Where To Go For More Information
There are standard record specifications for child support payments. NACHA publishes the User Guide for Electronic Child Support Payments Visit disclaimer page to provide SDUs, employers, and their financial institutions with current formats, definitions, and implementation recommendations to remit child support payments and payment information electronically through the ACH network using current conventions and standards.
Lump Sum Payment Requirements For Employers
Pursuant to Mississippi Code Section 93-11-103, employers are required to report lump-sums paid to employees of over $500 to the Department of Human Services if the employer has been served with a withholding order that includes a provision for the payment of arrears. Lump-sums are defined in Mississippi Code Section 93-11-101. The employer shall notify the Department of Human Services of its intention to make a lump-sum payment at least 45 days before the planned date of the payment or as soon as the decision is made to make the payment, should that be less than 45 days. The employer shall not release the lump-sum to the obligor until 30 days after the intended date of the payment or until authorization is received from the Department of Human Services, whichever is earlier. The Department of Human Services shall provide the employer with a Notice of Lien specifying the amount of the lump-sum to be withheld for payment of child support arrears.
To report a lump-sum or for further lump-sum inquiries, please email or fax us at firstname.lastname@example.org or 800-937-8668.
State Agencies In Mississippi
State agencies who deduct child support payments from employee checks to pay to the Mississippi Department of Human Services can make remittances electronically via electronic funds transfer . Remittances will need to be directed to Regions Bank CHILD SUPPORT METSS, vendor # V0001361941. For more information, contact 601-359-4500.
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Tax Refund Intercept Delays
An NCP will usually be notified approximately 60 days before the Clearinghouse receives any funds. While CSSD is required to apply the funds to the arrears balance when the collection is received, CSSD may hold the collection prior to disbursing it for a period of one to six months to allow for other claims to be filed. Also if such funds are received and a debt is owed to the District of Columbia, the debt owed to the state will be paid first. This is in compliance with federal and state requirements.
Section A: Personal Information
Include your name, mailing address, date of birth, Social Security number, New York Case Identifier , county name, phone number, and email address.
The New York Case Identifier is your child support account number or Case ID . This number is printed on court documents or official notices from the child support agency. You must include your child support account number.
Your email address is optional. All other information is required.
Be sure to sign and date the form.
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Is Medical Insurance Required To Be Provided When The Child Does Not Live In The Service Area
Yes. By law, medical insurance coverage available to the parent-employee cannot be denied to a child even though:
- The child was born out of wedlock and paternity has been established
- The child is not claimed as a dependent on the parents income tax return
- The child does not live with the parent
- The child does not live in your insurers service area
What Determines Child Support Payments
The amount of child support is hugely influenced by custody agreements and state law. To illustrate, some states do not give approval for child support if the income of both parents is relatively the same or they bring up their children together.
Traditionally, the custodial parent pays for kids needs until the age of 18, when an individual is more or less independent and is capable of earning money by themselves. However, payments can transform into tuition fee assistance.
Parents must decide on the schedule of child support payments. If they cannot manage to come up with a common decision, then the court will propose their own plan. This plan would be created regarding each spouses share in the common income. For example, one parent earns $27,000 a year, and the other has an income of $73,000. Thus, the first persons share is approximately 1/3 of the total family income and the others is 2/3. The court will propose the schedule which lasts for three years and would be repeated after the three years have concluded. The custodial parent, who earns 1/3 of the total income, takes the deduction for the first year, while the non-custodial parent, who has a share of 2/3, takes the deduction for the following two years.
However, if a parent has an unsuccessful alimony payment history, he or she can be deprived of the right to take the dependency exemption.
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How Is The Amount Of Alimony Determined
The amount of alimony is calculated individually based on several factors. These are the following: length of the marriage income of paying spouse, the income of receiving spouse their future earning prospect their lifestyle and expenses. To paraphrase, if there is a long marriage, and while one spouse did not advance his or her career because of children and the others did, then one of the spouses would be awarded additional payments.
The percentage of alimony from the income of the paying parent is usually 10-30 percent. However, there is a rule that the amount of alimony largely depends on the sum income of both ex-partners. For example, the lower the wifes salary is, the more the husband has to pay.
Here is a list of things that determine alimony:
- It is paid only in cash or cheque.
- It is received fully or on behalf of the spouse
- It is paid by the parent who spends less time with the child and is received by the parent who takes permanent care of it.
- Alimony is only paid if the former spouses live in the same household.
