Lauren Johnson, Policy Coordinator Emily Gregg, Policy Supervisor Robert Duck, Fiscal Manager.
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Transcript of Lauren Johnson, Policy Coordinator Emily Gregg, Policy Supervisor Robert Duck, Fiscal Manager.
Lauren Johnson, Policy CoordinatorEmily Gregg, Policy Supervisor
Robert Duck, Fiscal Manager
Types of Child Support CasesFour Different Types of Child Support Cases
“IV-D” “IV-A”
“IV-E” “Non IV-D”
Referrals
Both ran by DHS
child support maintained privately, such as following a
divorce
Where child is being cared for by someone other than a parent, like a relative or the foster care system
Cases where the custodial parent is receiving public assistance from the state
Cases being established, enforced and/or modified by the Tennessee Child Support Program
The Title IV-D Child Support Program
A national program authorized and defined by federal statute
A federal, state, tribal, and local partnership to assist families with self-sufficiency
A program administered in Tennessee by the Department of Human Services
IV-D Child Support in TennesseeWhat We Do
Establishing paternity
Establishing child support orders
Enforcing child support orders
Collecting & distributing child support payments
Child support locates the non-custodial
parent for the purposes of…
• 14.4 million custodial parents – 82% Women– 79% Are 30 years old or older– 68% White– 25% Black– 21% Hispanic
• 15.8 million child support cases
• $33.6 billion collected in support according to the FY2013 Office of Child Support Enforcement
• $32 billion collected in support(74% [$22.2 billion] collected through Income Withholding Orders)
Figures From Across our Great Nation
THANK YOU!!
Did You Know..
August is
Child Support
Awareness Month
Tennessee Child Support Performance Measures
• Paternity Establishment Percentage (PEP)
• Percentage of Cases with Orders
• Collection Rate for Current Support
• Percentage of IV-D Cases with Collection on Arrears
• Cost-Effectiveness
Tennessee IV-D Child Support Performance Trends
3.65%
5.90%
FFY2008 FFY2009 FFY2010 FFY2011 FFY2012 FFY201350%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
$500,000,000
$520,000,000
$540,000,000
$560,000,000
$580,000,000
$600,000,000
$620,000,000Federal Fiscal Year FFY 2008 – FFY 2013
Paternity Estab-lishment Percent-age (Statewide)
Percentage of Cases with Orders
IV-D Collection Rate for Current Support
Percentage of IV-D Cases with Collections on Arrears
Total Collections
0.28%
1.69%
P
• The Tennessee State Distribution Unit processes over $1.6 million in child support payments every day
• Child Support Collections Last year (SFY)
$611 million
• $590 million went directly into the hands of families
Tennessee Child Support Payments
Child Support Judicial District Map
Jud
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Over 20% of all cases with court orders are in Memphis
10519826%
29645774%
Judicial District 30 Caseload Size Comparison
Memphis Caseload (as of 10/5/13)
All Other JD's Combined
How Employers Help Our Efforts:Employer Responsibilities
Report new hires to the State within 20 days through https://www.tnnewhire.com/
Enroll children in health care coverage when ordered (withholding limits apply)
Income Withholding Order (IWOs) • Know them, accept them, love them:
http://www.acf.hhs.gov/sites/default/files/ocse/omb_0970_0154.pdf• Only the clerk of the court & DHS child support/contractors have authority to
issue IWOs (T.C.A. 36-5-501 et seq.)• Federal law requires the use of the IWO form in all child support cases
Remit payment within seven (7) days of the date the employee is paid
Notify child support services regarding lump sum payments
Report the termination of an employee to child support services 14
State matches the new hire data to child support obligations and issues Income Withholding Orders to employers
Prompt reporting helps to detect and prevent public assistance, food stamps and unemployment and workers’ compensation fraud by matches to these databases.
Other states can also conduct matches through the National Directory of New Hires to prevent public assistance fraud
15
New Hire Reporting: Why Its Important
New Hire Reporting
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Report new hires with the same FEIN (Federal Tax ID Number) that you use to report each New Hire's Quarterly Wage information.
Including a contact person & phone number is optional but extremely helpful. This information will be used in case the new hire's information is missing or illegible.
Hand written report are are often difficult to read & can increase data entry errors. Please use black ink & legible handwriting
New Hire encourages you to type the information and use size 12 font when possible!
