Wages : information newsletter to employers

4 Pages·1997·0.22 MB·English

by  Montana. Child Support Enforcement Division

346.0172 WAGES M^^NTANA
P30W
1997 DepartmentofPublicHealth&HunanServices
Information newsletter to employers from the Department ofPublic Health and Human Services
Child Support Enforcement Division (CSED)
MontanaSlateUbrary
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3 0864 1004 9557 4
Dear Montana Employer: Employers Vital to Effective
Thank you for yourcontinued efforts to help collectchild Child Support Enforcement
supportthrough wage withholding. Yourrole in the child
supportenforcementsystemisessentialtoensurechildren Employers play a vital role in child support enforcement
receivefinancialsupportfromtheirparents. Lastyear,the andmakeavaluablecontribution tothelivesofMontana's
Child Support Enforcement Division and our employer children. In 1996, employerswere directlyresponsiblefor
partners collected a record $33.5 million in child support. collecting over $12 million, thirty-six percent ofthe total
Child Support Enforcement Division (CSED) collections
Child supportplays akey role in welfare reform. Regular which were more than $33.5 million. The cooperation
child support payments can help families become between employers and CSED encourages parental
financiallyself-sufficient. Aswelfarebenefits nowhavea responsibility, reduces the burden on Montana taxpayers
maximum time limit of five years, child support will through reduced public assistance and Medicaidcosts and
becomeevenmorecrucialtohelpfamiliesstayoffwelfare. helps familiesprovide fortheirchildren.
In the 1997 Legislative Session, the department will be
This newsletter contains information to inform you about
introducing some major legislation mandated by the
employer responsibilities, explains recent and proposed
.federal welfare reform actto strengthen the national child
changes in child support laws. Communication is a two-
Fsupportenforcementsystem. Thislegislation will include waystreetandwecertainlyappreciateyourfeedback. Feel
employer reporting of new hires and direct income
free todirectanycomments orconcerns you have to Child
withholding by other states' child support enforcement SupportEnforcementDivision,Attn: WAGESNewsletter,
agencies. Onceenacted,thesenewlawswillhelpchildren
3075 North Montana Avenue, P.O. Box 202943, Helena,
receive support earlier and faster than they would
Montana 59620-2943.
otherwise.
In recognition of the important role Montana employers
serve in the child support system, the Child Support
Enforcement Division has added a new staff position
whose main job is to assist Montana employers. JuUe
Bailey is our "employer liaison". Julie has been with the
divisionfor 10years,hasdirectexperienceinworkingwith
theprivate sector, andlooksforward toworking with you.
Please feel free tocall her, through ourCustomer Service
Unit, ifyouhaveaparticularquestionorconcernaboutthe
employer's role in the child support enforcement system.
Our Customer Service Unit has been directed to transfer
employercallsdirectly toJulie when employers statethey
are calling about "employer relations issues". Ofcourse,
you may continue to call our toll-free Customer Service
Unit at 1-800-346-5437 ifyou have questions about your
responsibilities in aparticularcase.
•s
incerely,
Mary Ann Wellbank
Winter 1997
Administrator
New Hire Reporting payments so they can be properly credited. The
information record identifies the employee, the Social
Montana CSED is proposing New Hire Reporting Security Number, child support account number, date of
legislation to the 1997 Legislature. Starting October 1. collection, and amount ofthe payment.
1997,thefedert^lgovernmentis mandatingall states,who
donothaveNewHireReporting(NHR),tooperateaState MontanaCSEDencouragesemployers to use this form of
Directory of New Hires (SDNH). To conform to the payment especially if you have more than one employee
federal welfare reform act, states must enact laws and have a computerized system.BCDSMED uses a specific
requiring employers to reportnew hires orrehiring ofan software program provided by Technologies of
employee StaoaiiiaalBr to whom the employer Helena, Montana, which is used by several states in
anticipates paying income within 20 days ofthe date of transmitting child support payments to Montana.
hire. Ifthe new law is passed, employers must furnish a Lockheed IMS of Denver, Colorado and Netstar
Corporation ofSelmer, Tennessee also provide computer
report that contains the employee name, address and
Social Security Number (SSN) and the employer name, software free ofcharge to Montanaemployers. Lockheed
address, and federal employer identification number to IMSprovidessoftwareandademonstrationdisketteofthe
the SDNH. CSED will keep employers informed about employerEFT.