If the payments do not fit into these boundaries, both spouses are influenced. The one who pays will get fewer deductions, which equals to lower tax liability. The parent living with the child and receiving these payments will have a lower income tax. But this is how it was before January 1st of 2019.
According to the new law, the person who is paying spousal support will not be able to deduct it from their taxes.
National Medical Support Notice
The National Medical Support Notice is a standardized federal form that all state IV-D child support agencies must use.
The NMSN Requirements:
- The Child Support Agency
DCSS will complete its section of the form and send it to the employer with the rest of the National Medical Support Notice packet.
- Determine if any of the four categories listed on the Employer Response apply to you or to the employee:
- You do not provide health care coverage for your employees.
- The employee is not eligible for the health care coverage you provide.
- The employee has been terminated or has left this employment.
- The deduction for health care coverage cannot be made because of state or federal withholding limits and/or the states priority for withholding. The limitations will be included in the instructions that come with the NMSN or with the instructions you receive from DCSS.
If yes: complete the Employer Response form and return it to the issuing agency within 20 business days.
If no: forward Part B: Medical Support Notice to your health plan administrator. The plan administrator will notify you when enrollment has been completed.
Notify your payroll office or service to make the appropriate deductions for the employee contribution required under the health plan. At this point, you can determine whether the total deductions are greater than the maximum allowed under the Consumer Credit Protection Act and any applicable state law.
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Child Support Payment Options For Parents
- MyChildSupport allows noncustodial parents to make payments on our secure website:MyChildSupport.
- Online banking can be used to pay child support electronically for financial institutions that contract with Checkfree. Enter your nine digit social security number, without dashes, in the customer account number field. The payee Treasurer of Virginia and the payment address of PO Box 570, Richmond, VA 23218, have been programmed to generate EFT payments to Virginia Child Support Enforcement.
Under Which Insurance Plan Should The Child Be Enrolled
Enroll the child under the same health benefit plan in which your employee is enrolled. If the employee is offered more than one health plan, the plan chosen by the employee must provide coverage for dependents.
What licenses can be suspended?
- Any occupation and/or professional license regulated by the state of Mississippi
- Business licenses
- Hunting/Fishing licenses
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Three Steps To Implement
Step 1: Determine whether your payroll/accounting system supports electronic payments for child support. If it does not, you may want to explore these options:
- In-house information technology staff may be able to make programming changes so that you can produce electronic payments for child support, including the EDI DED child support addendum record that child support agencies need to identify the payments.
- Your payroll/accounting software developer may have an enhancement that supports electronic payments for child support. Contact your users group or software representative.
- Your bank may have a software package that will enable you to produce the file formats necessary for electronic payments. Contact your bank and ask for someone in Cash Management, Treasury Management, or Treasury Services.
- This is not always the child support agency or SDU where you are located. It is the agency or SDU in the state that issued the underlying child support order or where you currently send funds.
- Find out the EFT/EDI start-up procedures for the child support agency where you send funds. Do not attempt to transmit child support payments electronically without this information.
Step 3: Conduct the EFT/EDI start-up procedures for each of the child support agencies you contacted in Step 2. These procedures will typically include:
Section B: Financial Institution
All information is required: the name and address of the financial institution the type of accountchecking or savings account number and routing transit number the representative’s signature, printed name, and date.
Remember, all information must be completed!If anything is omitted, your form will be rejected.
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Main Questions For Alimony Child Support And Taxes
Many people have difficulty in telling how alimony differs from child support. It lies in their purposes. Alimony is paid as financial help for the second spouse, while child support is a payment meant to provide the basic needs of children. These basic needs include medical care, clothes, education, food, housing, and others.
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Reporting Taxable Alimony Or Separate Maintenance
If you paid amounts that are considered taxable alimony or separate maintenance, you may deduct from income the amount of alimony or separate maintenance you paid whether or not you itemize your deductions. Deduct alimony or separate maintenance payments on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors , Additional Income and Adjustments to IncomePDF). You must enter the social security number or individual taxpayer identification number of the spouse or former spouse receiving the payments or your deduction may be disallowed and you may have to pay a $50 penalty.
If you received amounts that are considered taxable alimony or separate maintenance, you must include the amount of alimony or separate maintenance you received as income. Report alimony received on Form 1040 or Form 1040-SR PDF) or on Form 1040-NR, U.S. Nonresident Alien Income Tax Return PDF). You must provide your SSN or ITIN to the spouse or former spouse making the payments, otherwise you may have to pay a $50 penalty.
