The purpose of these rule amendments is to provide instruction to employers about the waiver process to be used by the Department in accordance with the electronic remittance requirements in Section 61.1824(6), Florida Statutes. The effect of this ...

DEPARTMENT OF REVENUE
Division of Child Support Enforcement

RULE NO: RULE TITLE
12E-1.032: Electronic Remittance of Support Payments
PURPOSE AND EFFECT: The purpose of these rule amendments is to provide instruction to employers about the waiver process to be used by the Department in accordance with the electronic remittance requirements in Section 61.1824(6), Florida Statutes. The effect of this proposed rule is to inform the public that employers who are unable to pay support electronically may request a waiver from the requirement to send support payments electronically and to describe the waiver process to be used by the Department.
SUBJECT AREA TO BE ADDRESSED: The subject of this workshop is to implement a procedure to be used in accordance with the electronic remittance requirements in Section 61.1824(6), Florida Statutes, which permits the Department to grant waivers to employers who are unable to pay support electronically.
SPECIFIC AUTHORITY: 61.1824(6), 409.2557(3)(o) FS.
LAW IMPLEMENTED: 61.1824(6) FS.
A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: January 9, 2008, 1:30 p.m.
PLACE: 4070 Esplanade Way, Room 258, Tallahassee, FL 32399-3150
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Phil Scruggs, Government Analyst II, Child Support Enforcement Program, Department of Revenue, P. O. Box 8030, Tallahassee, Florida 32314-8030, telephone [phone], e-mail address [e-mail]

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:

12E-1.032 Electronic Remittance of Support Payments.

(1) Scope. This rule chapter sets forth the rules to be used in the administration of Section 61.1824(6), Florida Statutes, F.S., which provides for the electronic remittance of support payments deducted pursuant to an income deduction order or income deduction notice and the electronic submission of associated case data by an employer to the State Disbursement Unit. An employer who needs general information concerning the electronic remittance of support payments and associated case data may contact the State Disbursement Unit, EFT Marketing, at [phone]. An employer who needs information about a waiver from electronic remittance and filing requirements may contact the Department of Revenue, toll free, at 1(866)435-2763, or the State Disbursement Unit, EFT Marketing, at [phone].

(2) Definitions. As used in this rule:

(a) “Addenda record” means information required by the Department in an Automated Clearing House Credit “ACH credit” transfer that is needed to completely identify an employer or provide information concerning a payment, in approved electronic format.

(b) “Associated case data” means support payment information required to be submitted to the State Disbursement Unit pursuant to Title IV-D of the Social Security Act. Paragraph (5)(h), subparagraphs 1. through 10., of this rule lists the case data required to be submitted to the State Disbursement Unit.

(c) “Automated Clearing House” or “ACH” means a central distribution and settlement point for the electronic clearing of debits and credits between financial institutions rather than the physical movement of paper items.

(d) “Automated Clearing House Credit” or “ACH credit” means the electronic transfer of funds generated by the employer, cleared through the ACH for deposit to the State Disbursement Unit.

(e) “Department” means the Florida Department of Revenue.

(f) “Due date” means the date that an electronic payment and associated case data must be received by the State Disbursement Unit.

(g) “Electronic means” includes any one or more of the following methods of transmitting funds or data: electronic data interchange, electronic funds transfer, Internet, or any other technology designated by the Department.

(h) “Employer” means a person, business, or organization that pays one or more workers to perform a service or engage in an activity in exchange for financial compensation.

(i) “Employer’s designated child support payment processor (hereafter called employer’s processor)” means a financial institution or business utilized by the employer to provide ACH support payment services.

(j) “National Automated Clearing House Association” or “NACHA” means the national trade association for electronic payments associations, which establishes the rules, industry standards, and procedures governing the exchange of commercial ACH payments by depository financial institutions.

(k) “State Disbursement Unit” or “SDU” means the single unit in the state that receives all withheld support payments and processes all support payments pursuant to Section 61.1824, Florida Statutes. F.S.

