Wisconsin Department of Children and Families

Protecting Children, Strengthening Families, Building Communities

 

 

Employer - Frequently Asked Questions

Income Withholding Questions

Should I show separate amounts for an employee with more than one income withholding?

No, just indicate the total amount withheld for each employee. Do not list an employee twice even if they have more than one obligation or more than one withholding order/notice.

What should I do if I receive an Income Withholding Notice from a private agency?

To ensure your employees receive full credit for the child support you withhold, send all withholdings to the Wisconsin Support Collections Trust Funds (or another state's official disbursement unit when appropriate). Do not send child support payments to private collection agencies.

What if the parent doesn't make enough money to pay all the support owed?

You should withhold only up to the limits specified in the federal Consumer Credit Protection Act (CCPA) listed on the income withholding notice for that employee. The employee is still responsible for any difference between the CCPA limits and the court ordered amount and may voluntarily agree to have the full amount withheld.

What if my employee says they do not owe child support?

Your employee has the right to contest the withholding by notifying the child support agency that sent the notice, but you must obey the income withholding order unless directed differently by the court.

Do I ever withhold a percentage of income for child support?

No.

Electronic Income Withholding Questions

What is e-IWO?

e-IWO, or electronic income withholding is a system developed and maintained by the Federal Office of Child Support Enforcement by which employers can receive income withholding orders electronically rather than paper documents in the mail. The electronic delivery is not email.

When will Wisconsin start using e-IWO?

e-IWO will be available as of September 23, 2015.

How do I sign up?

For more information and to sign up, contact the Federal Office of Child Support Enforcement e-IWO page.

Do I have to use e-IWO?

No. States are required to provide the option of e-IWO by OCtober 1, 2015, but employers are not required to use it.

Does e-IWO cost anything?

There is no cost to sign up or use e-IWO.

Do I have to do programming to my system to use e-IWO?

There is a programming and non-programming option available. See OCSE for more information.

Will I receive income withholding notices for R&D fees through e-IWO?

No. Wisconsin does not send income withholding for R&D fees through e-IWO.

Will National Medical Support Notices be sent via e-IWO?

No. The NMSN will not be sent via e-IWO.

Is e-IWO the same as Electronic Funds Transfer?

No, those are two separate programs.

I'm already using e-IWO with another state. Do I have to register again in Wisconsin?

No, you only have to register once and will receive e-IWO's from any state that starts using e-IWO.

Is e-IWO for all types of garnishments?

No. e-IWO is only for child, family and spousal support. It is not for R&D fees, tax, or other creditor garnishments.

Why should I use e-IWO?

e-IWO saves on processing time, since ther eis no mail to open, route, and scan. It allows employers to respond electronically and gets money to families faster. Employers can communicate information such as employee terminations and potential lump sums using e-IWO. This cuts down on paper processing and mail time as well.

Who should I contact for more information about e-IWO?

Bill Stuart, (518) 399-9241 or Email

Coupons & Lists Questions

Do I have to use your employer withholding list/coupon, or can I make my own?

You may make your own employer withholding list/coupon if you include all the required information.

Where can I find the employer's case info/PIN and my employer ID Number?

The employee's Case Identifier PIN and your Employer KIDS ID are on the Income Withholding Notice you received. Your Employer ID Number is also on the withholding list/coupon. You may call a child support agency to obtain either number.

R&D Fee Questions

How often will I get an R&D fee withholding form?

If you have an employee who owes R&D fees, you will receive an income withholding notice for R&D fees up to three times per year (spring, summer, fall).

Why do some employers have an R&D fee debt and other's don't?

Some support payers have made this payment on their own. Also, some court-ordered debts are not charged an R&D fee.

Can I recoup my cost of this withholding?

Yes you can. Since this is a separate mailing, actual costs up to $3 is allowed per withholding.

What is the deadline to withhold the R&D fee?

You are required by law to withhold unpaid fees in the next payroll or as soon thereafter as practicable. There must be strong justification for any delay beyond the next payroll.

If I cannot withhold the full amount of the R&D fee from this payroll, should I send in the rest with the next payroll?

No. Submit only the amount of the R&D fee per seasonal withholding that is allowed under the CCPA limits and withholding priorities.

Who do I call with questions about withholding R&D fees?

Please call the R&D Information line at (414) 615-2585.

National Medical Support Notice (NMSN) Questions

Do I have to complete the NMSN for every employee who pays child support?

No. You must complete the NMSN only if you receive one for a particular employee. You will be sent these notices for new employees with an order for medical support and for current employees with new or modified medical support orders. You should not complete the NMSN for current employees with income withholding unless you receive a new notice for a particular employee.

