Child Support: What Payroll Doesn’t Know Can Hurt You
Webinar Details $219
- Rated:
- Webinar Length: 100 Minutes
- Guest Speaker: Vicki Lambert
- Topic: Taxation and Accounting, Human Resources, Payroll
- Credit: CPE 2.0, HRCI 1.5, SHRM 1.5, ATAPR 1.5, ATAHR 1.5
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This webinar focuses on child support garnishments and includes best practices for processing all garnishments but especially child support in a payroll department. The webinar includes the rules and regulations governing child support as well as calculation examples.
To bring a national standard to child support withholding laws, the Federal government has enacted laws that require states to adopt certain rules when setting their own standards for implementing child support requirements. These requirements include deadlines for withholding and remitting payments, filing procedures, and penalties and fines for violations. But the states are free to set up their own rules and regulations as long as they fall within those guidelines and many do differ from the minimum federal requirements. Payroll departments must know both the federal laws and the state laws and must determine which one applies to the child support withholding order.
In addition to these laws and regulations, the federal rules now require that a standard Income Withholding Order (IWO) be used for all child support withholding garnishments. This webinar will review this form and its requirements. And although the IWO can include all the information necessary to comply with the order, employers must familiarize themselves with both federal and state regulations to avoid penalties and liabilities. In addition, state law may address some issues the federal law is silent on such as allowing for the collection of administration fees and how to calculate child support withholding when the employee does not have enough money to cover all support orders in effect. But withholding monies for child support is not the only requirement that applies to providing for a child, medical support orders are required to be process by payroll as well. And these orders have their own rules and regulations on both the federal and state level. In addition, this webinar will give examples of calculating child support.
Areas Covered in the Webinar:
- How to define child support garnishments
- The federal requirements a payroll department must know for child support
- How state requirements affect child support
- Specific requirements for child support, including deduction limits, deadlines, filing procedures, administrative fees, and penalties/fines for violations
- How to handle terminated employees in regard to child support
- Best practices for communicating with employees and issuing parties
- Which garnishment to take when an employee has current support orders, medical support orders, and arrearages
- Examples of how to calculate the withholding and prioritize the order of distribution when an employee has more than one type of garnishment
- Best practices for processing child support garnishments in the payroll department
- How to go paperless with child support by receiving electronic withholding orders and paying by EFT
- In-depth discussion of the latest OCSE withholding notice and medical support notice
- Processing medical support notices properly
Who will Benefit:
- Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry Level Personnel
- Human Resources Executives/Managers/Administrators
- Accounting Personnel
- Business Owners/Executive Officers/Operations and Departmental Managers
- Lawmakers
- Attorneys/Legal Professionals
- Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues
Level: Basic
Format: Live webcast
Instructional Method: Group: Internet-based
NASBA Field of Study: Accounting
Program Prerequisites: None
Advance Preparation: None
- Introduction
- Our Focus For Today 00:01:17
- 5 Steps for Child Support 00:07:16
- Child Support - Laws And Regulations 00:08:21
- Child Support 00:08:32
- The Laws 00:10:03
- Consumer Credit Protection Act 00:13:42
- Limits on Child Support 00:14:54
- Other General Child Support Requirements or Provisions 00:15:49
- Withholding and Paying Child Support 00:19:45
- Definition of Income 00:26:14
- Disposable Earnings 00:26:47
- Disposable Earnings - Mandatory Deductions 00:27:11
- Disposable Earnings Example Chart 00:27:51
- Allowable Disposable Income 00:28:40
- Child Support Withholding Orders 00:29:50
- But It Will Be 00:30:02
- Income Withholding for Support (IWO) Form 00:32:00
- The IWO Form Includes…. 00:32:37
- IWO Form Continued 00:33:06
- Rejecting a Form 00:33:37
- Child Support Processing Thru Payroll 00:38:02
- Flowchart 00:38:25
- What Laws Do I Follow? 00:44:29
- State/Employer Contact and Program Information Matrix 00:46:10
- Generally Follow The Issuing State For 00:47:39
