Wages : information newsletter to employers

6 Pages·1998·0.28 MB·English

by  Montana. Child Support Enforcement Division

346.0172 WAGES
M^^NTANA
(^ P30W
1998
DepartmeniofPublicHeahh&HumanServices
Information newsletter to employers from the Department ofPublic Health and Human Services
Child Support Enforcement Division (CSED)
Dear Montana Employer: Receipt of Foreign Income
Weatthe ChildSupportEnforcement Divisionstrongly Withholding Orders
value our relationship with Montana employers. We
want to provide you with the most current information Montanaemployershaveseenanincreaseinthenumber
as to yourrights and responsibilities as employers with ofincomewithholdingorwagegarnishmentordersthey
regard to child support laws. We hope the information receive from other states' courts or child support
contained in this newsletter is helpful to you. enforcementagencies(hereafterreferredtoas"foreign").
As you may be aware, Congress enacted the Personal Although issuanceofincomewithholdingorderstoout-
ResponsibilityandWorkOpportunityReconciliationAct of-state employers has always been an available child
(PRWORA) in August, 1996. This edition of our support enforcement tool when the court or agency has
WAGES newsletter, which is being sent to all Montana jurisdiction over the employer, the adoption of the
employers, explains some of the laws the Montana Uniform Interstate Family Support Act (UIFSA), with
Legislature enacted to comply with PRWORA. One its Direct Withholding Provision, has resulted in a
law allows other state child support agencies to send nationwide increase in this practice.
withholding orders directly to Montana employers; UIFSA is a uniform act that all states are required to
another law requires employers to report new hires adopt by January 1, 1998 to comply with the federal
within 20 days; and a third shortens the time frames for welfare reform bill. One provision ofthat act allows
employerwithholding ofchild support payments. With
either the state child support agency or a court to issue
theexception ofnewhire reporting, many ofthese laws an income withholding order directly to a foreign state
will not impactMontanaemployersunlesstheemployer employer The goal of direct income withholding is
^has received an Order to Withhold payments for child
efficiency and speed ofcollection. The direct income
support.
withholding provision is effective in Montana on
You may wonder why employers play such a crucial October 1, 1997.
role in child support enforcement. The answer is that
government cannot do thejob alone. Over the years, It is also important to note that an income withholding
national studies have identified new hire reporting and order from the Montana Department ofPublic Health
and Human Services (DPHHS), Child Support
incomewithholdingascornerstonesofaneffectivechild
support enforcement program. The new hire reporting Enforcement Division (CSED) takes priority over any
program will provide information to enable the CSED other income withholding order (including an order
issued by a private entity or another state for the
to locate alleged fathers for paternity establishment
purposes when children are bom out ofwedlock, and collectionofchildsupport)perMontanaCodeAnnotated
will help locate both fathers and mothers who owe a (MCA) §40-5-423. The federal welfarereformbill also
duty of support to their children. Once paternity is requires the federal Department ofHealth and Human
determined, a child support order can be issued and, if Services to adopt a form for the collection of child
theparentowingsupportremainsemployed, supportcan supportthroughincomewithholdingwhichallstatechild
be collected through employer withholding. Regular support agencies will be required to use for interstate
support through employer withholding helps move cases. However, you may still receive income
families offwelfare and helps them maintain financial withholdingorders fromotherstates' courtsoragencies
self-sufficiency. Parentswhoarerequiredtopaysupport which are not required to use the form.
through withholding are not necessarily delinquent in Ifan employer receives a foreign income withholding
their responsibility, but withholding ensures greater order for an employee or payee, the employer must
consistency for children and often prevents provide a copy of the order to the employee/payee.
