeitures and the Montgomery GI Bill. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_16_02 The military member shall compute Disposable Pay by deducting the following from the member's Gross Pay: 1. Federal Insurance Contributions Act (FICA) 2. Armed Forces Retirement Home 3. Federal Income Tax Withholdings (FITW) 4. Servicemembers Group Life Insurance (active duty only) 5. Family Servicemembers Group Life Insurance (active duty only) 6. Traumatic Servicemembers Group Life Insurance (active duty only) 7. State Income Tax Withholdings (SITW). Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_17 The military payroll system shall support the following recipient information requirements for debt collections: 1. Individual or blanket check payments to government or non-government agencies 2. Individual or blanket EFT payments to government or non-government agencies 3. Transfer between Appropriations 4. Intra-Governmental Payment and Collection System (IPAC) Delinquent Debt Management Guidance Package, Appendix E Department of Defense R, Vol. 3, Chapter 3 Department of Defense R, Vol. 5, Chapter 10 Department of Defense R, Vol. 5, Chapter 24 Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_18 The military payroll system shall interface with the applicable accounting system's Accounts receivable systems and report debt status for all appropriated fund debts as follows: 1. Create accounts receivables records for system generated pay and allowances debt if collection in full is not made in the same pay period for example: a. Retroactive processing b. Partial, casual or advance payments c. SGLI arrears d. Excess leave e. Separation debts f. Bonus recoupment Page 7 of 12

8 g. Note: When debts are received from external agencies (i.e. DTS, travel, commercial services, overweight HHG, etc.) for payroll offset, the responsible agency must create the accounts receivable record. The military payroll system will then report debt status and debt collection action 2. Update all accounts receivable status when: a. Payroll offset starts b. Member separates and payroll offset is terminated c. Debt collection is suspended or terminated due to a remission, waiver, rebuttal, or appeal d. Debt collection is deducted from the military member e. Debt is paid in full, cancelled or the original debt amount is changed f. Cash collections g. Debt Collection is suspended based by regulatory requirements such as Combat Zone/Combat Operation Debts or advance payments Delinquent Debt Management Guidance Package, Appendix E Department of Defense R, Vol. 3, Chapter 3 Department of Defense R, Vol. 4, Chapter 3 Department of Defense R, Vol. 7A, Chapter 32 Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_19 The military payroll system shall support assessment of interest, penalty, and administrative charges on delinquent debts as computed by the accounts receivable accounting system Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_20 The military payroll system shall not automatically refund monies that were erroneously collected the member's pay. These monies must be refunded from the appropriation from which the excess payment was made, and an off-line disbursement voucher is generally required. For non-appropriated debts (i.e., AAFES, NEXCOM, etc.), monies erroneous collected from the member's pay shall be refunded by the agency who received payment. Department of Defense R, Vol. 4, Chapter 3 Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_22 If the reason for the debt is based on an overpayment of non-taxable pay or allowances (i.e., BAH, COLA, OHA, etc.), then the original payment loses its identity as a non-taxable pay or allowance. As such, the debt amount is considered taxable wages and subject to both Federal and State tax withholding. The military payroll system shall increase the tax accumulators both Federal Tax Taxable Wages Year-to-Date and State Taxable Wages Year-to-Date Amount for year-to-date taxable wages for the current tax year. Exception: If the pay and allowances were earned in a Combat Zone Tax Exclusion location, then payment is not taxaale. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_22_01 For taxable pay and allowances debts, the military payroll system shall reduce the Federal Tax Taxable Wages Year-to-Date Amount and State Taxable Wages Year-to-Date Amount by any amounts recovered from the member in the same calendar tax year as when the debt was identified or established. For example, if a debt Page 8 of 12

9 for $1,000 was created in calendar year 2010, and $500 was recovered in calendar year 2010, the Federal and State Taxable Wages Year-to-Date amounts are reduced by $500. However, no reduction is made if monies are recovered in calendar tax year 2011 or after. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_22_02 If the reason for a taxable pay and allowances debts was based on a taxable pay or allowance and the recovery of the overpayment is waived remitted, or canceled, then the military payroll system shall not adjust or reduced the Federal Tax Taxable Wages Year-to-Date Amount and State Taxable Wages Year-to-Date Amount. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_22_03 If the reason for a taxable pay and allowances debts was based on a non-taxable pay or allowance and the recovery of the overpayment is waived remitted, or canceled, then the military payroll system shall adjust or reduced the Federal Tax Taxable Wages Year-to-Date Amount and State Taxable Wages Year-to-Date Amount. Such reduction is applicable only if the debt was waived remitted, or canceled in the same calendar tax year as when the debt was originally identified or created. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_23 If the member has insufficient funds to collect the full amount of the debt based on the Debt Scheduled Collection Amount Debt or Scheduled Percentage Rate, then the military payroll system shall reduced the collection amount and collect the maximum amount possible. USC, Title 5, Pay Administration, Chapter 55 Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_24 The military payroll system can support the capability to start, stop, change or suspend debt collection and, if needed, provide member notification; for example: 1. Payroll offset 2. Due Process 3. Remission, Rebuttal and Waiver 4. Debt Cash Collections 5. Debt Forgiveness 6. Debt Cancellation Delinquent Debt Management Guidance Package, Appendix E Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_25 If the reason for the debt is based on an overpayment of non-taxable pay or allowances (i.e., BAH, COLA, OHA, etc.), then the original payment loses its identity as a non-taxable pay or allowance. As such, the debt Page 9 of 12