- Follow The Principal Place Of Employment For 00:48:18
- Priority Of Deduction For Child Support 00:49:19
- What If You Get Two For One Child 00:49:51
- Go Tell It To The Employee 00:53:37
- Pay It Out 00:55:02
- Child Support: Paying by EFT 00:56:04
- EFT Requirement 00:26:29
- What If There Is Not Enough Money For All The Orders? 00:56:50
- Methods 00:57:43
- Child Support Medical Support Notices 00:58:06
- Medical Support 00:58:20
- National Medical Support Notice - Part A 00:58:57
- National Medical Support Notice (NMSN) 00:59:34
- Employer Response 01:00:34
- Sections 1-8 01:00:45
- Employer NMSN Requirements 01:02:21
- NMSN Requirements - Provide Written Notice 01:02:52
- NMSN Requirements - Coverage Not Available 01:03:08
- Child Support Special Situations 01:03:20
- Lump Sum Payment 01:03:28
- Lump Sum Payments 01:03:41
- Lump Sum Payments - Limits 01:05:13
- Lump Sum Payments - Opinion Letter 01:06:39
- To Help With Lump Sum Payment Questions The OCSE Offers A Chart That Gives 01:07:19
- State/Employer Contact And Program Information Matrix - Alaska 01:07:40
- State/Employer Contact And Program Information Matrix - Michigan 01:08:45
- Lump Sum Reporting Process - Employer 01:09:12
- Lump Sum Reporting Process - OCSE Portal 01:10:59
- Child Support Portal - Services Selection 01:11:44
- Child Support Portal - Report Lump Sum 01:12:17
- Child Support Portal - Report Lump Sum - File Uploaded 01:12:21
- Child Support Portal - Report Lump Sum - Confirmation 01:12:42
- Employee Termination 01:13:08
- Terminating Employees 01:13:32
- eTerm 01:14:04
- eTerm Proces 01:14:43
- Child Support Portal - Report Termination - Step 1 of 6 01:15:01
- Child Support Portal - Report Termination - Step 2 of 6 01:15:10
- Child Support Portal - Report Termination - Add Case Example 01:15:15
- Child Support Portal - Report Termination - Step 3 of 6 0115:22:
- Child Support Portal - Report Termination - Step 4 of 6 01:15:28
- Child Support Portal - Report Termination - Step 4 of 6 Cont’d 01:15:30
- Child Support Portal - Report Termination - Step 5 of 6 01:15:33
- Child Support Portal - Report Termination - Review 01:15:34
- States Using Lump Sum Reporting and eTerm 01:17:16
- Medical Support Order 01:1
- Rehired Employees 01:18:02
- Rehired Employees Cont’d 01:19:39
- Record Retention And IWO 01:19:49
- Retention By State Chart 01:22:40
- When To Stop A Child Support Order 01:23:34
- If Your Employee Is Called Up for Active Duty 01:23:59
- Electronic IWO 01:24:53
- E-IWO For Child Support 01:25:36
- E - IWO Options 01:25:47
- PDF Acknowledgement Sample 01:27:25
- Want A Single Acknowledgment Entry Form? 01:27:58
- XLS Acknowledgment Sample 01:28:17
- The Employer Can Also 01:28:24
- How To Enroll 01:28:32
- How To Enroll Cont’d 01:28:46
- Let’s Do Some Examples 01:29:37
- Child Support Calculation Example 01:29:55
- So If We Do The Calculation 01:31:56
- Let’s Add An Arreaage To The Equation 01:32:34
- Here’s How We Fix It 01:33:00
- Multiple Order Calculations 01:34:02
- Same Disposable Income But 01:34:47
- Percentages Made Easy 01:35:43
- Here’s How It Is Done 01:36:14
- Let’s Apply The Percentages 01:36:49
- Don't Forget To Communicate 01:37:12
- Let’s Try One With Arrears Included 01:37:20
- We Can Take All The Current Support But Only Partial On The Arrears 01:37:40
- We Go Back To Percentages 01:37:53
- Calculate The Arrearages 01:38:19
- Forward The Following 01:38:30
- Final Questions 01:39:26
- Presentation Closing 01:53:36
- Allowable Disposable Income 00:28:58
- Bankruptcy 01:23:56
- Child Support 00:01:28, 00:03:01, 00:04:46, 00:08:35, 00:30:56, 00:38:14, 00:55:05, 01:04:35
- Child Support Enforcement Amendments of 1984 00:10:44
- Compensatory Damages 01:06:50
- Consumer Credit Protection Act (CCPA) 00:10:09, 00:14:42, 00:26:19, 00:38:11, 00:48:27, 01:05:27, 01:32:54
- Department of Labor (DOL) 01:05:30
- Disposable Pay 00:13:53, 00:26:47
- Electronic Income Withholding Orders (E-IWO) 01:25:02
- eTerm 01:14:04
- Fair Labor Standards Act (FLSA) 01:21:20
- Family Support Act of 1988 00:12:31
- Form W-4 01:19:41
- Garnishments 00:01:45, 00:13:38, 00:30:09, 00:55:18
- Income Withholding for Support (IWO) 00:06:19, 00:07:15, 00:15:56, 00:30:04, 00:36:26, 00:58:09, 01:20:46, 01:23:43, 01:32:15
- Lump Sum Payment 00:06:26, 00:14:37, 01:03:28, 01:09:21, 01:14:25
- National Medical Support Notice (NMSN) 00:59:34
- Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) 00:04:11, 00:13:25, 00:19:53, 00:6:18
- Punitive Damages 01:06:50
- Severance Pay 01:03:28
- State Disbursement Unit (SDU) 00:23:46
- State Unemployment Insurance (SUI) 00:20:53
- Uniform Interstate Family Support Act (UIFSA) 00:13:13, 00:16:08
- Wage 01:05:24
Allowable Disposable Income: Allowable disposable income is the most you can garnish someone's wages, dependent on their disposable income and the CCPA percentage limit.
