INCOME WITHHOLDING

CS 750P Automatic Payment Withdrawal

05/07/18 Training Completed 05/17/18

U.C.A. 62A-11-703, R527-303 

 

 

Introduction

 

Automatic Payment Withdrawal (APW) is an alternative to income withholding available to non-custodial parents (NCPs).  APW allows an NCP to have his/her child support payments withdrawn from a bank account in lieu of income withholding.

 

 

Statutory Authority

 

Utah Code Annotated (U.C.A.) 62A-11-703 states:

Alternative payment by obligor through electronic funds transfer.

(1) The office may enter into a written alternative payment agreement with an obligor which provides for electronic payment of child support under Part 4, Income Withholding in IV-D Cases, or Part 5, Income Withholding in Non IV-D Cases. Electronic payment shall be accomplished through an automatic withdrawal from the obligor's account at a financial institution.

(2) The alternative payment agreement shall:

(a) provide for electronic payment of child support in lieu of income withholding;

(b) specify the date on which electronic payments will be withdrawn from an obligor's account; and

(c) specify the amount which will be withdrawn.

(3) The office may terminate the agreement and initiate immediate income withholding if:

(a) required to meet federal or state requirements or guidelines;

(b) funds available in the account at the scheduled time of withdrawal are insufficient to satisfy the agreement; or

(c) requested by the obligor.

(4) If the payment amount requires adjusting, the office may initiate a new written agreement with the obligor. If, for any reason, the office and obligor fail to agree on the terms, the office may terminate the agreement and initiate income withholding.

(5) If an agreement is terminated for insufficient funds, a new agreement may not be entered into between the office and obligor for a period of at least 12 months.

(6) The office shall make rules specifying eligibility requirements for obligors to enter into alternative payment agreements.”

 

 

Definition

 

1.                   Utah Interactive – The vendor handling APW.  The Office of Recovery Services Information System (ORSIS) communicates with Utah Interactive when setting up APW, when an NCP is delinquent in making payments, and to terminate an APW.

 

 

Criteria for Automatic Payment Withdrawal

 

Administrative rule R527-303-2 Automatic Payment Withdrawal outlines the criteria established by ORS which must be met in order for a case to qualify for Automatic Payment Withdrawal, as required by U.C.A. 62A-11-703(6).  A case qualifies for Automatic Payment Withdrawal when the criteria listed below are met.

 

1.                   The NCP has a verified address;

 

2.                   The NCP has not been disqualified from using APW in the last 12 months;

 

3.                   The ACCEPT IVR-WEB PMTS field in ORSIS is marked as a ‘Y’; and,

 

4.                   The NCP is not an obligor on an active outgoing intergovernmental case.

 

 

Automatic Payment Withdrawal Registration

 

An NCP may register for APW through Utah Interactive by accessing the Interactive Case Access System (ICA) through the Office of Recovery Service’s (ORS) webpage (http://ors.utah.gov).  The NCP must have an account set up in the ICA before s/he can register for APW.  

 

1.                   If an NCP is approved for APW based on the approval criteria and s/he accepts the terms and conditions, Utah Interactive will allow the NCP to continue the registration process.  If the NCP is denied for APW, s/he will receive an email from Utah Interactive informing him/her that they were denied and the reason for the denial. 

 

2.                   The NCP will choose a payment schedule for APW.  Each payment schedule option will list the amount that will be withdrawn from the NCP’s bank account.  This amount is based on his/her current support due and arrears payment.  The payments can be scheduled to be withdrawn from his/her bank account:

a.                   Monthly;

b.                  Semi-monthly;

c.                   Bi-weekly; or,

d.                  Weekly.

 

NOTE 1:  The payment schedule will include all of the NCP’s cases that meet the criteria for APW.  The NCP cannot select specific cases to include or exclude in the APW.

 

NOTE 2:  The NCP can change the payment schedule at any time.  The changes will not go into effect until the following month to ensure that the full monthly amount due is received for the current month.  Utah Interactive will send the NCP an email confirming the schedule change and when it will go into effect.

 

3.                   The NCP must then complete the registration process by entering his/her bank account information and selecting a start date for APW.

a.                   If there is a Notice to Withhold (NTW) in place, ORSIS will terminate the NTW and the start date must be at least ten business days in the future.

b.                  If there is no NTW in place, the start date can be the next day.

 

NOTE:  The start date for monthly or semi-monthly payments cannot be on or after the 26th of the month.  If the NCP is registering for APW on the 26th of the month or later, the APW cannot begin until the following month.  The schedule must allow enough time for the payment to be processed before the end of the month.

 

4.                   The NCP will receive an email from Utah Interactive informing him/her that the registration process is complete. The email will list the payment frequency, payment amount, and the date that the first payment will be deducted from his/her account. 