NHR WAGES
in the Newsletter.
If you would like to use the EFT/EDI method of
transmitting payments or would like more information,
contact Maggie Baertsch, Child Support Enforcement
ElectronicFundsTransfers (EFT)
Division, Financial Services Unit, P.O. Box 202943,
ElectronicDataInterchange (EDI) Helena,Montana, 59620-2943, [phone].
Child Support Enforcement Division (CSED) is pleased Changes Made by the 1995 Legislature
to announce our EFT/EDI capabilities for employers.
Electronic Funds Transfer(EFT) is any transferoffunds Two years ago, the 1995 Montana Legislature made
that is initiated through a terminal, telephone, computer, changes to the child support enforcement laws, some of,
or magnetic tape for the purpose of instructing or which impact employers. First, House Bill 55 added'
authorizing, by means ofa structuredformat, a financial provisions to the courMtCadAministered income withholding
institution to debit orcredit an account. Electronic Data procedures found at § 40-5-301 et seq. making it
consistentwith the administrative withholding provisions
Interchange(EDI)istheelectronicmovementofbusiness found in MCA § 40-5-401 et seq. These new provisions
data with funds through the banking system. EFT/EDI apply to income withholding orders issued by a Montana
provides companies an efficient way of transferring District Court, just as the existing provisions found at
MCA
employees' child support payments directly from § 40-5-401 et seq. apply to income withholding
employer's payrolls to the state child support agency. orders issuedby theCSED. Featuresofthebill applicable
to employers include:
The system allows employers to make payments
electronically instead of issuing paper checks which in a. Upon the receipt of an income withholding order
turn, reduces processing costs for employers and child from a District Court, an employer must deduct the
supportagenciesresponsibleforthepayments. Thereare ordered amount beginning the first pay period that
several advantages in using EFT/EDI technology for occursafter 14dayshaveexpiredfromtheserviceof
transmitting child support wage withholding payments theorder. Afterdeduction,employersmustforward
thewithheldpaymenttothecourtwithin 1 working
that include:
days.
• Eliminating the preparation and transmission of b. If an employer receives more than one income
checks by employers; withholding orderfrom the same District Court, the
• Eliminatingmanualpostinganddepositofchecks;and employer may combine all deducted amounts into
• Reducing payment disbursement time to those one monthly payment and send it to the District
Court. Theemployer,however,mustindicatewhich
receivingchild support payments. portion ofthe total payment is attributable to which
employee.
Traditional EFT involves a limited amount of data ~
originating bank account number, identifying name, and c. If an employer receives more than one income
destinationbank account number. Childsupportrequires withholding order for one employee, the employer
additional EFT data and EDI information to accompany must comply with the orders in the sequence in
which theywereservedon theemployer. However.
income withholding orders issued by the Montana Customer Service Unit
CSED have priority over all other withholding
orders. The amount deducted from the employee's
wages or salary must not exceed the limits set in TheCSEDoftheDepartmentofPublicHealthandHuman
MCA § 40-5-309. Services is proud to announce the one yearanniversary of
ourcentralized CustomerService Unit (CSU).
d. The employer must notify the Clerk of the District
Court when the employee's employment is Ateamofspecially trainedCustomerServiceRepresenta-
terminatedandmustprovidethelast-knownaddress tives,whoareprofessionalswithexpertiseinchildsupport
oftheemployeeand,ifknown,thenameandaddress
ofthe new employer. and division operations, respond to telephone calls
between8:00A.M. and5:00P.M.MondaythroughFriday
e. An employer may not discharge, discipline, or except for State ofMontanaholidays. These trained staff
refusetohireanemployeebecausetheemployeehas members can access a CSED case and answer most
a child support obligation or is the subject of an questions. Allcaseinformationis maintainedonacentral
MCA
incomewithholdingorder. Under §40-5-313, computer system, and the CSU is able to update any
an employer who violates the provisions of this
informationyouprovideaswellasrespondtoyourinquiry.
section may be fined not more than $100. Duetostrictconfidentialityrules,theCSUislimitedinthe
f. An employer who refuses to honor an income information that can be released. However, the CSU can
withholding order or fails to reinstate an income provide general information about child support policies
withholding orderon a newly rehired employee, is andprocedures.