Bankruptcy: is a legal proceeding in which a debtor declares their inability to pay back their creditors.
Child Support: Child support is an ongoing, periodic payment made by a parent for the financial benefit of a child following the end of a marriage or other similar relationship.
Child Support Enforcement Amendments of 1984 : This final rule implements the Child Support Enforcement Amendments of 1984, Pub. L. 98-378, which amends title IV-D of the Social Security Act (the Act). The statutory changes implemented by these regulations fall within three basic categories.(1) Availability of Services;(2) Enforcement Techniques; and (3) Program Administration and Financing.
Compensatory Damages: A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. Compensatory damages provide a plaintiff with the monetary amount necessary to replace what was lost, and nothing more.
Consumer Credit Protection Act (CCPA): The Consumer Credit Protection Act (CCPA) is a piece of federal legislation that puts in place consumer protections against lenders. Passed in 1968, the law requires lenders to explain the actual cost of borrowing money in terms the consumer understands.
Department of Labor (DOL): The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S. states also have such departments.
Disposable Pay: “Disposable pay” is the pay remaining after deduction of any amounts required by law to be withheld. The maximum for student loan and all other garnishments is 25% of disposable income.
Electronic Income Withholding Orders (E-IWO): Electronic Income Withholding Orders or E-IWO is an efficient and cost-effective way to electronically exchange income withholding order (IWO) information between state child support agencies and employers.
Fair Labor Standards Act (FLSA): The Fair Labor Standards Act of 1938 29 U.S.C. § 203 is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".
Family Support Act of 1988: The Family Support Act of 1988 was a federal law that amended Title IV of the Social Security Act to revise the Aid to Families with Dependent Children program to emphasize work, child support and family benefits, as well as on withholding the wages of absentee parents.
Form W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.
Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt
Income Withholding for Support (IWO): The IWO is the OMB-approved form used for income withholding in tribal, intrastate, and interstate cases as well as all child support orders that were initially issued in the state on or after January 1, 1994, and all child support orders that were initially issued (or modified) in the state before January 1, 1994 if arrearages occur. This form is the standard format prescribed by the Secretary in accordance with USC 42 §666(b)(6)(A)(ii). The OMB-approved IWO must be issued to employers or other income payers to collect child support.
Lump Sum Payment: Lump sum payment refers to a one-time large payment of money given to an employee, usually instead of a series of payments made over time. Examples are bonuses, commissions, severance, and vacation payouts.
National Medical Support Notice (NMSN): Child support agencies send a National Medical Support Notice (NMSN) to the employer to order health insurance coverage for an employee's child(ren). Employers must honor this notice.
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA): Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), also known as the Welfare Reform Act, was signed into law on August 22, 1996. Its primary goal is to move families off public assistance by helping them become self-sufficient.
Punitive Damages: Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit.
Severance Pay: An amount paid to an employee upon dismissal or discharge from employment. Severance pay is usually given by an employer to its employees who are laid off or terminated for reasons other than firing-for-cause. ... In general, severance pay is up to the employer's discretion and is only legally required under specific circumstances.
State Disbursement Unit (SDU): In the United States, a State Disbursement Unit is a state government agency that collects and disburses child support payments from one parent to the other. States are required to establish as State Disbursement Unit by federal law, specifically Title 45 of the Code of Federal Regulations.
State Unemployment Insurance (SUI): The Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own.
Uniform Credit Analysis Cash Flow (UCA): The Uniform Credit Analysis, or UCA Cash Flow, is designed to help you identify where the business's cash is going and how it is being used.
Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.
eTerm: Electronic Termination (eTerm) allows employers to report employeeterminations online. Registered employers provide information aboutemployee terminations (or that an individual has never worked forthem) either by uploading a file or entering information in the onlineeTerm application.