(3) Methods of Transferring Funds and Associated Case Data by Electronic Means.

(a) Electronic remittance of support payments and associated case data by the employer or the employer’s processor to the State Disbursement Unit shall be in a format used within the “Automated Clearing House” or “ACH” network to conduct the transfer of support funds between business or government entities. An acceptable format includes either “Cash Concentration and Disbursement Plus (CCD+)” or “Corporate Trade Exchange (CTX).”

(b) The ACH credit transfer is the method by which employers subject to electronic payment requirements under this rule shall remit payments and associated case data by electronic means.

(4) Remittance or Transmission Problems.

(a) If the employer or employer’s processor incorrectly submits associated case data or incorrectly remits support payments, the employer or the employer’s processor shall contact, not later than the next business day after the date on which the error is discovered, the State Disbursement Unit toll-free at 1[phone] or local number at [phone] for specific instructions.

(b) The State Disbursement Unit shall review payment error and associated case data problems, determine the course of action to correct the error(s), and take steps to process the information and payment. The Department shall assist the State Disbursement Unit in resolving these specific payment errors, on a case-by-case basis.

(c) To assist the employer or employer’s processor in complying with Section 61.1824(6), Florida Statutes, F.S., and this rule chapter, the State Disbursement Unit shall contact the employer or employer’s processor when one or more of the following conditions exist.

1. The employer or employer’s processor does not transmit error-free payments and associated case data.

2. The employer or employer’s processor varies from the requirements and specifications of these rules.

3. The employer or employer’s processor fails to make timely electronic payments or timely provide associated case data, or fails to provide the required addenda record with the electronic payment.

(d) The State Disbursement Unit shall help the employer or the employer’s processor resolve the condition(s) in paragraph (c).

(5) Procedures for Payment.

(a) Automated Clearing House Credit Method (ACH Credit Method). An employer who uses the ACH credit method must contact the employer’s financial institution or an employer’s processor that provides prescribed ACH services and arrange to transfer the support payment to the State Disbursement Unit using an ACH credit transfer.

(b) For the employer to establish ACH payments directly to the State Disbursement Unit, initially the employer or employer’s processor must contact the State Disbursement Unit, EFT Marketing, at [phone] and provide the information in subsection (c) below. The State Disbursement Unit will compare the information provided by the employer or employer’s processor with identifying information in the State Disbursement Unit’s child support computer system. Identifying information submitted by the employer or the employer’s processor must match the identifying information in the State Disbursement Unit computer system. The State Disbursement Unit will work with the employer to resolve discrepancies, if any are found. For the employer to establish ACH payments to the State Disbursement Unit, through an employer processor, the employer must contact the processor directly. For employers using a processor, the processor is responsible for verifying the information.

(c) The employer or the employer’s processor must provide the State Disbursement Unit with the following information for each obligor for whom payments will be remitted:

1. Obligor first and last name;

2. Obligor Social Security Number;

3. Obligee first and last name; and

4. Case identifier, as stated in subparagraph (h)3.

(d) The State Disbursement Unit will inform the employer or employer’s processor of the following when there is a match of the information listed in paragraph (c).

1. State Disbursement Unit’s banking information to send payments electronically; and

2. That electronic remittance of support payments may commence.

(e) Neither the State Disbursement Unit nor the Department will pay for expenses incurred by the employer or employer’s processor to use the ACH credit method. Pursuant to the income deduction provisions of Section 61.1301(2)(e)6., Florida Statutes, F.S., the employer may collect a fee from the employee’s income for each withheld payment.

(f) To assure the receipt of support payments by the due date, an employer or the employer’s processor must initiate the payment transaction in accordance with subsection (6).