delinquencies from ever occurring. Employers or payors can also contact the CSED to
Last fiscal yearended June 30, 1997, the CSED andour determinewhethertheforeignincomewithholdingorder
employer-partnerscollectednearly$40milliononbehalf was issued by theappropriate authority. Employers are
of Montana children. We'd like to extend our requiredto withholdthe fundsas directed inthe income
MCA
^wholehearted appreciation to you- as a Montana withholding order per §40-5-157 and forward
employer- for your contribution to this important thosemoniesasdirected. The 1997MontanaLegislature
"mission. THANK YOU! alsogaveMontanaemployerstheoptiontosend foreign
income withholding money collected to the Montana
Sincerely, CSED to process and pass on to the other state. If an
employerelectsto sendthe foreign incomewithholding
money collected to the Montana CSED forprocessing,
Mary Ann Wellbank, Administrator
the following procedures should be followed:
)
MontanaStateUbrary
mil millnil 11111111111 III
3 0864 1004 9556 6
Faxorsendacopyoftheforeignincomewithholding any liability to the employee that may result from the
ordertoCSED immediately sothat a"passthrough" disclosure. If an employer fails to disclose this
casecan be-estabhshed. (Montana DPHHS, CSED, information, the employer may be subject to sanctions.
3075 North Montana Avenue, P.O. Box 202943, Employers must also promptly notify the CSED ofan'
Helena, MT 59620-2943, FAX [phone]). employee'sterminationorseparation from employment
List full name ofemployee/payee. Social Security and provide the employee's last known address, and
number, issuing state's case number, complete name and address ofthe employee's new employer or
address ofwhere the order directs payments are to other source ofincome, ifknown.
be sent, name and phone number of other state's Employers who have been served with an order to
contact person. withhold must retain the order on file so that if the
Attachacopyoftheforeignincomewithholdingorder employee returns to work in the future, the employer
tothe first check mailed to CSED underthis process. can begin income withholding at once.
You may combine the amounts withheld on foreign
orders with other Montana CSED withholding IV-D Child Support Enforcement
payments. If you do so, please identify which Agencies and Private Collection Agencies
amount goes to the other state foreign order and
which amount goes to the Montana CSED order. With thepassageofSenate Bill 374, Chapter552, Laws
of 1997, Montana employers will receive more foreign
Income Withholding Law Changes and incomewithholdingordersfromotherstatesandprivate
Duties of a Payor collectionagenciescollectingchildsupport. Employers
questioning whetherthe foreign (other states' courts or
EiTectiveJuly 1, 1997,anemployerorpayorwhohasbeen child supportenforcementagency) incomewithholding
servedwithaChildSupportEnforcementDivision(CSED) order is legitimate can contact the Montana CSED for
order to withhold is required to begin the income confirmation, the employercan also contact the agency
withholding no later than the first pay period that occurs sending the order to withhold, to ask ifthe agency is a
aftertheserviceoftheorder. Employersmustalsocontinue IV-D agency or a private collection agency. "IV-D"
regularwithholdingeverypaydayuntilreceiptofanOrder refers to provisions ofTitle IV-D ofthe Social Security
toModify/TerminatetromtheCSED. Employersorpayors Actandtheregulationspromulgatedundertheact. Childj
arealsorequiredtosendall incomewithholdingpayments support agencies work under Title IV-D of the Social
within seven (7) working days afterthe date the income Security Act, 42 USC 651 et seq.
iswithheld fromtheemployee'schecktotheCSED. This
Custodialparentshavetheoptionofcontractingwithprivate
includes all income withholding orders received before
child support collection agencies to enforce their child
tAhnenoltaawtecdh(aMngCeAd)o§n40J-u5l-y4211,. 1997, per Montana Code support orders. These collectiMonCAagencies do not work
undertheTitle IV-Dumbrella. §40-5-423 provides
If you have received more than one order to withhold that an income withholding order issued by the Montana
for an employee, you must comply with the orders in CSED (IV-D agency) takes priority overany:
the sequence in which they were served upon you.