New Hire Reporting: Helpful Hints
Internet: www.tnnewhire.com; register your company and report on-line or via a file upload
Mail: (for diskettes, magnetic tapes and cartridges, W-4's, lists and State Reporting form)– Tennessee New Hire Reporting
PO Box 17367Nashville, TN 37217
Fax: (for W-4's, lists, and State Reporting form) 1-877-505-4761
Questions/Problems: Contact MAXIMUS New Hire at (615) 726-5200 or online
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New Hire Reporting: Where to Report
Income Withholding Is Challenging!
• Knowing which state laws, rules, regulations to apply is difficult for employers
• Employers know that they can be liable if garnishment is processed incorrectly
• Some states require separate payments and methods of payment for fees and/or non-IV-D payments, causing additional administrative expenses for employers.
• In some states not all payments are directed to the SDU.
Send With
Payment
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Income Withholding Order
Page 2 of IWO• Signature Required
Who can issue IWOs in Tennessee?
Who cannot?
Use ‘Return to Sender’ box if form is incorrect in any way
Income Withholding Order Continued..
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Changes to IWO• Increased font size for improved readability
• State may change the font size if they wish
• Result of the changes is a 4-page document instead of 3 pages
• Added language in REMITTANCE INFORMATION section about finding withholding limits for non-employees in Supplemental Information
• Next steps– IWO form and instructions will be approved by OMB– OCSE will send an Action Transmittal to states– OCSE will inform employers and the state courts
Making IWO compliance easier—
New Tennessee Child Support Employer Line• (800) 446-0814 or by email at [email protected]• Can assist with questions about proration, IWO issues, etc.• http://www.tn.gov/humanserv/cs/cs_main.html
Electronic Funds Transfer (EFT) Payments
Employer Outreach efforts• Tennessee employers• Payroll companies• Groups/Associations• Online employer support
Where we are going
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• States, tribes, territories send income withholding orders (IWOs) electronically & employers accept & process them electronically
• Paperless!
• Most states are already using e-IWO
• 400+ companies/organizations on e-IWO
• Three (3) different options for e-IWO depending on your company needs
25
Making Your Life Easier: e-IWO
Companies on
e-IWO…
• ADP Payroll Solutions
• Walmart• JC Penny • FedEx
And MANY, MANY MORE!
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E-IWO States Map
E-IWO States1.) OCSE pulls e-
IWOs from the states
2.) OCSE separates the e-IWOs and groups them by employers
3.) OCSE sends e-IWOs (or Acknowledgment
PDFs or XLS) to employer securely via
the internet
4.) Employer (accepts or rejects) e-IWOs then
sends acknowledgements to OCSE
5.) OCSE then groups the acknowledged
e-IWOs by state
6.) Acknowledged e-IWOs are then sent back to each state
e-IWO Process
15
Want more information? Sign-up to attend a free webinar on e-IWO!
SeveranceVacation payoutsInsurance settlementsRetirement incentivesCommissions
Stock OptionsLottery WinningsAwardsPayments as a result of
verdicts
29
Bonus and Lump Sum Payments
Bonus and lump sum payments made to employees are considered income and may be garnished to collect past-due child support.
Examples include:
Provides employers ability to report bonus, lump sum or other type of payout online using web application
Allows employers to upload a file or enter information on DIS application about employees who are eligible for lump sum type of payment
OCSE compares info to its debtor file (non-custodial parents who owe past-due support) then returns matched to appropriate state child support agency
Through our partnership with employers, the Debt Inquiry Service makes a significant difference in the lives of millions of children.
30
Debt Inquiry Service (DIS)
31*As of July 16, 2013
States Participating in DIS
• Complete registration formo Can be found at:
http://www.acf.hhs.gov/sites/default/files/ocse/debt_inquiry_profile_form.pdf
o Or we can email you the form
• Send to: Cindy Holdren Employer Services TeamFederal Office of Child Support [email protected]: (240) 676-2808 Fax: (757) 257-4439
• Ms. Holdren can also answer any questions you may have32
How Employers Can Participate in DIS
Located in Nashville, Tennessee
Operated by our private contractor, Systems and Methods Inc. (SMI)
Currently average 375,500 payments processed per month
Total collections for the Tennessee Child Support were $611,865,498 for Federal Fiscal Year 2013
Customer service line for child support custodial and non-custodial parents: (800) 838-6911 or (615) 253-4394
Email contacts: [email protected] or [email protected]
Tennessee State Disbursement Unit
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1. Check or money order mailed to the following address: Tennessee State Disbursement Unit PO Box 305200 Nashville, Tennessee 37229
2. Electronic Funds Transfer (EFT) via Automated Clearing House (ACH)
3. Web pay through the child support website
4. Credit card payments for registered users
We encourage all our partners to make the switch to EFT or Web pay!
