Employers Play Key Role in Ensuring Child Support Success

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Employers are essential to the success of the child support program, helping children get the financial support they need from both parents. The Office of Child Support Services (OCSS) reports that in fiscal year 2023, the child support program collected $29.6 billion, with 73% obtained through income withholding from an employee’s paycheck. This significant achievement underscores the value of cooperative relationships between child support agencies and employers.

Understanding your responsibilities as an employer is essential to the child support program's success. Here’s a breakdown of your key obligations and the tools available to help you navigate them.

New Hire Reporting

Under federal law, employers must report newly hired or rehired employees to the State Directory of New Hires within 20 days of their start date. This data is cross-referenced with child support case records to locate parents, establish paternity, establish, and enforce child support orders.

Employer Actions

• Report all new hires or rehires within 20 days.
• Report seven required data elements accurately.
• Understand state laws and requirements for reporting independent contractors.

Income Withholding Orders (IWO)

Employers are required to comply with Income Withholding for Support Orders (IWO) issued by a court or child support agency.

Employer Actions:

• Withhold the specified amount from each paycheck.
• Remit withheld funds to the state disbursement unit (SDU).

Medical Support

In addition to financial support, child support agencies issue National Medical Support Notices (NMSNs)  requiring employers to enroll an employee’s children in health insurance.

Employer Actions:

• Complete and return Part A within 20 business days.  
• Forward Part B to the plan administrator.
• Understand state laws and requirements regarding the definition of reasonable cost and the priority of withholdings.  

Verification of Employment

Child support agencies rely on employers to verify employment status other information to establish and enforce child support orders. Employers must provide accurate, up-to-date employee information and report changes in employment status such as terminations or job transfers.

Employer Actions:

• Provide employment status and other requested information child support agencies.
• Use the Standard Response to Verification of Employment form if the child support agency accepts it.

OCSS Online Tools

To make it easier for employers to comply with child support requirements, OCSS provides a range of online tools and resources:

• Electronic Income Withholding Order (e-IWO): Electronically receive and acknowledge IWOs instead of handling paper forms.
• Electronic National Medical Support Notice (e-NMSN): Electronically receive and respond to NMSNs.
• OCSS Child Support Portal: Report lump sum payments, employee terminations, communicate securely with state child support agencies and update employer contact information.

Resources

The OCSS Employer Services webpage provides a wealth of resources, including process guides, forms, instructions, FAQs to employer questions, and detailed information on state contacts and program requirements across various topics. For more support, including presentations or demonstrations, contact the OCSS Employer Services Team at EmployerServices@acf.hhs.gov.

Jessica Ramsey is the employer services business lead, contractor, division of federal systems, in the Office of Child Support Services within the Administration for Children and Families, U.S. Department of Health and Human Services.