01.08.15 |
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Understanding the New Law on Electronic
Income Withholding Orders

As a business owner, did you ever think a piece of legislation related to child care could impact your company?

In September 2014, President Obama signed a law to identify, document and determine appropriate services for crossword-postchildren under the care, placement or supervision of state agencies who may be at risk or are the victim of sex trafficking. The legislation also includes provisions related to adoption incentives and international child support recovery1.

Under the new law, all 50 states will be required to send electronic income withholding orders (also known as e-IWOs) for child support collection and must complete the transition by October 1, 2015. Employers have the option of receiving e-IWOs, which may ultimately turn into a requirement once all states adopt the process2.  There are currently 33 states using e-IWOs and Nevada, Maryland and Minnesota are implementing the program right now3.

The e-IWO platform will help improve the coordination and exchange of data between employers and state agencies, which could expedite the collection process and offer families faster receipt of their support payments. It should also save time and resources for the parties involved by transforming a manual, paper-driven process into an automated function.

Employers interested in developing the capability to receive e-IWOs may obtain more information on the Office of Child Support Enforcement website which provides guidance on adopting and implementing an e-IWO program4.

 

 

 

 

1H.R. 4980 – Preventing Sex Trafficking and Strengthening Families Act

2New Law Enforces Use of E-IWOs (refers to H.R. 4980 – Title III, Sec. 306)

3States Using e-IWO – Program Innovation Maps

4Office of Child Support Enforcement

 


One comment on “Understanding the New Law on Electronic
Income Withholding Orders”

  1. Sue Seadschlag says:

    From a person who has administered the office of a temporary staffing firm, this could be both a good thing or a bad thing. For one, the companies sending these IWO’s, would have less postage expense, but the paper expense of printing them would be on the receiving end, unless they have paperless programming on their system. The receiving side still has to enter the IWO on each employee’s payroll and answer any questions. If the answers go via email, that would save postage on the receiving end. But, one of the most difficult issues is the sending of child support payments. Many states have a cumbersome set-up on their websites for sending payments. All states now have a central location for receiving payments. Phone numbers and contacts in this area are not always adequate. To get to the “right” person to help set these up is a long process. If this can be corrected, it would make the procedures more efficient.

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