The most recent Child Support Report from the federal Office of Child Support Enforcement (OCSE) focused on employers and payroll professionals. It highlighted their contributions along with recent developments that will assist them in collecting and remitting child support.
Improvements to Aid Employers
OCSE Commissioner Vicki Turetsky described the following improvements the agency has made to help employers:
- e-IWO – Federal legislation enacted in 2014 requires states to use electronic income withholding. More than 50 states and territories participate in electronic income withholding orders (e-IWO), and they issue withholding orders to more than 9,000 unique Federal Employer Identification Numbers (FEIN).
- Reporting lump sum payments – Employers can now report lump sum payments through the federal portal to increase child support collections and help employers comply with state laws.
- e-Term – Employers can report employee terminations electronically through OCSE's portal.
- VOE – Following a change in federal legislation, OCSE issued guidance (DCL-16-01) to employers and to state child support agencies that a verification of employment (VOE) sought by a child support agency does not trigger the reporting obligations of the Fair Credit Reporting Act.
- New hire reporting pilot – This pilot tested new approaches to improve new hire reporting rates among employers. Last year, OCSE mailed 382 letters to employers that it identified as potentially noncompliant with new hire reporting requirements. In response, nearly 21% of the employers began to report their new hires and 30% contacted their state child support agency to inquire about new hire reporting.
Employers and payroll professionals have been integral in the continued success of OSCE initiatives. Read PayState Update to learn more.