A variety of government, public, and private employers elect to use the e-IWO process. With a few exceptions, the actions that caseworkers must take for e-IWO are the same as for other income withholding.
Employers have an FEIN (Federal Employer Identification Number) that is specific to their business or government entity. When sending an e-IWO, caseworkers must use the employer-specific FEIN to submit the initial, amended, and/or terminate I/W notice to the employer.
CSS caseworkers must initiate electronic income withholding for any NCP who has an order for income withholding and whose employer participates with NC in the e-IWO process by creating an employment record for the NCP in ACTS.
Active duty, retired, and reserve military employers under the Department of Defense participate in e-IWO. The US Coast Guard, which is under the Department of Homeland Security, uses immediate income withholding for its members.
If the withholding is being made from a source of income other than wages, the payor of that income must be notified by the Notice to Withhold for Child Support From Income Other Than Wages (DSS-4630). The same procedures and requirements for withholding from wages must be followed when withholding from income other than wages.
When attempting to withhold income from Worker's Compensation, the DSS-4630 document must be forwarded by certified mail (return receipt requested) to the insurance carrier, not the Industrial Commission. See Workers’ Compensation Withholding.
The Social Security Administration (SSA) pays benefits to individuals (beneficiaries) who have earned credits for working, have applied for SSA services, and are determined by SSA to be disabled or retired. Family members of retired, disabled, or deceased wage earners (EX: children, spouses, or widows/widowers) can also receive benefits if they meet SSA's criteria for such benefits.
The interception of Unemployment Insurance Benefits (UIB) is another means of collecting current child support and arrearages. ACTS can identify, track, and process cases with noncustodial parents (NCPs) who are receiving unemployment compensation. UIB withholding is accomplished in much the same way as withholding from income other than wages.
The UIB withholding process begins during the automated Locate process when the interface between ACTS and the Division of Employment Security (DES) makes a successful match between an NCP in ACTS and an individual in the DES database. This matching process also identifies NCPs who are receiving UIB.
ACTS sends a weekly tape to DES that contains the Social Security and MPI numbers of the NCPs who qualify for UIB withholding, along with the amount to be withheld. (The selection criteria for these NCPs appear later in this section.) DES returns a tape to ACTS that contains the Social Security and MPI numbers of the qualifying NCPs, along with the amount withheld and the date of the withholding.
If the NCP has never been under income withholding, CSS sends a Notice of Intent to Income Withhold (DSS-4485). If the NCP has previously been under an order to income withhold, CSS sends a Notice of Transfer of Income Withholding (DSS-4486) for the NCP and notifies DES through the weekly tape.
When the court order is modified or an arrearage balance is paid off, CSS sends an AMENDED Income Withholding For Support (DSS-4702) document to DES. If the new amount of UIB is less than the minimum amount that can be withheld, CSS sends a TERMINATE Income Withholding For Support (DSS-4702) document to DES.
After the interface with DES notifies ACTS that an NCP is receiving UIB, ACTS submits a list of NCPs who meet the criteria for UIB intercept to DES, so that withholding can be initiated. The following criteria must be met for a NCP's case to be submitted for UIB intercept:
The UIB withholding/intercept amount must be a whole dollar amount (no cents). The $2.00 processing fee normally taken by the employer that is doing the withholding is not applicable to UIB intercept.
The MINIMUM UIB withholding/intercept amount is $8.00. The MAXIMUM UIB withholding/intercept amount is EITHER twenty-five percent (25%) of the NCP's weekly UIB benefit (as obtained from the DES unemployment compensation table) OR the total WEEKLY amount of current support and ORDERED arrearages due on ALL of the NCP's cases, whichever is less. (Because the latter amount is based on the NCP's weekly current support and ordered arrearages due, caseworkers must calculate the amount due if the ordered pay frequency is not weekly.)
EX: If the NCP has an ordered pay frequency of $100.00 biweekly, the UIB withholding/intercept amount is $50.00 per week. If the NCP's weekly benefit is less than $200.00, it would be twenty-five percent (25%) of the benefit amount.