10 amount is considered taxable wages and subject to both Federal and State tax withholding. The military payroll system shall increase the tax accumulators both Federal Tax Taxable Wages Year-to-Date and State Taxable Wages Year-to-Date Amount for year-to-date taxable wages for the current tax year. Exception: If the pay and allowances were earned in a Combat Zone Tax Exclusion location, then payment is not taxable. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_25_01 For taxable pay and allowances debts, the military payroll system shall reduce the Federal Tax Taxable Wages Year-to-Date Amount and State Taxable Wages Year-to-Date Amount by any amounts recovered from the member in the same calendar tax year as when the debt was identified or established. For example, if a debt for $1,000 was created in calendar year 2010, and $500 was recovered in calendar year 2010, the Federal and State Taxable Wages Year-to-Date amounts are reduced by $500. However, no reduction is made if monies are recovered in calendar tax year 2011 or after. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_25_02 If the reason for a taxable pay and allowances debts was based on a taxable pay or allowance and the recovery of the overpayment is waived remitted, or canceled, then the military payroll system shall not adjust or reduced the Federal Tax Taxable Wages Year-to-Date Amount and State Taxable Wages Year-to-Date Amount. Voluntary_and_Involuntary_Debt_Collections_Computation_31_001_25_03 If the reason for a taxable pay and allowances debts was based on a non-taxable pay or allowance and the recovery of the overpayment is waived remitted, or canceled, then the military payroll system shall adjust or reduced the Federal Tax Taxable Wages Year-to-Date Amount and State Taxable Wages Year-to-Date Amount. Such reduction is applicable only if the debt was waived remitted, or canceled in the same calendar tax year as when the debt was originally identified or created. Appendix A: Common Human Resource Information Standards Academic Institution Address Academic Institution Address is the postal address, to include all aspects of U.S. and non U.S. postal addresses, of an academic institution. Allottee Mailing Address Allottee Mailing Address is the mailing address of the person or institution to whom a discretionary or voluntary non-discretionary allotment is made payable. Civilian Employment Organization Name Civilian Employment Organization Name is the title of a civilian organization that employs a DoD Military Service member. Dependent Residence Address Dependent Residence Address is the complete postal address (to include all aspects of U.S. and non U.S. postal addresses) at which a DoD Military Service member's dependent resides. Page 10 of 12

11 Financial Institution Depositor Account Number Financial Institution Depositor Account Number is the identification number of a specific account, assigned by a financial institution, designated for electronic funds transfer (EFT) of a person's federal wage, salary, or retirement payments. Financial Institution Depositor Account Type Financial Institution Depositor Account Type is the specific type of account a person holds with a financial institution designated for electronic funds transfer (EFT) of his/her federal wage, salary, or retirement payments. Financial Institution Name Financial Institution Name is the name of a bank, savings association, or credit union designated for electronic funds transfer (EFT) of a person's federal wage, salary, or retirement payments. Legal Residence Address Legal Residence Address is the complete postal address (to include all aspects of U.S. and non U.S. postal addresses) at which a person resides for tax purposes. Member Advance Pay Repayment Amount Member Advance Pay Repayment Amount is the dollar amount of a payment made by the DoD Military Service member to a DoD Military Service towards the repayment of an advance payment. Member Debt Remission Determination Amount Member Debt Remission Determination Amount is the dollar amount of an indebtedness in which a DoD Military Service member is not required to return to the United States government. Member Debt Repayment Determination Amount Member Debt Repayment Determination Amount is the dollar amount of an indebtedness in which a DoD Military Service member is required to return to the United States government. Member Debt Type Member Debt Type is the classification of a DoD Military Service member s indebtedness to the United States government. Member Discounted Meal Collection Amount Member Discounted Meal Collection Amount is the dollar amount of an enlisted DoD Military Service member's pay account deduction for government-provided meals. Member Repayment Payment Amount Member Repayment Payment Amount is the dollar amount of a DoD Military Service member s monthly repayment of indebtedness. Member Repayment Payment Start Date Member Repayment Payment Start Date is the calendar date on which a DoD Military Service member s payments for indebtedness begins. Member Repayment Payment Stop Date Member Repayment Payment Stop Date is the calendar date on which a DoD Military Service member s payments for indebtedness ends. Military Unit Name Military Unit Name is the title given to a unit within a DoD Military Service's force structure. Organization Name Organization Name is the full name of an organization within the DoD global force structure and/or a public or private organizational entity of interest to the DoD. Person Full Legal Name Person Full Legal Name is an official label given to a person that is found on the birth certificate, marriage license, adoption decree or similar government issued document. Person Mailing Address Page 11 of 12

12 Person Mailing Address is the complete postal address (to include all aspects of U.S. and non U.S. postal addresses) where a person receives mail from a postal service. Person Residence Address Person Residence Address is the complete postal address (to include all aspects of U.S. and non U.S. postal addresses) at which a person resides. Person Social Security Number Person Social Security Number [is] a unique number assigned by Social Security Administration (SSA) to identify a person when reporting wages, paying taxes and collecting benefits. Page 12 of 12