Friday, November 14, 2014

New Law Enforces Use of E-IWOs

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Recently enacted Public Law 113-183, the Preventing Sex Trafficking and Strengthening Families Act, contains several provisions affecting child support collection.

One provision includes the requirement that all states adopt use of electronic income withholding orders(e-IWOs) by October 1, 2015. Currently, there are 32 states already using e-IWOs. States must attest to compliance with the e-IWO requirement no later than December 31, 2015. Employers will have the option of using e-IWOs.

The Federal Office of Child Support Enforcement (OCSE) has issued guidance to state child support agencies and others regarding implementing the e-IWO mandate in the form of Action Transmittal AT-14-12. The transmittal explains the benefits of using e-IWOs, such as:

  • Increased processing efficiency
  • Reduced errors that occur through manual processing
  • Reduced cost of postage and processing paper documents
  • Ongoing communication link between child support agencies and employers
Read PayState Update for more information on the E-IWO mandate and stay tuned to Pay News Now for more videos on the latest compliance updates.