Electronic Remittance of Support Payments

DEPARTMENT OF REVENUE
Division of Child Support Enforcement

RULE NO: RULE TITLE
12E-1.032: Electronic Remittance of Support Payments

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 32 No. 52, December 29, 2006 issue of the Florida Administrative Weekly.

These changes are in accordance with subparagraph 120.54(3)(d)1., F.S., and in response to comments received from the Florida Association of Court Clerks.

Paragraph (i) of subsection (2) of Rule 12E-1.032, F.A.C., has been changed, so that, when adopted, the paragraph will read as follows:

(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.

Paragraph (a) of subsection (3) of Rule 12E-1.032, F.A.C., has been changed, so that, when adopted, the paragraph will read as follows:

(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).”

Subsection (4) of Rule 12E-1.032, F.A.C., has been changed, so that, when adopted, the subsection will read as follows:

(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 [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), 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).

Subsection (5) of Rule 12E-1.032, F.A.C., has been changed, so that, when adopted, the subsection will read as follows:

(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 (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 employer’s 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.

(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 Section 61.1301(2)(e)6., 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), 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 subsection (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.

Paragraph (b) of subsection (6) of Rule 12E-1.032, F.A.C., has been changed, so that, when adopted, the paragraph will read as follows:

(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 Section 674.104(1), F.S.