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.
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.
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.
ADP Compliance Resources
ADP maintains a staff of dedicated professionals who carefully monitor federal and state legislative and regulatory measures affecting employment-related human resource, payroll, tax and benefits administration, and help ensure that ADP systems are updated as relevant laws evolve. For the latest on how federal and state tax law changes may impact your business, visit the ADP Eye on Washington Web page located at www.adp.com/regulatorynews.
ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation. Our goal is to help minimize your administrative burden across the entire spectrum of employment-related payroll, tax, HR and benefits, so that you can focus on running your business. This information is provided as a courtesy to assist in your understanding of the impact of certain regulatory requirements and should not be construed as tax or legal advice. Such information is by nature subject to revision and may not be the most current information available. ADP encourages readers to consult with appropriate legal and/or tax advisors. Please be advised that calls to and from ADP may be monitored or recorded.
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Updated on August 7, 2017