Income Withholding Transfer (aka Wage Garnishment)
As an employer, you play a very important role in providing the financial security for millions of children by working cooperatively with the CSEA. New Hire Reporting (NHR) is the process in which employers report information on newly hired employees to a designated state agency shortly after a person is hired. These reports are matched against state and national child support records to find parties on active child support cases. Below are some useful tips regarding the Income Withholding Order/Notice for Support.
When should the garnishment be put into effect?
The withholding should be put into effect as soon as you receive it but no later than the first pay period occurring fourteen (14) days after the date the notice was received. The sooner you begin withholding, the less likely your employee will fall behind on his/her support obligation.
1099 Employees, Independent Contractors, Subcontractors
Independent Contractors, Subcontractors, 1099 Employees ARE subject to withholding and therefore you are required to withhold from the obligor’s income. The Ohio Revised Code defines income as the following: Any form of monetary payment, including personal earnings; workers’ compensation payments; unemployment compensation benefits to the extent permitted by, and in accordance with, Sections 3121.07 and 4141.284 of the Revised Code, and federal law governing the Ohio Department of Job and Family Services (ODJFS); pensions; annuities; allowances; private or governmental retirement benefits; disability or sick pay; insurance proceeds; lottery prize awards; federal, state, or local government benefits to the extent that the benefits can be withheld or deducted under the law governing the benefits; any form of trust fund or endowment; lump-sum payments; and any other payment in money.
Termination of Withholding
Do not terminate the withholding until you receive official notification to stop. Official notification is not provided by an employee. Official notification is provided by the CSEA directly. If you have any questions regarding this, please contact the CSEA directly.
Payments should be remitted within seven (7) days of the pay date
It just shouldn’t take any longer than that. If it is taking longer than that you may want to consider electronic payments.
Mandatory Electronic Payments fifty (50) + Employees
If you are an employer with fifty (50) or more employees, it is mandatory that you combine all of the payments into one payment and submit the payment via electronic transfer.
Multiple Employees with Child Support Cases?
You do not need to send separate checks for each employee, just send one payment for all of your employees. You just need to identify each employee’s portion of the check with the payment. You also don’t need to separate fees in another check.
Lump Sum Payments
Advise the CSEA of upcoming lump sum payments at MEDINACSEA-LUMPSUM@jfs.ohio.
Consumer Protection Act (employee doesn’t make enough)
Follow the Consumer Credit Protection Act if the employee does not make enough to cover the full obligation. It is not the employer’s responsibility to contact the CSEA if the employee has an issue with the obligation amount and not being able to meet it. The employee must contact the agency to discuss this issue, not the employer.
Employee has Multiple Cases
Deduct for all cases. If an employee has multiple cases, pro-rate the payments if they do not earn enough to cover each case.
Example of Proration
Disposable income is $180.00 and there is not enough to pay the full $227.00 obligation. Figure out the percentage of the total ordered amount that each order represents and then multiply that percentage times the allowable disposable income.
|ORDER||AMOUNT||AMOUNT/TOTAL||AMT PAID ON ORDER IF
DISPOSABLE INC IS $180.00
|A||$90.00||39.65% ($90 / $227)||$71.37 ($180.00 x 39.65%)|
|B||$75.00||33.04% ($75 / $227)||$59.47 ($180.00 x 33.04%)|
|C||$62.00||27.31% ($62 / $227)||$49.16 ($180.00 x 27.31%)|
Termination of Employment or Interruption of Payments
Advise the CSEA when an employee’s pay is interrupted (vacation, sick time, injured, etc.) or terminated to avoid inquiring calls from the CSEA.
Discrimination due to Income Withholding Order
You cannot terminate an employee based on receiving an income withholding order from a CSEA in Ohio within twelve (12) months of hiring (per Ohio Revised Code §§ 2716.041, 2716.05, 3121.18, 3123.20, 3123.99).
The Employer’s Obligations and Asking us for Help
Realize your obligation and ask for help. The notice of income withholding takes priority over any other legal process under the law of Ohio against the same income. Always contact the CSEA if you have any questions, issues, or concerns.
National Medical Support Notice (NMSN)
What is the National Medical Support Notice (NMSN)?
This notice is telling you that your employee is ordered to provide medical, dental, vision, RX, etc. (all of these or some of these). You’ll see that there are two parts to the NMSN, Part A and Part B.
