PAYMENT PROCESSING

CS 555P Distribution Overrides †††††††††††††††

10/98 Revised 09/23/09 Training Completed 10/09†††

42 U.S.C 657; R527-330

 

Support payments received by the Office of Recovery Services/Child Support Services (ORS/CSS) are sent to the State Disbursement Unit (SDU) Financial Services unit for processing.The SDU staff researches the payment and posts it to the non-custodial parentís (NCPís) HLCI account or to the NCPís case account. ORSIS automatically distributes the payment to the NCPís debts using distribution rules.When the payment is distributed to a non-IV-A debt or an incoming interstate case, the payment disburses to the custodial parent (CP) or interstate payee.

 

 

Financial Services Directed Override to Distribution

 

There are circumstances when it is appropriate to override the distribution programming within ORSIS and post payments directly to the NCPís case and/or debts.These circumstances include:

 

1.                   The NCP expresses intent.A NCP may express his/her intention of where a payment should be applied.Intent may be expressed by the NCP or payor either verbally or in writing at the time the payment is made or received.The NCP may express his/her intent to have a payment posted to a specific case, but can not specify the debt the payment should be applied to.In accordance with 42 U.S.C 657(a), current support must first be met before the payment (except Federal tax intercept payments) is applied to arrears.

 

 

A payment is posted with intent when:

a.                   the NCP makes a payment at the ORS office and indicates which case the payment is intended for.Because the specific case number(s) are added to the receipt, the payment is posted to the intended case with an override;

b.                  CSS receives a check from the NCP and it is payable to the CP.The payment is posted to the CPís case with an override;

c.                   CSS receives a check from the NCP and the CP or childís name on the check.The payment is posted to the CPís case(s) or to the case(s) in which the child is associated with an override; or,

d.                  CSS receives a check from the NCP and the case number is on the check.The payment is posted to the case indicated with an override.

e.                  ORS receives a payment through the Online Payment Web Application and a specific case number is selected by the NCP.The payment is posted to the specified case with an override

f.                    ORS receives a payment by phone, the NCP calls into the ORS Employer/Agency Customer Service Unit and expresses intent for which case the payment is intended for.The payment is posted to the specified case with an override††††

 

NOTE:If a payment is posted with a case or case/debt override and it is a prior period receipt, the prior period receipt rules only apply to the case up to the override amount.The rest of the payment is posted and distributed according to prior period receipt rules.††

 

NOTE:Do not transfer payments posted with intent to another case unless you have obtained the NCPís permission, or the case you are transferring from is paid in full.

 

2.                   Payments received on outgoing interstate cases.Payments received from another state on an outgoing interstate case are posted to the case listed/identified on the payment. ORSIS distributes the payment using distribution rules to the appropriate debts within that case.The override ensures that the payment received from another state is applied to the intended case when the NCP has more than one case.

 

3.                   Payments received from Federal tax intercept.ORSIS automatically posts Federal tax intercept payments, to the case and debt certified for Federal taxes with an override.

 

4.                   Worker request.At times, it may be appropriate to add a posting note/instruction for SDU to override the distribution programming in ORSIS; e.g., if the payment received is a discounted settlement or a payment intended for a criminal case(s).