liable tothecustodialparentofthe supportorderfor
the total amount that the employer should have The CSED installed additional telephone lines to allow
deducted andremitted. easier access to our services. To call the CSU dial (406)
TheaboverequirementsbecameeffectiveMarch29, 1995. 442-7278fromthelocalHelenacallingareaorout-of-state
and l-8(X)-346-5437 from other Montana locations. To
Second, Senate Bill 29, MCA § 40-5-416, provides relief expedite your call, you should provide the CSU with the
mfor those employers with weekly or biweekly payroll obligorcasenumberandSocialSecurityNumberifyouare
ystems. Specifically, ifasupportordersubjecttoincome callingaboutaspecificcase.Thecasenumberislocatedon
ithholdingisexpressedintermsofamonthlyobligation, the upper right hand comer of most CSED documents.
an employer may annualize the order and withhold on a
PleaserefertoyourOrdertoWithholdIncomeorOrderto
weekly or biweekly basis, corresponding to the
employee's regular pay period. If withholding is Enroll for the CSED case number.
annuahzed and deducted in equal amounts, the amount
withheld each pay period must be sufficient to pay all The CSED is pleased toofferthis service. We know how
installments due in a 12-month period under the order to important it is for an employer to get immediate, concise
withhold. Thischange becameeffective October 1, 1995. andaccurateanswerstoquestionsabouttheirresponsibih-
ties. CSU answered 157,182totalcallsfrom 1/96to 12/96
EmployersareencouragedtocontacttheCustomerService of which 5,036 were from employers. In the future, we
Unitconcerningquestionsaboutthesechangestothechild
supportenforcementlaws. hope you will provide us with suggestions for
improvement and tell us how we are doing by writing to:
Repeals
Department ofPublic Health and Human Services
On December 1, 1989 the Child Support Enforcement Child Support Enforcement Division
Division mailed all employers in Montana a booklet to Attn: WAGES Newsletter
explain the policies andproceduresofthe division. Itwas
titled "Kids, They're worth every penny". Employers 3075 N. Montana Avenue, Suite 112
were informed (on page 3) oftheir responsibility to have P.O. Box 202943
MT
new employees hired after January 1, 1990, complete a Helena 59620-2943
support obligation disclosure form regarding any child
support obligation they may have. This form was to be TheCSED looks forwardtocontinuingtogiveyouthetop
retainedon recordforthreeyearsoroneMyeCaArafterthe date quality service you deserve.
employment is terminated. This law, § 40-5-525,
wasrepealedin 1991. Employersare nolongerrequiredto
ask new employees for this information or have the form
Tilled out.
Child Support Enforcement Acronyms
Local Child Support Offices
Region 8 - Interstate Region CSED
P.O. Box 202943 Child Support Enforcement Division
Helena MT 59620-2943 csu Customer Service Unit
[phone] - OutofState/Helena area CP Cu.stodial parent or parent who is owed child'
[phone] support
DOC
Date ofCollection
Region 2 - Great Falls EFT
Southside Plaza. Suite D Electronic Funds Transfer
219 5th Street South EDI Electronic Data Interchange
MT MCA
Great Falls 59405 MontanaCodes Annotated
[phone] - Out ofState/Helenaarea NHR New Hire Reporting
[phone] NCP
Non-custodialparentorparentuhooweschild
support
Region 3 - Billings
2121 Rosebud Drive, Suite E Obligee Parent who is owed child support
Billings MT 59102 Obligor Parent who owes child support
[phone] - OutofState/Helena area PARID Participant Identification (located on all
[phone]
Orders to Withhold Income and Orders to
Region4- Butte Modify/Terminate Income Withholding)
17 West Galena SDNH State Directory ofNew Hires
Butte MT 59102 SSN Social Security Number
[phone] - Out ofState/Helena area UIFSA Uniform Interstate Family Support Act
[phone] WAGES
WithholdingandGuidanceforEnforcementof
Support
Region 5 - Missoula
1610 South 3rd West, Suite 201
Missoula MT 59801 16,000 copies of this public document were published at an
estimated cost of 44c per copy, for a total cost of $7040.00,
[phone] - OutofState/Helena area which includes $1376.00 for printing and $5664.00 for
[phone] distribution.
DEPARTMENT OF PUBLIC HEALTH AND HUMAN SERVICES
CHILD SUPPORT ENFORCEMENT DIVISION BULK RATE
3075 NORTH MONTANA AVENUE U.S. POSTAGE
P.O. BOX 202943 PAID
HELENA, MT
HELENA, MT 59620-2943
PERMIT NO.89