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Multiple Child Support Orders For The Same Employee
You must add together the court-ordered current support owed for each order and withhold that amount first. If this amount does NOT exceed the CCPA or appropriate State law, you may withhold additional earnings for any arrears obligation, provided the total amount withheld does not exceed the amount available under the CCPA or appropriate State law.
Alimony Or Separate Maintenance In General
A payment is alimony or separate maintenance if all the following requirements are met:
- The spouses don’t file a joint return with each other
- The payment is in cash
- The payment is to or for a spouse or a former spouse made under a divorce or separation instrument
- The spouses aren’t members of the same household when the payment is made
- There’s no liability to make the payment after the death of the recipient spouse and
- The payment isn’t treated as child support or a property settlement.
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Withholding Orders/notices From Other States
A direct income withholding order issued by any state may be sent across state lines directly to the noncustodial parents employer in another state.
- Upon receipt, if the Order/Notice appears regular on its face, you must honor it.
- You must provide a copy of the Order/Notice to the employee immediately.
- You must begin income withholding and send the payments to the address cited in the Withholding Order/Notice.
- You must continue to honor the Withholding Order/Notice until official notification is received from the child support enforcement agency/court to stop or modify the withholding.
- If you comply with these basic requirements, you will not be subject to civil liability to an individual or agency with regard to your withholding of child support from the employees income.
Using Venmo To Pay Alimony
I have recently finished my divorce from my wife. We came to an agreement that I would pay alimony and also child support for our son. I am going to be making my first payment soon and I was wondering if it is alright for me to use Venmo to pay my alimony/child support. Is this allowed? Is there any reason I shouldnt use Venmo for these transactions?
Dear Newly Divorced,
Wolf & Shore Law Group
*The situations represented in our Dear Attorneys column are entirely fictional and any resemblance to a specific case is unintentional. We cannot, and will not, offer legal advice to anyone who is not a client. However, if you do have questions or concerns, you should contact an attorney at your convenience.
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Setting Up Or Changing Child Support Payments
To begin receiving child support payments or to change how you currently receive support payments, complete one of the forms below. If you dont let us know how you want to receive your child support payments, we will enroll you in the ReliaCard option:
Once completed, please return to the following address, fax it to the number below, or upload it through your online account:
ATTN: Electronic Payments
Tax Treatment Of Alimony And Separate Maintenance
Amounts paid to a spouse or a former spouse under a divorce or separation instrument may be alimony or separate maintenance payments for federal tax purposes. Certain alimony or separate maintenance payments are deductible by the payer spouse, and the recipient spouse must include it in income .
Note: You can’t deduct alimony or separate maintenance payments made under a divorce or separation agreement executed after 2018, or executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification. Alimony and separate maintenance payments you receive under such an agreement are not included in your gross income.
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A Simple Acknowledgment Of Paternity
ASAP is Mississippis voluntary paternity establishment program. ASAP makes it possible for parents to establish paternity in hospitals and other birthing facilities, at the State Department of Health, County Health Departments, and the Division of Field Operations.
This procedure carries the same legal effect as if the father and the mother were married at the time between conception and birth. The program allows the fathers name to be added to the birth certificate.
Mississippi New Hire Reporting
All employers are required to report basic information about newly-hired personnel to a designated state agency within 15 days. A penalty of $25 per case , or up to $500 for collusion between employer and worker, shall be assessed for not reporting as directed by law. To obtain more information, go to the website: www.ms-newhire.com or contact us at the following address:
P. O. Box 437Fax: 800-937-8668
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Receiving Child Support Payments
CSSD cannot guarantee that payments will be received on a consistent basis. If the payments are deducted from the wages of a non-custodial parent, the employer should remit the payments to the Clearinghouse according to the NCPs pay dates. Most payments received by the Clearinghouse come through the mail, and mail times will vary.
Payments Not Alimony Or Separate Maintenance
Not all payments under a divorce or separation instrument are alimony or separate maintenance. Alimony or separate maintenance doesnt include:
- Noncash property settlements, whether in a lump-sum or installments,
- Payments that are your spouse’s part of community property income,
- Payments to keep up the payer’s property,
- Use of the payer’s property, or
- Voluntary payments .
Child support is never deductible and isn’t considered income. Additionally, if a divorce or separation instrument provides for alimony and child support, and the payer spouse pays less than the total required, the payments apply to child support first. Only the remaining amount is considered alimony.
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