Division of Child Support The Basics of Child Support for Employers

Division of Child Support The Basics of Child Support for Employers 800-562-0479 (DCS Employer Relations) www.childsupportonline.wa.gov [email protected]

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Agenda Basic Understanding of Employer Responsibilities & Options Recent changes in legislation and policy EFT payment options Resources COVID Specific Scenarios Q&A 07/04/2024 3

Nationwide, child support lifts a million people out of poverty every year. 07/04/2024 4

You Make an Impact! DCS receives over 370,000 payments each month Employers account for 76.5% payments received Nationwide – 14.7 Million Children served in 2018 Employers reduce WA tax burden by 137 million a year FFY 2019 Collected 4.08 / 1 Spent 5

Your Responsibilities 1. 2. 3. 4. 5. 6. 07/04/2024 Report new hires and rehires within 20 days Answer withholding notices within 20 days Begin withholding next pay date Remit within 7 days Enroll dependents in medical plan Notify DCS when employee stops working 6

New Hire New Hire Reporting Reporting 07/04/2024 Copyright 2015, Division of Child Support 7

New Hire Reporting What is New Hire Reporting? – ALL New Hired and Rehired employees must be reported within 20 days – Rehired - Employees returning after more than 60 days or need a new W-4 Who is responsible to report? – Employers (payroll service) Why is reporting important? – Timely enforcement of child support – Saves millions in overpayments 07/04/2024 8

What To Report Report the following employee data elements Name Address Social Security Number Date of Birth Date of Hire (the date the employee first works for pay) Report Employer information 07/04/2024 Name and mailing address FEIN 9

How to Report Report within 20 days via: Online Reporting: – Internet: https://secure.dshs.wa.gov/dcsonline – Upload large files, confirmation email Fax: 800-782-0624 Phone: 800-562-0479 Mail: POB 9023, Olympia WA 98507-9023 Multi-State Notification: 410-277-9470 www.newhire.wa.gov 07/04/2024 10

https://secure.dshs.wa.gov/dcsonline 11

Frequently Asked Questions Isn't this information available through quarterly wage reporting? Quarterly wage data can be outdated by six months or more. With New Hire Reporting, information is available within 20 days 07/04/2024 12

I am a Multistate Employer Do I have to report to each state in which I have employees? You may select one state where you have employees working to report all New Hires – Online Multistate Notification Form: https:// ocsp.acf.hhs.gov/OCSE/ – Call 410-277-9470 07/04/2024 13

I’m Not Sure if I Submitted Everyone What should I do? Submit all of the employees you hired or rehired since your last quarterly reporting 07/04/2024 14

Oops, I Made a Mistake! How should I fix it? If it is the same day and through DCS Online, you can edit your report In all other situations, just resubmit 07/04/2024 15

New Hire Reporting Questions? www.newhire.wa.gov [email protected] 1-800-562-0479 07/04/2024 16

Income Withholding Withholding Income and Medical Support In this section you will learn: In– Child this section Support you lawswill and learn: – Child Support laws and requirements requirements – How to process and answer – How to process and answer Income Withholding Orders Income Withholding Orders – (IWOs) Where and when to send withheld funds – Where and when to send withheld funds – The basics of the National Copyright 2015, Division of Child 07/04/2024 Medical Support Notice Support 17

Most child support is collected through income withholding when the noncustodial parent is working. 07/04/2024 18

Withholding Basics Effective the day the withhold is received Withhold from the next paycheck Withhold on employer pay schedule – Broken down on the notice Withhold from net earnings – Mandatory Deductions Only Withhold amount up to 50% of net Remit within 7 days 07/04/2024 19

Day Labor Withholding Changes Past: Withhold 50% daily until the monthly amount is withheld Effective October 15, 2018: Withhold 50% of their pay each day until the weekly prorated amount is withheld each work week 07/04/2024 20

What About Bonuses and Other Lump Sums? Are addressed in the Order to Withhold May not be required Options to Report These Payments https://www.acf.hhs.gov/css/employers/childsupport-portal Email: [email protected] Call: 360-664-5246 07/04/2024 21

Information to Report Employer name Employer contact information Employee names SSN or case numbers If known – Bonus Amounts – Payout Dates 07/04/2024 22

What Has Changed? Effective December 2017 One Income Withholding Order (IWO)per case Federal mandate Implementation by Employer Can send in one response Add up all of the withholding amounts Send in one payment 07/04/2024 23

D L O r e v o C r e tt e L 07/04/2024 24

r e tt e L r e v o C O W E W I N e n o for ase c r pe 07/04/2024 25

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A d d e d FA Q s fo r o ne IWO 07/04/2024 Copyright 2016, DSHS Division of Child Support 27

