1. 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?

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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 2014 8 © Copyright 2014 ADP, Inc. Proprietary and Confidential Information. 8

9. 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

10. 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

11. 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

12. 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

13. 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

14. ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Corri Flores corrinne.flores@adp.com (909)-971-5858 14

15. 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

16. 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

17. 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

18. 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

19. 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

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

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

22. 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

23. 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

24. 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

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

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

27. ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Charles Smith charles.smith@texasattorneygeneral.gov (512) 460-6873 27

28. 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

29. 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

30. 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

31. 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:  http://www.acf.hhs.gov/programs/css/resource/revised-income- withholding- for-support-iwo-form 31

32. ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina http://www.acf.hhs.gov/programs/css/employers/income-withholding OCSE website 32

33. 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

34. 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: http://www.acf.hhs.gov/programs/css/resource/state-lump- sum-contacts-and-program-information 34

35. 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

36. ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina OCSE Website http://www.acf.hhs.gov/programs/css/resource/state-lump-sum-contacts-and-program-information 36

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

38. ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Lump Sum Resources  For state-specific requirements, see http://www.acf.hhs.gov/programs/css/resource /state-lump-sum-contacts-and-program- information http://www.acf.hhs.gov/programs/css/resource /state-lump-sum-contacts-and-program- information 38

39. 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

40. 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

41. 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 - http://www.acf.hhs.gov/programs/css/resource/in come-withholding-for-support-and-the-state- disbursement-unit http://www.acf.hhs.gov/programs/css/resource/in come-withholding-for-support-and-the-state- disbursement-unit 41

42. ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina OCSE Website -Court http://www.acf.hhs.gov/programs/css/courts 42

43. ERICSA 51 st Annual Training Conference & Exposition ▪ May 18 – 22 ▪ Sheraton Greensboro ▪ Greensboro, North Carolina Robyn Large Robyn.large@acf.hhs.gov (803)-980-8783 43

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

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