 

 

Arrears Payments on Automatic Payment Withdrawal

 

In order for an arrears payment to be included in the APW, the case must meet the same criteria that are required for arrears to be included in a Notice to Withhold.  If the case meets the criteria for arrears to be included, the arrears payment will be calculated into the payment schedule for the NCP.

 

If an arrears payment is added to an APW after the initial registration process, or if the monthly payment amount changes, Utah Interactive will send an email to the NCP informing him/her of the change.

 

 

Case Delinquent for APW Payment Method

 

When an NCP applies for APW and agrees to the terms and conditions, s/he is agreeing to pay the full obligation every month.   If Utah Interactive is unable to withdraw the payment from the NCP’s financial account, an email will be sent to the NCP informing him/her that payment is still due and must be received before the end of the month.  If the full monthly obligation is still not received, the case will be considered delinquent.  ORSIS monitors a case on APW using standard delinquency testing. 

 

1.                   Determine if the delinquency is due to the NCP’s APW schedule.  If the payments posted match the weekly or bi-weekly amounts expected and no payments have been missed, the case is not delinquent.  Note on the case that the delinquency is due to the payment schedule and take no further action on the case.  If the delinquency is due to a missed or partial payment, contact the NCP to determine why the payment was missing or insufficient.  Determine what the next appropriate action is (e.g., the NCP will make the payment up, terminate the APW and initiate income withholding, etc.). 

a.                   If NCP pays the delinquency by the end of the month and all of the current monthly payments are received, leave the APW in place.

b.                  If the NCP fails to pay the delinquency by the end of the month and/or fails to make all of the current monthly payments, or if the case has been delinquent more than once, terminate the APW so ORSIS can send an NTW to the NCP’s employer.

 

NOTE:  Discuss the case with your manager and get approval from the Regional Director (RD) if there is a good reason to allow an NCP to remain on APW even after multiple delinquencies (e.g., there is not a good employer for the NCP and an NTW will not be sent, the NCP is self-employed, etc.).  The RD must add a detailed narrative to the case explaining why the NCP was allowed to remain on APW.

i.                     When terminating an APW, it is important to ensure that termination of the APW is appropriate.  Once a worker commits the termination, a notice to withhold will generate and be sent to the NCP’s employer and the DISQUALIFIED UNTIL date will be updated.  If the termination was committed by mistake, the worker must change the DISQUALIFIED UNTIL date to today’s date, contact the NCP, and explain that the NCP must reapply for APW.  Once the NCP reapplies for APW and is approved, an income withholding termination will be sent to the NCP’s employer. 

 

ii.                   If the NCP has been disqualified from APW and has reapplied for and been approved for APW multiple times and continues to miss payments, the NCP should be excluded from APW.  When an NCP is excluded from APW, s/he will not be able to reapply.    

 

 

Automatic Payment Withdrawal Emails

 

Depending on which part of the process a case is in, or when certain actions are taken on a case regarding APW, Utah Interactive will inform the NCP by sending specific emails.  The specific text for these different emails is as follows:

 

1.                   “Automatic Payment Withdrawal Approval” – When an NCP has completed the registration process and been approved for APW, s/he will receive this email:

 

“This email is to inform you that your recent request to use the automatic payment withdrawal (APW) service for making your monthly child support payment(s) has been approved and the registration process is complete.

 

ORS will debit your bank account in accordance with the instructions that you provided.  The payment will be applied to the appropriate child support case(s) with ORS.

 

Your payment frequency and amount is:  (selected payment frequency and amount).

 

The first child support payment should be deducted from your bank account on (selected start date).

 

If you are currently on income withholding through the Office of Recovery Services, ORS will send a Termination of Notice to Withhold Child Support to your employer.

 

Remember your child support payments are due each month per your order.  If for any reason your payment is not deducted from your bank account and sent to the office, you are responsible to make that payment yourself and send it directly to ORS.

 

Thank you for your cooperation in implementing payment through the APW service.  If you have any questions regarding APW service or the amount(s) to be withheld and submitted to ORS each month, please contact the Office of Recovery Services at (801) 536-8500.”

 

2.                   “Automatic Payment Withdrawal Denial” – When an NCP is denied APW services, s/he will receive this email:

 

“This email is to inform you that your recent request to use the automatic payment withdrawal (APW) service for making your monthly child support payment(s) has been denied.  The reason for this decision is (reason for denial). 

 

If this information is incorrect or it changes in the future, you may reapply for the automatic payment withdrawal option.  If you have any questions regarding this decision or the APW service, please feel free to contact the Office of Recovery Services at (801) 536-8500.”

 

3.                   “Automatic Payment Withdrawal Registration Failed” – If there is a technical error in the registration process and the registration fails, Utah Interactive will send this email:

 

“This email is to inform you that there was an error while processing your request for Automatic Payment Withdrawal.  Please complete the registration again.

 

If you have any questions regarding the APW service, please feel free to contact the Office of Recovery Services at orswebtech@utah.gov.”