- Part A is to be returned to the agency within twenty (20) days when the medical obligor is unable to carry medical coverage through you, the employer. There are five (5) reasons why he/she is unable to provide medical coverage for his/her dependents that you can simply ‘X’ off and mail back to us. Box six (6) is if the medical insurance will be available in the future (please provide the future effective date), and box seven (7) is if Part B needs to be mailed to the plan administrator (Union—Please mail to Union directly, not back to CSEA).
- Part B is to be returned to the agency within forty (40) days and is to be completed when the obligor is already carrying medical insurance or the employer has enrolled the dependent(s) in medical coverage (see FAQ for more information).
Do I need to notify my Employee of This?
No, you don’t. The employee is mailed the National Medical Support Enforcement Activity (NMSEA) notice advising that the NMSN has been sent to you when you are mailed the NMSN.
The Employee and Child(ren) are already Enrolled
Best case scenario has just occurred and all you have to do is complete Part B, page 2, AND the last two pages of the packet which request the effective dates of coverage for the employee and children as well as the policy details and cost information. *Regarding the effective date of coverage, we need the original effective date, not the current enrollment effective date.
The Employee is Enrolled but the Child(ren) is not
Enroll the child(ren) in the option the employee has chosen but in the +1 or + children plan. Then complete Part B, page 2, AND the last two pages of the packet which request the effective dates of coverage for the employee and children as well as the policy details and cost information. *Regarding the effective date of coverage, we need the original effective date, not the current enrollment effective date.
Employee is Not Enrolled, Medical is Available, One Option for Coverage
If there is only one option, you simply enroll the employee and dependent(s) in that option, complete Part B, page 2, AND the last two pages of the packet which request the effective dates of coverage for the employee and children as well as the policy details and cost information. *Regarding the effective date of coverage, we need the original effective date, not the current enrollment effective date.
Employee is Not Enrolled, Medical is Available, Multiple Options for Coverage
The employer’s responsibility is to send the available options to us and we will forward only the affordable plans to the custodial parent for review. The custodial parent will have five days to respond to us. If no response we will leave the choice up to the employer (in our experience the employer usually chooses the “default” or cheapest plan). The employer and child(ren) are then enrolled, you then complete Part B, page 2, AND the last two pages of the packet which request the effective dates of coverage for the employee and children as well as the policy details and cost information. *Regarding the effective date of coverage, we need the original effective date, not the current enrollment effective date.
Medical Insurance is provided through a Union
‘X’ box number seven (7) on page 3 of the NMSN (Employer Response) advising us that you are mailing Part B to the union that provides medical coverage. Mail Part B to the union that provides medical coverage. The union will then mail us Part B upon completion.
The Employee Advises his/her Spouse Carries Medical Coverage
Advise the employee to call us directly as we need proof of coverage. We will send you a Termination of NMSN once we receive verification from your employee. Do not terminate coverage until you receive paperwork from us advising to do so.
The employee states the child is already enrolled in Medicaid
The employer’s responsibilities under NMSN are not affected by the child’s enrollment in Medicaid or CareSource. Please continue with enrollment of child(ren) as specified in NMSN.
The employee says the child doesn’t reside in the insurer’s service area
The employer’s responsibilities under the NMSN are the same regardless of the child’s residence. The employee will need to contact the CSEA or the court to have the order changed.
FREQUENTLY ASKED QUESTIONS
How do I, the employer, know if coverage is affordable?
Add the child support obligation plus the monthly insurance premium paid by the employee. If the total is higher than the percentage they are allowed to withhold under the Consumer Credit Protection Act then it’s not affordable and you are not to enroll the child(ren) in medical coverage.
Are you asking for the employer’s monthly cost for coverage or the employee’s?
Anytime the CSEA requests the cost for coverage regarding medical insurance, we are always asking for the employee’s out of pocket cost. It is not necessary for you to provide your cost for coverage as you, the employer, are not the medical insurance obligor.
Why do I get a termination of NMSN and then a day later receive a NMSN for the same parties?
This usually happens when a new case number has been assigned to the case. Everything else will be the same except for the case number and the order number. When we are closing one case the NMSN termination notice needs to go out for that case/order number. We will then issue a NMSN under the new case/order number.