Additionally, you must honor all withholding orders to 1 wageorincomedeductionorderunderanyotherstate
law and any income-withholding order issued in
the extent that the total amount withheld from the
another state and sent to a payor in this state;
employee's wages or salary does not exceed the limits
set in MCA §40-5-416. Montana income withholding 2) voluntary or involuntary assignment ofwages;
orders take priority over foreign income withholding 3) other voluntary deductions from the employee's
income;
orders. Incomewithholdingorwagegarnishmentorders
employers receive from other states' courts or child 4) levies, writs ofexecution, or garnishments ofthe
employee's income; and
support enforcement agencies are hereafter referred to
as "foreign". 5) any other claims by creditors.
When requested in writing, MCA §40-5-443 requires Therefore, an income withholding order issued by the
employers to provide the CSED or any other state child MontanaCSEDtakespriority overanyotherorderissued
support agency, the following employee information if by a Montana court, other state's court or IV-D (child
known: last known residential address; Social Security support agency), or a private collection agency from
number; dates of employment or union membership; Montana or another state, even ifthat order is also for
amounts of wages, salaries, commissions, contract the collection ofchild support.
proceeds, and other earnings or amounts paid; whether If you have any questions about a foreign income^
health insurance coverage is or was available through withholding order, please call the DPHHS, CSED
the payor or union; and names, telephone numbers, and CustomerService Unit at(406)442-7278 from the local
addresses ofcurrent and former employers, payors and Helena calling area or out-of-state and 1-800-346-5437
unions. Employers who disclose information to the from all other Montana locations.
CSED or other child support agency are exempt from
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2
New Hire Reporting Law information to detect and prevent erroneous and
fraudulent benefit payments. In addition, Montana's
J^he federal governmenthas mandatedall states operate public assistance and Medicaid programs will conduct
State Directory of New Hires (SDNH). Effective cross matches to determine eligibility, continued
"October 997, Montana'sNewHireReporting(NHR)
1, 1 WAGES eligibility, or fraud.
law goes into effect. Enclosed with the
Newsletter is a NHR brochure with responses to NNOHTRE: An employer who provides information to the
frequently asked questions about new hire reporting, Program is exempt from any liability to the
reportingoptions,andcriticaltimeframes. Alsoincluded employee that may result from the disclosure.
is the format forelectronic reporting ofnew hires and a
preprintedNHRformtomakeemployerreportingeasier. Wiiat is "Date OfCollection" for Child
Employers who use the NHR form will also help save Support Purposes?
the state ofMontana money by using the form. Please
note: this form is not required to be used by Under federal regulation, the Montana Department of
employers but is encouraged. The NHR form can be Public Health and Human Services, Child Support
faxed or mailed to the Montana NHR Program and is a Enforcement Division (CSED) is requiredtorecordthe
correctDateOfCollection(s)(DOC)withheld forchild
scanable fonn.
NHR support. We are asking employers to tell the CSED the
Required information: actual date the employee's child support payment was
Employee's name withheld from the employee's wages. In most cases,
DOC
Date ofhire the will bethe dateyou paidyouremployee. The
Social Security number correct date is very important because it may have an
Residential and mailing addresses effect on the amount ofmoney a family receives. The
CSED
Employer's name correct date also lets the determine if the
Address collectionisforthepreviousmonthorthecurrentmonth.
Federal Employer Identification Number (FEIN) Reporting the correct collection date can eliminate
CSED calling you for this information. Employers
Montana is working on offering employers a variety of areencouragedtoplaceonlyonedateontheinformation
reportingmethods, someofwhich are: 1-800 numberto beingsenttoCSEDandbesureto labelthisastheDOC.
Report new hires; 1-800 facsimile; Electronic Data Please clearly mark the DOC for proper payment
NHR
Interchange (EDI); preprinted scanable Montana
processing
fonn; magnetic tape media; 1st class mailing; copy ofa .
completedW-4 form or; any otherpaperform submitted IMPORTANT: When sending in your withholding
by an employer. The majority of the information you payments, be sure to include:
willbesubmittingis alreadybeingcollectedwhenanew A. Name of employee (if common name, please
employee completes a W-4 form. include middle initial);
Employers are required to report all new hires or B. Social Security number and PAR ID number
rehirings within 20 days ofthe date ofhire orrehire. If of the employee on the Order to Withhold
you provide health or medical insurance coverage for Income;
an employee and the coverage may be extended to the C. Date of collection (the date the money is taken
employee's children, you may provide that information from the employee's check); and
as part ofthe NHR. Employers may also include the D. Amount withheld from the employee's check.
employee's date ofbirth.