(g) All ACH credit transfers must be in the NACHA Cash Concentration and Disbursement Plus “CCD+” or NACHA Corporate Trade Exchange “CTX” format containing an Accredited Standards Committee (ASC) X12 820 Payment Order/Remittance Advice Transaction Set with associated addenda record(s) for child support, in the format specified by NACHA guidelines as referenced herein. The Department uses NACHA guidelines to govern the formats and specifications for the electronic remittance of support payments and the electronic submission of associated case data, which are contained in the User Guide For Electronic Child Support Payments, Using The Child Support Application Banking Convention, Version 5.0, revised August 21, 2006, incorporated herein by reference. Members of the public may obtain a copy of the NACHA guidelines by writing to the Florida Department of Revenue, Child Support Enforcement Program, Attn: Forms Coordinator, P. O. Box 8030, Tallahassee, Florida 32314-8030, or by accessing http://www.nacha.org/. The employer, employer’s financial institution, or the employer’s processor providing ACH services may contact the State Disbursement Unit, EFT Marketing, at [phone] to determine the formats, standards, and technical requirements to implement this provision.

(h) The electronic record shall include the following associated case data fields.

1. Segment identifier – A unique identifier for a segment composed of a combination of two or three uppercase letters and digits. “DED” is the segment identifier.

2. Application identifier – The type of deduction withheld from an employee’s pay. “CS” is the application identifier.

3. Case identifier – The unique identifier composed of alpha and numeric characters based on the court order number.

4. Pay date – The date the income was withheld from the employee’s paycheck.

5. Payment amount – The amount of support withheld from the employee’s income for a specific pay period, which is paid to the State Disbursement Unit.

6. Noncustodial parent Social Security Number.

7. Medical support indicator – The indicator designates whether the employer offers family medical insurance coverage. If medical insurance coverage is available, place a ‘Y’ in the field; if there is no coverage available, place an ‘N’ in the field. The National Automated Clearing House Association standard requires this data element.

8. Noncustodial parent name.

9. Federal Information Processing Standard Code (FIPS code) – The unique code that identifies each child support jurisdiction (i.e., states, counties and central registries). As used in this rule, the FIPS code refers to the code of the State Disbursement Unit receiving the transaction.

10. Employment termination indicator – The employment termination indicator notifies the Department that an individual’s employment has terminated. The employer is required to report this information pursuant to Section 61.1301(2)(k), Florida Statutes. F.S. If the employee has terminated, place a ‘Y’ in this field; otherwise, the field is not used.

(i) The employer or employer’s processor may combine payment amounts from more than one employee in a single payment as long as the required information in paragraph (5)(h), subparagraph 1. through 10., is submitted for each employee. In addition, the employer or employer’s processor must separately identify the portion of the single payment that is attributable to each employee.

(6) Due Date.

(a) Pursuant to Section 61.1301(1)(a)3., Florida Statutes, F.S., the employer is required to remit support payments based upon the employee’s pay cycle.

(b) The employer or employer’s processor who is required to pay support and provide associated case data through electronic means must initiate the transfer so that the amount due is deposited as collected funds to the State Disbursement Unit’s account on or before the due date. If the date on which the employer or employer’s processor is required to initiate an ACH credit transfer falls on a Saturday, Sunday, or a business or banking holiday, the employer or the employer’s processor must initiate the transaction on the preceding business day. For the purpose of this rule, “banking day” has the meaning prescribed in the banking provisions of Section 674.104(1), Florida Statutes. F.S.

(7) Waiver From Electronic Filing Requirements. The Department is authorized to waive the requirement that an employer or employer’s processor pay support and provide associated case data through electronic means, if the employer or employer’s processor is issued a waiver by the Department from the requirement to electronically file tax returns under Section 213.755 or 443.163, Florida Statutes, F.S. or the employer or employer’s processor is unable to comply with the requirements of Section 61.1824(6), Florida Statutes, and this rule. To request a waiver the employer or employer’s processor must establish in writing the basis under which such waiver is requested. In this written request, the employer or employer’s processor must explain how one or more of the factors discussed in paragraph (a) of this subsection affect the ability to file electronically. After the Department verifies the explanation submitted by the employer or employer’s processor, it will respond in writing regarding the decision to grant or deny such waiver.