 

4.                   “Automatic Payment Withdrawal Account Accessed” – Each time an existing APW account has been accessed through the ICA, the NCP will receive this email:

 

“This email is to inform you that your account profile has been accessed and changes may have been made.  If you did not access this information, contact the Office of Recovery Services at orswebtech@utah.gov.”

 

5.                   “Automatic Payment Withdrawal Financial Account Information Accessed” – Each time the financial account information in an existing APW account has been accessed, the NCP will receive this email:

 

“This email is to inform you that your banking information has been accessed and changes may have been made to your account.  If you did not access this information, contact the Office of Recovery Services at orswebtech@utah.gov.”

 

6.                   “Automatic Payment Withdrawal Account Update” – If an NCP updates the financial account details for the APW, the NCP will receive this email:

 

“This email is to inform you that your recent request to update your financial account details for automatic payment withdrawal (APW) service for making your monthly child support payment(s) has been approved.

 

Remember your child support payments are due each month per your order.  If for any reason your payment is not deducted from your bank account, you are responsible to make that payment yourself and send it directly to ORS.

 

If you have any questions regarding APW service or the amount(s) to be withheld and submitted to ORS each month, please contact the Office of Recovery Services at (801) 536-8500.”

 

7.                   “Automatic Payment Withdrawal Frequency Change” – If an NCP changes his/her payment frequency for APW, s/he will receive this email:

 

“This email is to inform you that your recent request to change the frequency of your monthly child support payment(s) through Automatic Payment Withdrawal (APW) service has been approved.

 

Remember your child support payments are due each month per your order.  If for any reason your payment is not deducted from your bank account, you are responsible to make that payment yourself and send it directly to ORS.

 

If you have any questions regarding APW services or the amount(s) to be withheld and submitted to ORS each month, please contact the Office of Recovery Services at (801) 536-8500.

 

If you did not make this change to your payment frequency, contact the Office of Recovery Services at (801) 536-8500.”

 

8.                   “Modified Monthly Payment Amount” – If the NCP’s monthly amount due changes (e.g., a child emancipates, an arrears payment is added, the child support order is modified, etc.), the NCP will receive this email:

 

“This email is to inform you that the total monthly amount to be withheld from your financial account each month has been changed to $(amount)(frequency).  The reasons for this change may be due to a new case, a change in an insurance credit, a change in the monthly arrears payment, a child emancipated, a new or modified child support order, etc.  If none of these reasons apply to your situation or you have questions regarding this action, please contact ORS at (801) 536-8500.”

 

9.                   “Automatic Payment Withdrawal Scheduled Payment Cancelled” – If an NCP cancels his/her next scheduled payment, the NCP will receive this email:

 

“This email is to notify you that your scheduled child support payment from your financial account via automatic payment withdrawal (APW) service has been canceled.   If the full payment is not made by the end of the month, it will be considered a violation of the Terms and Conditions and a basis to terminate the APW service.  If the violation is not corrected by the end of the month, a Notice of Income Withholding may be sent to your employer.   

 

Pursuant to the Terms and Conditions you entered into with this office, once the agreement has been terminated by either party, you will no longer be eligible to participate in the APW service for one year.  If this information is incorrect or you have any questions regarding this issue, please contact ORS at (801) 536-8500.”

 

10.               “Automatic Payment Withdrawal Failed Payment” – If Utah Interactive is unable to deduct the scheduled payment from the NCP’s bank account, the NCP will receive this email:

 

This email is to notify you that your scheduled child support payment could not be deducted from your financial account via automatic payment withdrawal (APW) service.  If the full payment is not made by the end of the month, it will be considered a violation of the Terms and Conditions and a basis to terminate the APW service.  If the violation is not corrected by the end of the month, a Notice of Income Withholding may be sent to your employer.

   

Pursuant to the Terms and Conditions you entered into with this office, once the agreement has been terminated by either party, you will no longer be eligible to participate in the APW service for one year.  If this information is incorrect or you have any questions regarding this issue, please contact ORS at (801) 536-8500.

 

 

11.               “Automatic Payment Withdrawal Termination” – If ORS terminates the APW agreement with the NCP, the NCP will receive this email:

 

“This email is to notify you that the Office of Recovery Services (ORS) has terminated your agreement to make your monthly child support payments from your bank account.  The reason for the termination of this agreement is (reason for termination).

 

Termination of this agreement means that a Notice of Income Withholding may be sent to your employer for immediate implementation.  If the payment is not deducted from your bank account or employer, you are responsible to ensure that ORS receives your full child support payment(s) due and owing for that month.

  

Pursuant to the Terms and Conditions you entered into with ORS, once the agreement has been terminated by either party, you are no longer eligible to participate in the automatic payment withdrawal (APW) service for one year.  If you have any questions regarding this decision or the APW service, please feel free to contact ORS at (801) 536-8500.”