DES bills CSS for the cost of intercepting the previous month's UIB payments. This cost is distributed among the counties, based on the number of CSS cases within each county that collected UIB funds.
In situations in which it is impossible to use income withholding procedures, filing a garnishment as provided for under NCGS 110-136 can be the appropriate enforcement remedy. Garnishments can be filed if the following prerequisites are met:
On the first Wednesday of each month, ACTS creates a Workers' Compensation submittal tape and sends it to the Industrial Commission in order to obtain information about NCPs who are receiving Workers' Compensation. ACTS selects all NCPs with a support obligation for their open cases, unless Good Cause is pending for the case, the NCP is a TANF recipient, or the case is a NC Responding Interstate CSS case.
ACTS submits the following information to the Industrial Commission:
When a match is found for a submitted NCP, the Industrial Commission sends back the following information for NCPs who are receiving Workers' Compensation:
If the monthly interface with the Industrial Commission returns NCP data that is different than what is currently stored in ACTS, the appropriate fields in ACTS are updated on the next day and the old claim date is deleted. ACTS notifies the responsible caseworkers to review the data and take any necessary actions.
Based on the data returned from the Industrial Commission, caseworkers might want to check the case periodically for updates or call the insurance company for further information, such as how long the NCP might be out of work and collecting Workers' Compensation.
Caseworkers can initiate withholding on Workers' Compensation income. As with other types of income, GS 110-136.6 governs the limitations to the amount that can be withheld. For more information, see Maximum allowable percentage.
NCGS 148-33.1 establishes provisions for sentencing, quartering, and control of prisoners with Work Release privileges. Prisoners who are employed through the Work Release program are required to surrender their earnings to the Department of Corrections (DOC) for disbursement.
As with other types of wages, child support payments can be withheld from the earnings of NCPs who are participants in a Work Release program. GS 110-136.6 governs the limitations to the amount that can be withheld. For more information, see Maximum allowable percentage.
The DOC interface with ACTS runs every ninety (90) days after the NCP/prisoner's date of incarceration. When an NCP participates in a Work Release program, the DOC interface notifies ACTS, which then notifies all CSS caseworkers with cases containing that NCP as a participant. Upon receiving this notification, caseworkers set the Work Release indicator in ACTS for that NCP, and ACTS generates a Work Release Letter (DSS-4613) at the local office.
Caseworkers can also receive notification of an NCP's Work Release status from the Department of Social Services (DSS) in the county where the custodial parent resides. DSS receives notice from DOC when a prisoner is participating in a Work Release program. Local DSS notifies CSS and requests a copy of the court order for child support from CSS if one is in effect. For TANF cases, DSS then sends the order to the DOC Work Release Accounting Unit. Payments are disbursed by DOC as specified in the court order. Therefore, it might be necessary for the local CSS agency to amend an existing court order to allow enforcement activities to be redirected to CSS and payments to be directed to NCCSCC.
For TANF cases with no order in effect, local DSS advises DOC that the the prisoner's dependents are in need of financial support. Payments in these cases are made directly to the family and counted in the WFFA/TANF budget for eligibility determination purposes. Local CSS should attempt to establish an order for support if at all possible.
If an NPA case is on file, local CSS notifies DOC about whether or not an order for child support is in effect. If an order is in effect, payments are disbursed as specified by the court order. Again, it might be necessary for local CSS to amend the order to allow enforcement activities to be redirected to CSS and payments to be directed to NCCSCC. If no order is in effect, CSS takes the necessary and appropriate actions to establish an order for child support.
If an NCP is incarcerated and is not on Work Release, all of the NCP’s CSS cases must be classified as unworkable until the NCP is released.
DOC deducts the cost of a prisoner's upkeep from his/her earnings and also retains a portion of the prisoner's earnings in order to accumulate a reasonable sum that is paid to the prisoner upon parole or discharge from prison. The remaining balance of any earnings can be disbursed according to the following priority:
For questions or clarification on any of the policy contained in these manuals, please contact your local county office.