Employer News. National Child Support Mission. Second Quarter. August 2009

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1 Employer News Second Quarter All newsletters are downloadable from the MiSDU Website National Child Support Mission Volume 3 Issue 2 Child support can never be identified as a state aid reimbursement, revenue-producing device for Federal and State governments; it is a family-first program that is intended to ensure families self-sufficiency by making child support a more reliable source of income. The National Child Support Enforcement Strategic Plan is the product of a collaborative effort that maps how the program will proceed to meet it s s commitments to children and families. A few highlights that distinguish the Family First Program Plan from previous plans: 1. Families come first. Child support should be a reliable source of income for families. More than ever, the money we collect on behalf of children actually goes to the children. 2. Meaningful medical support for children. In this Plan, securing private health-care coverage is a stand-along goal and not merely a subset of other goals. 3. Preventing the accumulation of unpaid support through early intervention. The new approach requires a more customized customer service philosophy and a more effective allocation of tasks among automation and child support professionals. 4. Accountability. In this Plan, OCSE commits to measuring its own performance. The mission of the Child Support Enforcement Program is to enhance the well-being of children by assuring that assistance in obtaining support, including financial and medical, is available to children through locating parents, establishing paternity, establishing support obligations, and monitoring and enforcing those obligations. You may read this Plan in its entirety at: Strategic_Plan_FY pdf Inside this issue: MiCase Employer Reporting Test your Knowledge IWO Process August 2009 A Publication of MiSDU Outreach

2 If an employee or an employee s payee has a payment question, employers can direct parents to the MiCase Website for accurate and up-to-date account information. "We want to make the process of paying, receiving and accounting of child support as easy as possible for parents," said Marilyn Stephen, director of the Michigan Office of Child Support. "MiCase continues our commitment to offer the most cost-effective tools for our customers. Michigan Child Support Program Launches MiCase Web Site (Paraphrased from State of Michigan Website) May 15, 2009 Non-custodial and custodial parents can now access the State of Michigan s new, secure web site to review child support payment and case information. The new site is located at The MiCase Web site provides custodial and noncustodial parents a central access point to individual child support account information, including the most recent payment and monthly account balances received or disbursed. Parents can also schedule hearing dates, view online payment summaries, monthly amount owed and other child support case information for up to 18 months in the past. Parents who wish to use MiCase can follow the user-friendly directions on the Website to sign up for an account. Within a few days of signing up, they will receive their unique MiCase ID and secure password in the mail. Both the ID and password are required to access child support account information relative to each person s individual support case on the MiCase Website. Accountholders and payees who make full use of the new Website will find that MiCase can be an effective customer service tool that will provide any account information that was previously provided by telephone. Employers who collect child support obligations from non-custodial parents use automatic payments methods such as online, EFT, and phone payments to send money to the MiSDU. Parents can also take advantage of automatic receipt methods such as direct deposits or debit cards to receive payments and search the online database for unclaimed child support money at

3 Effective September 18, 2009, NACHA Operating Rules require all international payments made via the ACH Network to be identified as International ACH Transactions using a new Standard Entry Class (SEC) Code -- IAT. The law requires only that Financial Institutions be prepared to accept IAT. At this time there is no requirement to send IAT outbound. Please contact the MiSDU Employer Outreach Department at prior to sending any new EFT files to the MiSDU that will contain the SEC Code to ensure proper processing of your future child support payments. Employer Reporting What??? The end of the work relationship. When the employer-employee work relationship ends for any reason, including retirement, the employer must notify the enforcement agency the Friend of the Court office that issued the order. Why??? The child support enforcement office the FOC - should know that you are no longer paying your former employee s child support obligation. The FOC needs to issue an IWO to the new employer, if applicable. When??? As soon as possible following termination of employment. How??? Check the appropriate box on the last page of the IWO form in the Notification of Termination of Employment section. The person never worked for you. The person has left your employment. then ~ Add the termination date, last know address, and phone number. Add last payment information. If known, add new employer. Return to the Friend of the Court that issued the IWN to you. Don t Paint Yourself into a Corner Report New Hires Only 6 data elements are required for new hire reporting: Employee name Employee SSN Employee Address Employer Name Employer FEIN Employer Address New hires are matched against child support records at State and National levels to find parents who are not paying child support. Reporting saves taxpayer money by detecting and reducing unlawful/erroneous public assistance, unemployment benefits, or workers compensation claims. Employers play a vital role in ensuring the financial security of millions of children by working cooperatively with the Child Support Enforcement Program and following Federal and State legal mandates. 3

4 G. The Child Support Program provides a system for ~ 1. Establishing paternity 2. Establishing support orders 3. Collecting support payments 4. Disbursing funds 5. All of the above H. An employer should withhold wages only if notified by the court. I. When transmitting an EFT file, the medical indicator is optional. J. The following diagram illustrates the payment flow between the employer and the MiSDU. I know! I know!! A. MiSDU accepts PPD files from employers. B. Employers should submit support obligations within 3 days of pay date. C. Employers should notify the FOC if employee resigns/quits/is released from employment. Answers to quiz on page 5 D. Employers may use Case Identifier OR Order Identifier when remitting payments. E. Incorrect payment information can cause delays in payment processing.. F. To begin electronic payments, employers need MiSDU s bank information only. Perfect. 4

5 Test Your Knowledge answers. A. False. Employers must use one of two ACH approved methods. Always use the CCD+ or CTX format. B. True. Employers should submit the obligor s payment no more than 3 days after the pay date. C. True. Employers should notify the court of any change in employment. The court will adjust the IWO accordingly. D. True. Your employee s obligation can be identified by the case identifier OR the order identifier. E. True. Sending incorrect case information could cause delays in processing because of the additional research needed to post the payment. F. False. To begin processing EFT payments, your employee obligations must first be validated against the Child Support system. G. 5 - All of the above. The Child Support Enforcement Program provides a system for establishing paternity, establishing support orders, collecting support payments, and disbursing funds. H. True. If support is to be withheld, the court will notify the employer of the appropriate amount that should be withheld. I. False. The medical indicator is a mandatory field and should always be populated with Y or N yes or no. J. True. The diagram showing the payment trail is a true representation of the payment flow from employer to SDU. Please call option 1, or misduoutreach@michigan.gov if you have question about any of the items above. 5

6 Notes Michigan New Hires Center The Michigan New Hires Operation Center does not have access to specific child support information, and does not have the ability to answer questions directly related to child support. Employer Responsibility The IWN remains in effect until the employer is provided with a new or terminated IWN from the FOC. If an employee is laid off and returns to your employ, reactivate employee IWN. Employee Responsibility Employees who have been laid off or separated from employment that results in a significant reduction in income may be eligible for a modification of child support. Employees must contact their case worker at the Friend of the Court to discuss their options. Payment Related Correspondence Sometimes it is necessary for employers to communicate changes to an employee s status, including notices of termination, non-negotiable checks, and change of address requests. Do not include these or other notifications in the same mailing as your payment. Send payment related correspondences to the FOC that issued the IWN. The IRS A Federal IRS tax levy is the only garnishment to take a precedence over child support. The tax levy must be entered prior to the date the support order was established (date found on IWN) not the date the IWN is served on the Employer. Employer Advisory Group Addressing the needs of employers and planting the seeds of responsiveness throughout the business community. If you are an employer and would like your voice heard, or if you would like to shape employer enhancements as a member of the Employer Advisory Group, please call , or misduoutreach@michigan.gov.! "!# "$ $ %& '(')( * +,-(-.,)(,((,/.(,() / A Publication of MiSDU Outreach 6