 LeAnn Miller Attorney II Kansas City Metro Region Dept. of SRS, Child Support Enforcement Kansas City, Kansas Office  Monica Remillard Deputy Director Kansas Child Support Enforcement Central Office, Topeka

What is an Income Withholding Order? An Income Withholding Order (IWO) is a court ordered deduction of a specific amount from a parent’s income for payment of child support.

 Withholding for child support must be paid first, before all other garnishments.

When employer receives IWO Always check to see the purpose of the IWO document * Original * Amended * Termination

Income Withholding for Support  Original income withholding order/notice for support (IWO)  Amended IWO  One-time order/notice – lump sum payment  Termination of IWODate:  Child Support Enforcement (CSE) Agency  Court  Attorney  Private

What is the employer’s responsibility? Employer deducts the specific amount each pay period and sends it to the Payment Center. The Payment Center forwards the payment to the custodial party.

Out of State Income Withholding Orders Employers must honor IWO’s for child support from any state. IWO’s are valid throughout the country.

Multiple IWO’s Rules to Follow 1. Current child support is always to be paid first. 2. If employees disposable income is not able to meet the full obligation, employer withholds the maximum amount allowed under (Federal Consumer Protection Guidelines). 3. Distribute the withheld amount evenly among the cases with current support owed.

Federal Credit Consumer Protection Act (FCCPA) Maximum Percentage Allowed The FCCPA limits wage withholding to 50% of disposable income in the case of an employee who is supporting a 2 nd family in his or her household and 60% in the case of an employee without a 2 nd family. The limits are increased to 55% and 65% respectively if the employee owes arrears that are 12 weeks or more past due.

Disposable Income Disposable income is the amount of earnings remaining after subtracting certain mandatory deductions from an employee’s gross pay. Mandatory deductions - federal, state, and local taxes - unemployment insurance - workers compensation insurance - state employee retirement deductions

Disposable Income Disposable income is not necessarily the same as net pay. An employee may have deductions taken from his pay that are not mandatory, such as: union dues credit union car loan payment other voluntary allotment

Employee has a disposable income of $1,500/mo Employee is supporting a 2nd family (50%) Arrears are not more than 12 weeks past due Two child support orders: WY 00DM200current $400 arrears $50 WY 05DM200current $300 arrears $50 Question: Will you, the employer, be able to send in the full amount? Answer: No, the maximum you can withhold is (50%) of $1,500 or $750. Scenario 1

Employee has a disposable income of $1,500/mo Employee is supporting a 2nd family Arrears are more than 12 weeks past due (55%) Two child support orders: WY 00DM200current $400 arrears $50 WY 05DM200current $0 arrears $300 Question:Will you, the employer, be able to send in the full amount? Answer: Yes, we can take up to $825 (55%). Pay current first, then arrears.

KSA (i) If any payor violates the provisions of this act, the court may enter a judgment against the payor for the total amount which should have been withheld and paid.

KSA (j) In addition to any judgment authorized by subsection (i), a payor shall be subject to a civil penalty not exceeding $500 and other equitable relief as the court considers proper if the payor: 1. Discharges, refuses to employ, or takes disciplinary action against an employee subject to an IWO because of such withholding and the obligations or additional obligations which it imposes upon the payor 2. Fails to withhold support from income or to pay such amounts in the manner required.

You the employer get an order to withhold child support from the state of Kansas, and an order to withhold child support from the state of Missouri. Do the IWO’s: have the same case number request the same amounts list the same children

Employers can combine the child support payments from several employees into one check. Employer must: Make sure all payments are being sent to same receiving agency (KPC). The employer itemizes the amount withheld from each employee, the date each amount was withheld, and a required identifier such as the case number.

 KSA 23-4,108 T he payor may withhold and retain to defray the payor's costs a cost recovery fee of $5 for each pay period for which income is withheld or $10 for each month for which income is withheld, whichever is less. Such cost recovery fee shall be in addition to the amount withheld as support.

The notice is a federally mandated standardized form (NMSN), which all states that have child support enforcement programs are required to use. Part AEmployer Withholding Notice Part BMedical Support Notice to Plan Administrator

PART A – Employer Withholding Notice Informs the employer of the type of coverage required under the court order. SAMPLE The order requires the children to be enrolled in: [X] any health coverage's available; or [ ] only the following coverage(s): ___Medical; ___Dental; ___Vision; ___Prescription drug; ___Mental Health; ___Other(specify):_________________________________.

PART A – Employer Withholding Notice * page 2, include a response form *The employer must review and act on the NMSN within 20 business days. Unlike an IWO a NMSN does have an answer that has to be returned.

 1. The employee has never been employed by employer.  2. We do not provide health care coverage to our employees.  3. The employee is among a class of employees that are not eligible for family health coverage (part-time)  4. Health care coverage is not available because employee is no longer employed by the employer:  5. State or Federal withholding limitations and/or prioritization prevent the withholding from the employee's income of the amount required to obtain coverage under the terms of the plan.

PART B - Medical Support Notice to Plan Administrator If company can provide coverage, the employer forwards part B to the insurance plan administrator. The plan administrator then has 40 days from the date of the notice to complete Part B and return it to the issuing authority.

Question: What if the employee is not eligible for health insurance until a 90 day probationary period is up? Answer: Employer is required to enroll the dependents in health insurance as soon as the employee is eligible for coverage. If there is a probationary period for new employees, the employer must forward Part B of the notice to plan administrator, so they can check (box 4) and provide eligible date. Once probationary period is over employer must ensure dependents enrolled and an updated Part B is submitted.

 The employee has been ordered by the court to provide health coverage.  The employer is required by law to honor the Notice and must enroll the employee and his or her eligible family member even if the employee does not want to enroll.

 The employer does not need copies of any social security cards to enroll the children for health insurance purposes. All the employer needs is the (NMSN) notice, all necessary information is listed.

 Confidential Information Information on the notice is confidential and employers are prohibited from giving the custodial parents address or any other personal data to the employee.

Many plans state or suggest that the child has to live a minimum percentage of the time with the insured parent, but Federal Law & Kansas law prohibit that. (KSA )(c).

 Until termination notice received.  The court does not have statutory authority to order medical support beyond the child’s emancipation date.  If employee is still working for employer it is always a good idea to ask the employer if they want to voluntarily continue coverage before terminating medical withholding order.

 Too early to tell all the effects Health Care Reform will have  US Dept of Health & Humans Services website  Kansas Health Institute

KPCpay ◦ Simple, secure online remittance tool for employers ◦ Has a no cost “e-check” option ◦ Cheaper than mailing checks ◦ Can set up and save employee roster ◦ Warehouse transactions for up to six months ◦ ◦ Limited number of employers are testing & feedback is positive ◦ CAUTION: be sure it’s the official KPC website (LOOK FOR STATE SEAL) there is a look alike