Ifyou withhold payments for several employees, you
Reports transmitted electronically or magnetically may can write one check forthetotal amount. Thiswill save
bemadebytwo monthlytransmissions, not lessthan 1 you the expense of writing one check for each
or more than 16 days apart. An employer who has employee's child support withholding. Please include
employees in two or more states and who transmits with the payment a list containing all ofthe information
NHRs electronically or magnetically may comply with shownabove(A, B, C,D). Enclosed is arevised income
this section by designating one of the states in which withholdingform(IWFORM997.FRM)thatcanbeused
there is an employee and transmitting the report ofall when sendingpayments formultipleorsingleemployee
newhirestothatstate. Amultistateemployerwhoelects reporting. Pleasediscardold incomewithholdingforms
toreporttoonly one state needsto givewrittennoticeto (IWFORM/9/96). Make the check payable to the Child
the Secretary ofthe federal Department of Health and Support EnforcementDivision,WageWithholdingUnit,
Human Services ofthe stateto whichthe employer will RO. Box 8001, Helena, MT 59604-8001. Ifyou have
|ransmit new hire reports. questions, please call our Customer Service Unit at 1-
NHR can decrease the tax burden needed to fund state 800-346-5437 or [phone] (Helena or out-of-
programs and benefits all state residents. Montana state). Allincomewithholdingpaymentsareduetothe
Employment Security and Workers' Compensation Montana CSED within seven (7) working days after
programs will have access to Montana's NHR the DOC.
Child Support Enforcement Acronym
Local Child Support Offices
CSED Child Suppoil Enforcement Division j
RReOg.ioBnox8 2-0I2nt9e4r3state Region csu Customer Service Unit |
DOC
Helena MT 59620-2943 Date ofCollection
[phone] - Out ofState/Helena area DPHHS Department of Public Health and Human
[phone] Services
FEIN Federal Employer Identification Number
Region 2 - Great Falls MCA
D Montana CodeAnnotated
Southside Plaza, Suite
219 5th Street South NHR New Hire Reporting
Great Falls MT 59405 PAR ID ParticipantIdentification(locatedonallOrders
[phone] - Out ofState/Helenaarea to Withhold Income and Orders to Modify/
[phone] Terminate Income Withholding)
Region 3 - Billings SDNH State Directory ofNew Hires
2121 Rosebud Drive, Suite E SSN Social Security Number
Billings MT 59102 UIFSA Uniform Interstate Family SupportAct
[phone] - Out ofState/Helena area use United States Code
[phone] WAGES Withholding and Guidance for Enforcement
Region 4 - Butte ofSupport
17 West Galena
Butte MT 59102 TheMontanaDepartmentofPublicHealthandHumanServices,Child
[phone] - Out ofState/Helenaarea Support Enforcement Division, attempts to provide reasonable
[phone] accommodations for any known disabilit>' that may interfere with a
person participating in any service, program or activity of the
Region 5 - Missoula department. Alternative accessible formats ofthis document will be
1610South3rd West, Suite 201 provided upon request. Formore information, call [phone] or
Missoula MT 59801 TDD(406)442-7243.
[phone] - Out ofState/Helena area
[phone] 40,000copiesofthispublicdocumentwerepublishedatanestimated
cost of 11c per copy, for a total cost of $4,400,00. which includes
$4,400.00forprinting and $.00fordistribution.
NTANA
DeparlmenlofPublic Health & Human Services
CHILD SUPPORT ENFORCEMENT DIVISION
3075 NORTH MONTANAAVENUE
PO BOX 202943
HELENA, MT 59620-2943
http://www.dphhs.mt.gov