Lauren Johnson, Policy Coordinator Emily Gregg, Policy Supervisor Robert Duck, Fiscal Manager

1. Lauren Johnson, Policy Coordinator Emily Gregg, Policy Supervisor Robert Duck, Fiscal Manager

2. Types of Child Support Cases Four Different Types of Child Support Cases Cases where the custodial parent is receiving public assistance from the state Cases being established, enforced and/or modified by the Tennessee Child Support Program Both ran by DHS Where child is being cared for by someone other than a parent, like a relative or the foster care system child support maintained privately, such as following a divorce

3. The Title IV-D Child Support Program A national program authorized and defined by federal statute A federal, state, tribal, and local partnership to assist families with self-sufficiency A program administered in Tennessee by the Department of Human Services

4. IV-D Child Support in Tennessee What We Do Child support locates the non-custodial parent for the purposes of…

5. Figures From Across our Great Nation • 14.4 million custodial parents • 82% Women • 79% Are 30 years old or older • 68% White • 25% Black • 21% Hispanic • 15.8 million child support cases • $33.6 billion collected in support according to the FY2013 Office of Child Support Enforcement • $32 billion collected in support (74% [$22.2 billion] collected through Income Withholding Orders) THANK YOU!!

6. Did You Know.. August is Child Support Awareness Month

9. Tennessee Child Support Performance Measures • Paternity Establishment Percentage (PEP) • Percentage of Cases with Orders • Collection Rate for Current Support • Percentage of IV-D Cases with Collection on Arrears • Cost-Effectiveness

10. Tennessee IV-D Child Support Performance Trends 5.90% 3.65%

11. P Tennessee Child Support Payments • The Tennessee State Distribution Unit processes over $1.6 million in child support payments every day • Child Support Collections Last year (SFY) $611 million • $590 millionwent directly into the hands of families

12. Child Support Judicial District Map

13. Jud Over 20% of all cases with court orders are in Memphis

14. How Employers Help Our Efforts: Employer Responsibilities • Report new hires to the State within 20 days through https://www.tnnewhire.com/ • Enroll children in health care coverage when ordered (withholding limits apply) • Income Withholding Order (IWOs) • Know them, accept them, love them: http://www.acf.hhs.gov/sites/default/files/ocse/omb_0970_0154.pdf • Only the clerk of the court & DHS child support/contractors have authority to issue IWOs (T.C.A. 36-5-501 et seq.) • Federal law requires the use of the IWO form in all child support cases • Remit payment within seven (7) days of the date the employee is paid • Notify child support services regarding lump sum payments • Report the termination of an employee to child support services

15. New Hire Reporting: Why Its Important • State matches the new hire data to child support obligations and issues Income Withholding Orders to employers • Prompt reporting helps to detect and prevent public assistance, food stamps and unemployment and workers’ compensation fraud by matches to these databases. • Other states can also conduct matches through the National Directory of New Hires to prevent public assistance fraud

16. New Hire Reporting

17. New Hire Reporting: Helpful Hints • Report new hires with the same FEIN (Federal Tax ID Number) that you use to report each New Hire's Quarterly Wage information. • Including a contact person & phone number is optional but extremely helpful. This information will be used in case the new hire's information is missing or illegible. • Hand written report are are often difficult to read & can increase data entry errors. Please use black ink & legible handwriting • New Hire encourages you to type the information and use size 12 font when possible!

18. New Hire Reporting: Where to Report • Internet: www.tnnewhire.com; register your company and report on-line or via a file upload • Mail: (for diskettes, magnetic tapes and cartridges, W-4's, lists and State Reporting form) • Tennessee New Hire ReportingPO Box 17367Nashville, TN 37217 • Fax: (for W-4's, lists, and State Reporting form) 1-877-505-4761 Questions/Problems: Contact MAXIMUS New Hire at (615) 726-5200 or online

19. Income Withholding Is Challenging! • Knowing which state laws, rules, regulations to apply is difficult for employers • Employers know that they can be liable if garnishment is processed incorrectly • Some states require separate payments and methods of payment for fees and/or non-IV-D payments, causing additional administrative expenses for employers. • In some states not all payments are directed to the SDU.

20. Income Withholding Order Send With Payment

21. Income Withholding Order Continued.. • Page 2 of IWO • Signature Required • Who can issue IWOs in Tennessee? • Who cannot? • Use ‘Return to Sender’ box if form is incorrect in any way

22. Changes to IWO • Increased font size for improved readability • State may change the font size if they wish • Result of the changes is a 4-page document instead of 3 pages • Added language in REMITTANCE INFORMATION section about finding withholding limits for non-employees in Supplemental Information • Next steps • IWO form and instructions will be approved by OMB • OCSE will send an Action Transmittal to states • OCSE will inform employers and the state courts

24. Where we are going • Making IWO compliance easier— • NewTennessee Child Support Employer Line • (800) 446-0814 or by email at Childsupport.Empdmaint.DHS@tn.gov • Can assist with questions about proration, IWO issues, etc. • http://www.tn.gov/humanserv/cs/cs_main.html • Electronic Funds Transfer (EFT) Payments • Employer Outreach efforts • Tennessee employers • Payroll companies • Groups/Associations • Online employer support

25. Making Your Life Easier: e-IWO • States, tribes, territories send income withholding orders (IWOs) electronically & employers accept & process them electronically • Paperless! • Most states are already using e-IWO • 400+ companies/organizations on e-IWO • Three (3) different options for e-IWO depending on your company needs • Companies on • e-IWO… • ADP Payroll Solutions • Walmart • JC Penny • FedEx • And MANY, MANY MORE!

