OCSE Provides Guidance on Reporting Terminated Employees Who Owe Child Support

August 07, 2017

On July 19, 2017, the Office of Child Support Enforcement (OCSE) provided a document on its website that explains how employers and federal agencies may report a termination of an employee with a child support order.

Online Reporting

Employers are required to report the termination of an employee with a child support income withholding order (IWO) as soon as possible to the child support agency, court, or attorney who issued the IWO. Terminations may be reported directly to the applicable state agency (or agencies), or by using electronic termination (eTerm) on the OCSE Child Support Portal. Registration is required to use the eTerm system. Visit the OCSE web page for information and links to begin the registration process.

Alternatives to Online Reporting

Employee terminations may also be reported by fax or mail to the state child support agency. Some states also accept information by telephone or on the state child support website. The OCSE website has links to the state Child Support Enforcement websites, for details on how to report terminations and new hires.

Termination Reporting May Be Necessary Even If the Employee Was Only Briefly Employed

In its guidance, the OCSE notes that employers must report a termination even if the employee left employment during the first pay period, if all of the following apply: (1) an employer-employee relationship existed; (2) the employee completed a W-4 form; (3) the employee was reported on a new hire report; and (4) the employer received an IWO for the employee.

Rehires

The OCSE also notes that if an employee is rehired, the employer must submit a new hire report if the employee was separated for at least 60 consecutive days. Some states may provide for a shorter timeframe.

For a copy of the OCSE guidance please click on the link provided below.
https://www.acf.hhs.gov/css/resource/reporting-employee-terminations-for-private-employers-and-federal-agencies

ADP Compliance Resources

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Updated on August 7, 2017

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