Payment Options
34
Benefits of EFT and Web Pay
• Increased accuracy – fewer misapplied or misidentified payments, fewer complaints and phone calls
• Faster – families receive payments sooner
• Increased reliability – scheduled payments are not lost or delayed
• Reduced costs – no postage, flat fee or no fee
• Reduced paperwork – no paper checks, envelopes, or turnaround documents needed
• Reduced opportunity for theft and fraud
• Saves the State and taxpayers money
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Web Pay Web Pay (or ACH Debit) is where
an employer authorizes the State Disbursement Unit to draft their bank account for IWO payments
We will then draft your bank account on the date you scheduled the payment
Similar to bill pay through your bank
EFT EFT/EDI (ACH Credit) is the
process of sending child support payments electronically through the ACH network.
Offers alternative to preparing checks & remittance documents
Your bank will draft your account for the appropriate amount and transmit the payment to the Centralized Collections Unit
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Web Pay VS EFT
How to Use Web Pay• Can be accessed from our website:
https://tn.smartchildsupport.com/
• Select the ACH/Debit option and follow instructions
• Good option for smaller employers
• Capable of both one time payments and recurring payments
• Similar to paying bills online with your bank37
Select payment method
EFT/EDI
ACH Debit / Credit Card
Download Remittance Document
This Web Site Does Not Accept Payments Drawn On A Foreign Bank Account
• Tennessee Child Support can accept EFT payments through the Automated Clearing House banking network using NACHA CCD+ or CTX format
• Visit our website at https://tn.smartchildsupport.com
• Four easy steps to implementing EFT/EDI for child support withholdings:
Overview: How to Enroll in EFT
38
Register for an account if
you are a new user or login on if existing
user
Reconcile Employee data
through site
Have EFT/EDI file created by another entity or have your EFT/EDI file
created by our website
Transmit payment
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1. Register for an Account
• Key at least the first three letters of the employer and click Search
• Choose the appropriate employer name• If the appropriate employer is not listed, click Previous and
key different information in for search criteria• If the employer is not on our child support system
(TCSES),click on Create Employer Record
If uploading employee information for EFT/ EDI (ACH credit), select Upload Reconciliation Spreadsheet
If uploading employee information for ACH debit, click Schedule New Payment from the Select an Option page
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2. Reconciliation
3. Coordinate with Your Financial Institution
If reconciling information for ACH debit, click Continue to provide bank account information.
If reconciling information for EFT/ EDI, the Reconcile Employee Information page is displayed with the client’s bank account information .
The employer needs to work with their payroll company or data processing department and their bank to generate and transmit a file that includes the withholdings from their employees’ pay along with posting information.
*Note: If the employer does not have access to Microsoft Excel, they can manually enter employee information.
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4. Transmit Payment! Financial Institution makes payment
Live Chat Available Online
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CONTACT US
Contact Information
Child Support Customer Service Voice: 615-253-4394 (local) or 800-838-6911 E-mail (for web payment inquiries only): [email protected]
Home | Contact Us | Privacy Policy | Security | FAQs
Please read our Terms and Conditions and our Web Accessibility
• Once the account is created & banking information put in, you can: Schedule a New Payment
Cancel a Scheduled Payment
Edit Bank Account Info
View Online Payment History
Choose payment frequency and start date
Update Contact Info
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EFT & Web Pay: User Friendly
Best Practices When sending paper checks, only submit identifying information in
one place
We must process payments within two (2) business days per Federal law, therefore, we cannot hold payments
Always try to send payments according to the IWO
Please do not reverse EFT payments or stop payment on checks without first contacting us
Problems: Call us as soon as possible
We will work with you to find a solution 44