26. E-IWO States Map

27. e-IWO Process • 1.) OCSE pulls e-IWOs from the states • E-IWO States • 2.) OCSE separates the • e-IWOs and groups them by employers • 3.) OCSE sends e-IWOs (or Acknowledgment PDFs or XLS) to employer securely via the internet • 6.) Acknowledged • e-IWOs are then sent back to each state • 5.) OCSE then groups the acknowledged • e-IWOs by state • 4.) Employer (accepts or rejects) e-IWOs then sends acknowledgements to OCSE 15

28. Want more information? Sign-up to attend a free webinar on e-IWO!

29. Bonus and Lump Sum Payments Bonus and lump sum payments made to employees are considered income and may be garnished to collect past-due child support. Examples include: • Severance • Vacation payouts • Insurance settlements • Retirement incentives • Commissions • Stock Options • Lottery Winnings • Awards • Payments as a result of verdicts

30. Debt Inquiry Service (DIS) • Provides employers ability to report bonus, lump sum or other type of payout online using web application • Allows employers to upload a file or enter information on DIS application about employees who are eligible for lump sum type of payment • OCSE compares info to its debtor file (non-custodial parents who owe past-due support) then returns matched to appropriate state child support agency • Through our partnership with employers, the Debt Inquiry Service makes a significant difference in the lives of millions of children.

31. States Participating in DIS *As of July 16, 2013

32. How Employers Can Participate in DIS • Complete registration form • Can be found at: http://www.acf.hhs.gov/sites/default/files/ocse/debt_inquiry_profile_form.pdf • Or we can email you the form • Send to: Cindy Holdren Employer Services Team Federal Office of Child Support Enforcement cynthia.holdren@acf.hhs.gov Phone: (240) 676-2808 Fax: (757) 257-4439 • Ms. Holdren can also answer any questions you may have

33. Tennessee State Disbursement Unit • Located in Nashville, Tennessee • Operated by our private contractor, Systems and Methods Inc. (SMI) • Currently average 375,500 payments processed per month • Total collections for the Tennessee Child Support were $611,865,498 for Federal Fiscal Year 2013 Customer service line for child support custodial and non-custodial parents: (800) 838-6911 or (615) 253-4394 Email contacts: tnccu@smimail.netor Childsupport.Fiscalservices.DHS@tn.gov

34. Payment Options • Check or money order mailed to the following address: Tennessee State Disbursement Unit PO Box 305200 Nashville, Tennessee 37229 • Electronic Funds Transfer (EFT) via Automated Clearing House (ACH) • Web pay through the child support website • Credit card payments for registered users We encourage all our partners to make the switch to EFT or Web pay!

35. Benefits of EFT and Web Pay • Increased accuracy – fewer misapplied or misidentified payments, fewer complaints and phone calls • Faster – families receive payments sooner • Increased reliability – scheduled payments are not lost or delayed • Reduced costs – no postage, flat fee or no fee • Reduced paperwork – no paper checks, envelopes, or turnaround documents needed • Reduced opportunity for theft and fraud • Saves the State and taxpayers money

36. Web Pay VS EFT Web Pay EFT EFT/EDI (ACH Credit) is the process of sending child support payments electronically through the ACH network. Offers alternative to preparing checks & remittance documents Your bank will draft your account for the appropriate amount and transmit the payment to the Centralized Collections Unit • Web Pay (or ACH Debit) is where an employer authorizes the State Disbursement Unit to draft their bank account for IWO payments • We will then draft your bank account on the date you scheduled the payment • Similar to bill pay through your bank

37. How to Use Web Pay • Can be accessed from our website: https://tn.smartchildsupport.com/ • Select the ACH/Debit option and follow instructions • Good option for smaller employers • Capable of both one time payments and recurring payments • Similar to paying bills online with your bank

38. Overview: How to Enroll in EFT • Tennessee Child Support can accept EFT payments through the Automated Clearing House banking network using NACHA CCD+ or CTX format • Visit our website at https://tn.smartchildsupport.com • Four easy steps to implementing EFT/EDI for child support withholdings:

39. 1. Register for an Account • Key at least the first three letters of the employer and click Search • Choose the appropriate employer name • If the appropriate employer is not listed, click Previous and key different information in for search criteria • If the employer is not on our child support system (TCSES),click on Create Employer Record

40. 2. Reconciliation • If uploading employee information for EFT/ EDI (ACH credit), select Upload Reconciliation Spreadsheet • If uploading employee information for ACH debit, click Schedule New Payment from the Select an Option page

41. 3. Coordinate with Your Financial Institution • If reconciling information for ACH debit, click Continueto provide bank account information. • If reconciling information for EFT/ EDI, the Reconcile Employee Information page is displayed with the client’s bank account information . • The employer needs to work with their payroll company or data processing department and their bank to generate and transmit a file that includes the withholdings from their employees’ pay along with posting information. *Note: If the employer does not have access to Microsoft Excel, they can manually enter employee information. 4. Transmit Payment! • Financial Institution makes payment

42. Live Chat Available Online

43. EFT & Web Pay: User Friendly • Once the account is created & banking information put in, you can: • Schedule a New Payment • Cancel a Scheduled Payment • Edit Bank Account Info • View Online Payment History • Choose payment frequency and start date • Update Contact Info

44. Best Practices • When sending paper checks, only submit identifying information in one place • We must process payments within two (2) business days per Federal law, therefore, we cannot hold payments • Always try to send payments according to the IWO • Please do not reverse EFT payments or stop payment on checks without first contacting us • Problems: Call us as soon as possible We will work with you to find a solution