The Office of Child Support Enforcement has updated its website with regards to reporting employee terminations.
Areas That Were Updated
WHEN TO REPORT TERMINATIONS: Employers must promptly report terminations of employees with child support orders to the court or agency that originally issued the order. Check your state laws as they may have even more specific rules for reporting terminations to State Disbursement Units.
HOW TO REPORT TERMINATIONS: For eTerm online reporting on the OCSE Child Support Portal, employers can notify the state child support agency electronically about an employee’s termination. To use fax or mail, employers should submit the completed Notification of Employment Termination or Income Status portion of the IWO to the child support agency that issued the original order. There are also some states that will accept termination information over the phone or on their state website. If you need to report terminations for National Medical Support Notices, follow the instructions on the NMSN.
WHY YOU MUST REPORT TERMINATIONS: Reporting terminations to child support agencies is important because it lets the agency know that the employer will no longer be withholding the child support. Even if an employee leaves in the first pay period of employment, employers still must report the termination if:
- an employee-employer relationship existed
- the employee completed a Form W-4
- a state new hire report was submitted for that employee
- the employee received a withholding order
REACTIVATING A WITHHOLDING ORDER FOR A REHIRED EMPLOYEE: Where employees are temporarily laid off or terminated, employers should keep their withholding orders. Check state laws for the length of time you must hold on to the order. When an employee is rehired, the employer has to report the employee as a rehire on the State New Hire report if the employee has been separated for at least 60 consecutive days. Again, check state laws because this window of time of separation does differ for some states.