(a) To request a waiver from electronically sending support payments, the employer or employer’s processor must complete and submit Form CS-FM42, Electronic Remittance of Child Support Payments Request for Waiver, dated August 2007, incorporated by reference. The employer or employer’s processor must explain on Form CS-FM42 how one or more of the factors discussed in paragraph (c) of this subsection affect the ability to file electronically. Grounds for approving a request for a waiver include, but are not limited to:

1. Any of the circumstances specified in Section 213.755(9)(a) or (b), F.S.; or,

2. The employer or the employer’s processor does not have a modem; or,

3. The employer or the employer’s processor does not have access to the Internet.

(b) The Department shall review the information submitted by the employer or employer’s processor and respond in writing regarding the decision to grant or deny such waiver. The Department will use the following forms for this purpose. A waiver shall be valid for up to two years and the issuance of a subsequent waiver shall be contingent on the employer or the employer’s processor working with the Department during the current waiver period to address the issues that originally necessitated the issuance of the waiver. The requirement to work with the Department to address the issues that necessitated a waiver means the employer or the employer’s processor will: discuss existing computer capabilities with the Department; consider any assistance, recommendations, or training the Department offers; and, implement any Department recommendation that enables the employer or employer’s processor to remit support payments and associated case data by electronic means, unless the employer or employer’s processor can establish that the circumstances or reasons as set forth in Section 213.755, F.S., continue to apply.

1. Form CS-FM43, Electronic Remittance of Child Support Payments Waiver Approval Notice, dated August 2007, incorporated by reference. Form CS-FM43 states: that the waiver is approved for a specific period; the Department will remind the employer of the waiver expiration date at least sixty (60) days before it expires; and, before the current waiver expires, the employer may apply for another waiver if he or she is unable to comply with the requirements of Section 61.1824(6), Florida Statutes, and this rule. The Department will use Form CS-FM48, Electronic Remittance of Child Support Payments Waiver Expiration Notice, dated August 2007, incorporated by reference, as the reminder notice.

2. Form CS-FM47, Electronic Remittance of Child Support Payments Waiver Denial Notice, dated August 2007, incorporated by reference. Form CS-FM47 states that the waiver is denied, the reason for the denial, that the employer must send support payments and provide case data electronically to the State Disbursement Unit, and that the employer may contest the decision by requesting an administrative hearing under Chapter 120, Florida Statutes. The form includes a Notice of Rights.

(c) Grounds for approving a request for a waiver include:

1. Any of the circumstances specified in the taxation and finance state revenue laws of Section 213.755(9)(a) or (b), Florida Statutes; or,

2. The employer or the employer’s processor does not have access to the Internet.

(d) A waiver is valid for up to two years. The granting of a subsequent waiver is contingent on the employer or the employer’s processor working with the Department during the waiver period to address the issues that caused the Department to grant the waiver. The requirement to work with the Department means: discuss existing computer capabilities with Department personnel; consider any assistance, recommendations, or training the Department offers; and, implement any Department recommendation that enables the employer or employer’s processor to remit support payments and associated case data by electronic means, unless the employer or employer’s processor can establish that the circumstances or reasons in paragraph (7)(c) continue to apply. The Department shall issue subsequent waivers in accordance with this subsection.

(e) An employer may request an administrative hearing to contest the Department’s decision to deny the waiver. A written petition for an administrative hearing must be received by the Department of Revenue, Child Support Enforcement Program, Deputy Agency Clerk, 5050 West Tennessee Street, Building L, Tallahassee, FL 32339-0195, within twenty (20) days after receipt of form CS-FM47. Administrative hearings shall be conducted pursuant to Chapter 120, Florida Statutes.

(f) Members of the public may obtain a copy of the forms used in this rule chapter, incorporated by reference, without cost, by writing to the Department of Revenue, Child Support Enforcement Program, Attn.: Forms Coordinator, P. O. Box 8030, Tallahassee, Florida 32314-8030.

Specific Authority 61.1824(6), 409.2557(3)(o) FS. Law Implemented 61.1824(6) FS. History–New 5-31-07, Amended_________.