ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina States and Employers: How Can We Improve a Great Partnership?

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Speakers  Corri Flores  Agency Relations Manager - Diverse Products - ADP, Inc.  Charles Smith  Texas IV-D Director, Office of the Attorney General – Child Support Division  Robyn Large  OCSE Employer Services 2

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina States and Employers: How Can We Improve a Great Partnership? Corri Flores - ADP 3

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Agenda  New Hire Reporting  Income Withholding Order  Lump Sum  Partnering 4

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina New Hire Reporting & Employers  Employers are required to report certain information on their newly hired employees to state agencies  Many states have established more stringent reporting requirements  Employers are required to report based on the state in which they are reporting to (unless they are mutli-state reporting)  Penalties may be imposed 5

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina ADP and New Hire Reporting  Provided New Hire Reporting to employers since 1996 as a standard part of payroll processing  Reported an average of over 805,000 newly hired employees a month as of end of FY13  Transmit data weekly to state agencies 6

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina NHR Challenges  Additional required added elements by state makes it more difficult to report  Some state require independent contractor reporting  Most independent contractors are paid via accounts payable process  Communicate with employers to ensure there is a clear understanding of what to report 7

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Federal Income Withholding Order (IWO)  Employers are still receiving orders that are not on the approved form or not directing payments to the SDU  If payment is not directed to the SDU as required by Federal law [section 454B of the Act]  Employer should reject the IWO and return it to the sender, effective immediately  If not on the approved IWO form as required by Federal law (section 466(a)(8) and 466(b)(6)(A)(ii) of the Act)  Employer should reject the document and return it to the sender, effective 05/31/12  There will be a new form for © Copyright 2014 ADP, Inc. Proprietary and Confidential Information. 8

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Challenges to Employers  Employers may be receiving orders from all states  Standardization is key  e-IWO is a best practice  Identification of key data elements are difficult when orders are not consistent  Mailing costs increasing when not directing payments to the SDU 9

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Lump Sum  Bonus and lump sum type payments made to employees can be garnished to collect past-due child support  Many states may have requirements for withholding lump sums  Some states have very specific requirements on timeframes  Requirements vary state by state 10

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Lump Sum Payments  States may have requirements for withholding lump sums  Requirements vary state by state  Lump sum mandates increasing  17 states currently require reporting 11 © Copyright 2014 ADP, Inc. Proprietary and Confidential Information. 11

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Challenges with Lump Sum Withholding  Not standardized across states  Income withholding order is used for a variety of lump sum type withholding  Order does not clearly specify a lump sum  Debt Inquiry process does not allow states to communicate back via the portal  One time deduction makes timing critical  Manual intervention generally needed 12

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Best Practices in Partnering  Communication is the key  Standardization helps employers  Early feedback or participating on employer/agency committee’s  Webinars, symposiums, websites, articles 13

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Corri Flores (909)

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina States and Employers: How Can We Improve a Great Partnership? Charles Smith-TEXAS 15

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina A secret to our success is the partnership between employers and the Child Support Division. We see employers as our most important partner. 16

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Texas’ Employer Initiative Increase employer collections Increase employer compliance Improve employer customer service 17

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Employer Task Force  Representatives from public and private entities  Focus on improving child support enforcement  Feedback  Education  Outreach  Quarterly meetings 18

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Employer Repository  “Lock down” and “clean up”  Employer outreach  Employer maintenance and verification 19

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Employer Website 20

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina 21

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Employer Data Integrity New Hire Verification of Employment Income Withholding Medical Support Payment Submission Termination 22

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Employer Outreach ► Employer Call Center ► Publications ► Exhibits ► Presentations ► Trainings 23

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Texas-sized Highlights Our partnership increases:  Collections  Collections per FTE  Collections per case  Our rank compared to other states 24

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Child Support Collections 25

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Collected Per FTE 26

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Charles Smith (512)

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina States and Employers: How Can We Improve a Great Partnership? Robyn Large- OCSE Employer Services 28

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Income Withholding for Support (IWO)  Provides authority to withhold  Issued by state agency, court, tribe or other tribunal  IWO is a notice if sent by an attorney/private entity o Requires sender to provide copy of underlying child support order which contains the authorization to withhold 29

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina IWO - Draft Changes Suggested  Add standard headers on pages 2-4 to identify the specific NCP and employer  Add lines in the areas for states to insert text  Remittance Information:  states to provide state-specific information for withholding from non-employees/independent contractors and directed employers to the IW matrix to find withholding limits, fees, etc. for employee's principal place of employment  Clarified when to follow state or tribal law in "Withholding Limits" 30

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina IWO Instructions IWOs issued on or after 05/31/11 (that is, new IWOs)  If the IWO is not directed to the SDU as required by federal law [section 454B of the Act] then the employer should reject the IWO and return it to the sender, effective immediately  If the employer receives a document to withhold income that is not issued on the OMB-approved IWO form then the employer must reject the document and return it to the sender, effective 05/31/12  For more information, see Action Transmittal 11-05:  withholding- for-support-iwo-form 31

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina OCSE website 32

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Lump Sums  Bonus and lump sum payments are considered employee income and may be garnished to collect child support  If a payment is “earnings” as defined by the Consumer Credit Protection Act (CCPA), the CCPA maximum withholding limits of 50% - 65% or lower state limits apply  Lump sum payments can include severance, leave payouts, insurance settlements, retirement incentives, commissions, stock options, lottery winnings, awards, and payments resulting from verdicts 33

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Lump Sums  Some states require an employer to report a bonus or lump sum payment before it is paid  Other requirements vary among states, including how long the state has to notify the employer of an amount to withhold before paying the employee  For state-specific requirements, see the link below: sum-contacts-and-program-information 34

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Lump Sums  States may use the Income Withholding for Support form (IWO), a lien/levy, or another state-specific form or process to notify an employer to withhold from a lump-sum payment  Employers must send all income withholding to the State Disbursement Unit 35

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina OCSE Website 36

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina State Lump Sum Contacts and Program Information Matrix 37

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Lump Sum Resources  For state-specific requirements, see /state-lump-sum-contacts-and-program- information /state-lump-sum-contacts-and-program- information 38

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Court Outreach  Provide information to courts and attorneys about requirements for the following:  Using the OMB-approved IWO for all child support income withholding orders  Sending all child support payments to the state disbursement unit (SDU)  Assist courts and attorneys implement IWOs by offering training and information on completing the IWO form 39

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina ES Team – Court Outreach Child Support and IWO Outreach  Association of Family and Conciliation Court (AFCC)  The Commentator (FL Family Law magazine)  National Council of Juvenile and Family Courts  Florida AFCC state conference  Kansas State Bar Association annual conference  National Center for State Courts (NCSC)  American Association of Matrimonial Lawyers (AFCC-AAML)  15 th Judicial Circuit in Florida 40

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina IWO and SDU Bench Cards  IWO and SDU bench cards emphasize use of the OMB-approved form and sending all employer-withheld payments to the SDU - come-withholding-for-support-and-the-state- disbursement-unit come-withholding-for-support-and-the-state- disbursement-unit 41

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina OCSE Website -Court 42

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Robyn Large (803)

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina 44

ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Thank You! 45