Why would a parent who receives child support be ordered to provide health health insurance for his/her child?

The court may order either parent to provide health insurance for his or her child.

What pages of the NMSN must I return to the agency?

We suggest that you make a copy of PART A of the NMSN, keep the original for your files, and return the copy the the issuing agency with the response page completed.

What should I do if the employee's income varies causing the withholding amount to exceed the CCPA limits in some pay periods?

When an employee's income fluctuates, you may use an average monthly income to determine whether health insurance is available at a reasonable cost and if the total amount withheld is allowable under the Consumer Credit Protection Act. If using an average income and the health care premiums are above the limits and priorities, the employee's income is not sufficient for the deduction of health insurance premiums. You should complete item number 5 on the Employer Response form and send the form to the issuing agency. Employers are not expected to enroll/disenroll the children on a month-to-month basis due to the employee's fluctuating income.

What happens with temporary layoffs and seasonal employees?

If health insurance remains available to employees who are on temporary layoff or who are seasonal workers, and the employee has the wages available for the withholding of premium, and the withholding complies with all the other terms of the NMSN, you should continue withholding the health insurance premium.

If insurance is not available or if there is no income from which to withhold premiums, you should notify the issuing agency. This notification may be a copy of any notice you are required to provide under the continuation coverage provisions of ERISA or HIPAA.

Who is responsible for notifying the employee about the withholding for health insurance premiums?

The plan administrator is required to notify the employee.

What do I need to do if the insurance provider changes or family insurance is not available?

If there is a change in the insurance provider, you should forward PART B to the new Plan Administrator and notify the issuing agency.

If the insurance is no longer available to all your employees in the same classification, you should notify the issuing agency.

What do I need to do if the employee quits or is laid off for a long term?

You should notify the issuing agency. This notification may be a copy of any notice you are required to provide under the continuation of coverage provisions of ERISA or HIPAA.

If premiums are not received for the insurance, do I still provide coverage?

State law Wis. Stats. 767.513(4)(c) states that "After the child has coverage under the employer's health benefit plan, and as long as the parent is eligible for family coverage under the employer's health benefit plan, continue to provide coverage for the child unless the employer receives satisfactory written evidence that the court order is no longer in effect or that the child has coverage of health care expenses under another health insurance policy or health benefit plan that provides comparable coverage of health care expenses."

State law Wis. Stats. 632.897(10)(am)(3) states, "After the child is covered under the group policy or individual policy, and as long as the individual is eligible for family coverage under the policy, continue to provide coverage for the child unless the insurer receives satisfactory written evidence that the court order is no longer in effect or that the child has coverage under another group policy or individual policy that provides comparable health care coverage.

What is satisfactory written evidence that my employee is NOT required to provide health insurance?

Satisfactory written evidence means you are notified in one of the following ways:

  1. You receive, for the employee, a new Order/Notice to Withhold Income for Child Support with the Health Insurance Box not filled in. By not checking this box the child support agency is indicating that the employee is not court ordered to provide health insurance coverage for his/her dependent children.
  2. You receive a letter from the child support agency stating that the identified employee's medical support order has been officially ended and/or the employee is no longer obligated to provide health insurance coverage through his/her employer.
  3. A parent provides written documentation from an insurance carrier that the children have comparable health insurance coverage and that coverage is currently in effect. You or the plan administrator must notify the Issuing Agency prior to ending coverage for the child.

What if my employee contests the premium withholding?

The employee may contest the withholding under the Notice based on a mistake of fact (such as mistaken identity). To contest withholding, the employee should contact the Issuing Agency at the address and telephone number listed on the Notice. With respect to plans subject to the Employee Retirement Income Security Act, it is the view of the US Department of Labor that Federal Courts have jurisdiction if the employee challenges a determination that the Notice constitutes as a Qualified Medical Child Support Order.

Should your employee contest the withholding under the Notice, you must proceed to comply with the employer responsibilities in the Notice until notified by the Issuing Agency to discontinue withholding.

Does the plan administrator have to send separate notification of coverage to the custodial parent and the child(ren)?

If the custodial parent and the children have the same address listed on the NMSN, the plan administrator may send a single notice to that address. In most cases, if the custodial parent and the children have the same address, the children's address will no be listed on the NMSN.

In some cases, the other parent's and children's address will be the same address as the Issuing Agency. In these cases, coverage information should be sent to the Agency address. In other cases, a name and address of a representative of the children will be listed. Coverage information should be sent to that address.