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New Answer Form for one IWO per case 07/04/2024 Copyright 2015, Division of Child Support 30

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What do you know? An employer has days to answer a withholding notice. 20 days 07/04/2024 33

What do you know? An employer has working days to remit withheld funds. 7 days 07/04/2024 34

What do you know? True or False: An employer is required to notify DCS when an employee stops working? True. If an employer is withholding child support and the employee stops working, notify DCS. 07/04/2024 35

What do you know? An employee asks you to stop withholding child support because his child graduated from high school. Do you stop withholding based on this information? NO! Only stop withholding when you receive a written notice from DCS. 07/04/2024 36

What do you know? True or False: Child Support withholding orders take priority over most other garnishments True, with the exception of the IRS. Contact DCS if there is a question. 07/04/2024 37

Medical Support Enforcement National Medical Support Notices May be sent with IWOs or on their own Requires employers to: Enroll children into health insurance programs Respond with insurance information Provides the employer with the premium limitation 07/04/2024 38

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Part A Employers For Employers Handling Their Own Enrollments – Enroll kids in medical plan within premium limit – Complete Response Forms – Notify DCS when child removed from coverage 41

Part B Plan Administrator/Employer Enrollments handled by third party or union – Forward Part B to third party or union – Enroll kids in medical plan within premium limit – Complete Response Forms – Notify DCS when child removed from coverage 42

Income Withholding and the National Medical Support Notice Questions? 800-562-0479 [email protected] www.childsupportonline.wa.gov 07/04/2024 43

Payments Remit within 7 days of withholding the funds 07/04/2024 44

Mandatory Electronic Payments Effective January 2019 Mandatory Electronic Payments for most employers The new law applies to all companies who: Have 10 or more employees Have less than 10 employees, but receive IWOs for more than one employee Use a payroll processing company Are required to electronically file and pay taxes to DOR 07/04/2024 45

Benefits of Electronic Payments You Save Time and Money! Fewer steps, less paper Safer and less expensive Accuracy and security built into the process Public Savings Reduced processing cost Families receive money more quickly 07/04/2024 46

It takes 10-15 employees each day to process the 17% of payments we receive by check 07/04/2024 Copyright 2015, Division of Child Support 47

07/04/2024 One employee processes the 83% of child Copyright 2015, Division of Child support payments electronically Support 48

Payments FAQ How soon must I send the child support payment that was withheld from an employee’s paycheck? You must send the payment within 7 working days of paying wages to the employee. 07/04/2024 49

Payments FAQ Can I charge a processing fee to the employee? Yes. Employers can charge a setup fee of 10 for the first withholding and 1 for each withholding thereafter. 07/04/2024 50

Payments FAQ I received a child support withhold from another state. Should I send payments directly to the other state? Yes. You must send payments to the state that issued the income withholding order. If you are already withholding for this employee for WA, please contact us. 07/04/2024 51

Any Questions? Electronic Payments 800-468-7422 Other Questions 800-562-0479 [email protected] www.childsupportonline.wa.gov 07/04/2024 52

COVID 19 - FAQ If I layoff employees do I need to tell DCS even if I plan to rehire them? Yes, if they have an OWI in place, let DCS know – Email: [email protected] – FAX: 360-586-3274 – Call: 1-800-562-0479 07/04/2024 53

COVID 19 - FAQ What do I do when an employee working reduced hours asks me to stop withholding because DCS is getting their unemployment? Keep withholding and ask your employee to contact DCS – DCS may release one of the actions – Provide the employee your contact information – Remember the 50% limit 07/04/2024 54

COVID 19 - FAQ When a laid off employee starts working again, do I need to report them as a New Hire or can I just start withholding again? Yes, you can start withholding If you rehire them within 60 days, then you do not need to report them as a new hire – Refer the employee to DCS if they have any questions 07/04/2024 55

Support from the Federal OCSE Free Online Options Electronic Withholding Orders Online Termination Reporting Bonus and Lump Sum Reporting More information Visit: https://www.acf.hhs.gov/css/employers E-mail the Federal Employer Services Team at [email protected] for demonstration 07/04/2024 56

Other Resources for Employers Guide to Doing Business in Washington www.business.wa.gov www.bizguide.wa.gov DCS Employer Info, Webinars & Workshops www.childsupportonline.wa.gov 07/04/2024 07/04/2024 Copyright 2010, DSHS Division of Child Support Copyright 2015, Division of Child Support 57 57

Employer Relations Team We are here to help 1-800-562-0479 [email protected] EFT Payments: 800-468-7422 www.childsupportonline.wa.gov www.newhire.wa.gov 07/04/2024 58

Division of Child Support Thank You For Attending 800-562-0479 (DCS Employer Relations) www.childsupportonline.wa.gov [email protected]