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

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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

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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

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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

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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.

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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

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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

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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