IL Child Support & Garnishment Updates

Transcription

1 IL Child Support & Garnishment Updates Maurice Franklin- Operations Manager Maritza Diaz- Compliance Lead Latonia Jennings- National Medical Support Notice Lead Contact Us: (800)

2 Income Withholding Income Withholding is the court or administratively ordered deduction of a specified amount from a parent s income for payment of child support All employers must honor the Income Withholding for Support form. Out-of-state Orders/Notices are valid throughout the country, including U.S. territories. An employer is considered served if any company address is used. Be sure all of your staff know where to forward these documents within your company to avoid any noncompliance penalties.

3 Withholding & CCPA (Consumer Credit Protection Act) The Consumer Credit Protection Act set limits on withholding from an employer s disposable income based on his/her current family situation and child support payment history. The CCPA protects the employee from having excessive amounts withheld. Although most state follow the federal limits, some states have enacted laws that provide even more protection of the employee s income.

4 Withholding & CCPA (Consumer Credit Protection Act) The withholding limits set by CCPA and adopted by Illinois are: 50% if the non-custodial parent has other dependents and owes no arrearages or is less than 12 weeks in arrears. 55% if the non-custodial parent has other dependents and is over 12 weeks in arrears 60% if the non-custodial parent has no additional dependents and owes no arrearage or is less than 12 weeks in arrears 65% if the non-custodial parent has no other dependents and is over 12 weeks in arrears. For additional assistance in calculating withholding amounts, please visit the employer website at

5 Withholding Calculations The Allocation Calculator, found on employer website, simplifies the calculations involved in withholding the correct amounts for each order. The calculator is intended to provide employers the preferred allocation of child support across multiple orders according to federal guidelines and Illinois regulations. Find the Allocation Calculator at:

6 Priorities For Withholding You might receive a NMSN in Conjunction with an Income Withholding for Support from or by itself. If both are received, deductions should follow the following priority scheme:

7 Priorities For Withholding 1. Current Support (if applicable) 2. Any health premium required by the employer (except, if there is insufficient income to pay the entire premium, then no amount should be deducted for the premium) 3. Arrearage 4. Delinquency 5. Notice of Levy (wage garnishment other than a federal tax levy entered before the child support order)

8 Payment Remittance The following payment information is required on the remittance form: The county and state where the child support order was entered The docket number The name of the employee The social security number of the employee The mount of the payment for each employee if the remittance is for more than one employee The amount of the payment for each docket number ILLINOIS STATE DISBURSEMENT UNIT (SDU) PO Box 5400 Carol Stream, IL (877)

9 National Medical Support Notice (NMSN) When medical insurance coverage is ordered through employment, the National Medical Support Notice (NMSN) is sent to the employer or union to enforce the requirements to enroll the employee s dependents in a healthcare plan. The NMSN packet includes Part A and Part B.

10 National Medical Support Notice (NMSN) Part A: Notice to Withhold for Health Care Coverage Employers Response Form The employer is expected to return the Employer Response Form to the issuing agency within 20 days of receipt if the employees cannot be enrolled for one of the following reasons: The employer does not provide insurance The employee is not eligible for insurance The deductions exceed withholding limits The employer has a mandatory waiting period prior to enrollment

11 National Medical Support Notice (NMSN) Part B: Medical Support Notice to Plan Administrator Plan Administrator Response Health Insurance Report (signed with a contact number for further clarification) If medical coverage is available through the employer, the employer should forward Part B to the Plan Administrator. The Plan Administrator is to complete the Plan Administrator Response Form and the Health Insurance Report and return both of them to the issuing agency within 40 days of the original date that the NMSN was sent. If you have any questions regarding the NMSN, please call (888) NMSN Instructions are available at

12 New Hire Reporting State and Federal statutes require all employers to report new and rehired employees within 20 days of their date of hire. Reference: Illinois Code Section 820 ILCS 405/1801 Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 42, USC 653a Employers are required to report all employees: Full-time Part-time Temporary or Seasonal (if an employee fills out a W-4 form, they must be reported) Employers must also report Rehires (anyone who has been off payroll for 60 days or more)

13 New Hire Reporting (cont d) Where to Report: Online- By Fax- (217) (24hour fax line) By Mail- Illinois New Hire Directory PO Box Springfield, IL By Magnetic Cartridge or Diskette For information regarding the file format for reporting via magnetic cartridge or diskette, call (312) By

14 Employer Customer Service or

15 Thank You! Next Year 20 th Annual IL Statewide 2013 Information Coming Soon!