Current through Register 1531, September 27, 2024
(1)
Statement of Purpose;
Effective Date; Outline of Topics.
(a)
Statement of
Purpose. The purpose of 830 CMR 119A.5.1 is to implement M.G.L. c.
119A, § 5 under which the Child Support Enforcement Division of the
Department of Revenue is required to use automated procedures, electronic
processes and computer-driven technology to the maximum extent feasible,
efficient and economical for the receipt of child support payments from
employers. 830 CMR 119A.5.1 explains the procedures prescribed by the
Commissioner for payment of child support by employers through the Child
Support Enforcement Electronic Funds Transfer (EFT) program.
(b)
Effective Date.
830 CMR 119A.5.1 shall take effect on January 1, 2004.
(c)
Outline of
Topics. 830 CMR 119A.5.1 is organized as follows:
1. Statement of Purpose, Effective Date,
Outline of Topics.
2.
Definitions.
3. Child Support EFT
Program Participation.
4. Child
Support Enforcement EFT Program Registration Requirements.
5. Child Support EFT Payment
Requirements.
6. Timely Child
Support EFT Payments.
7. Use of
Payroll Processing Services.
8.
Notification of Errors, Incorrect Information and Changes, Additions and
Deletions of Information.
9.
Penalties.
(2)
Definitions. For the purpose of 830 CMR 119A.5.1, the
following terms have the following meanings, unless the text requires
otherwise:
Automated Clearing House (ACH), any
entity that operates as a clearing house to transmit or receive entries
electronically, pursuant to an agreement with an association that is a member
of the National Automated Clearing House Association (NACHA).
ACH Credit Transaction Method, one of
the national standards of the banking industry to transfer funds electronically
among banks using the Automated Clearing House (ACH) network. In a child
support ACH credit transaction, an employer, through its bank, originates an
entry to credit a designated bank account and to debit its own bank account for
the amount of child support payment.
Child Support Enforcement Division of the
Department of Revenue (DOR), the single state agency for the
Commonwealth responsible for establishing parentage and establishing, modifying
and enforcing child support orders pursuant to Title IV, Part D of the Social
Security Act,
42 U.S.C. §
651
et seq., and M.G.L. c.
119A. The Child Support Enforcement Division is a division contained within the
Department of Revenue.
Child Support Enforcement EFT Program
, payment of child support by the transfer of funds electronically from an
employer's financial institution to the Commonwealth's designated depository
bank, in accordance with 830 CMR 119A.5.1 and procedures prescribed by the
Commissioner.
Commissioner, the Commissioner of
Revenue or the Commissioner's duly authorized representative.
Electronic Funds Transfer (EFT), a
system used to transfer payments or funds electronically; any transfer of funds
(other than a transaction originated by check, draft or similar paper
instrument) that is initiated through an electronic terminal, telephonic
instrument, computer or magnetic tape, to authorize a financial institution to
debit or credit an account.
Employer, as the term is defined in
M.G.L. c. 119A, § 1A.
National Automated Clearing House Association
(NACHA), the association that establishes the standards, rules and
procedures that enable depository financial institutions to exchange ACH
payments on a national basis.
Obligee, an individual to whom support
is owed or in whose favor a support order has been issued or the Commonwealth
if there is an assignment of child support rights pursuant to Title IV, Parts A
and E, or Title XIX of the Social Security Act. See M.G.L. c.
119A, § 2.
(3)
Child Support Enforcement EFT Program Participation.
(a)
Child Support Enforcement EFT
Program in General. Under the Child Support Enforcement EFT
program, certain employers that are required to withhold and remit child
support payments pursuant to M.G.L. c. 119A, § 12(f) must make child
support payments to DOR by the electronic transfer of funds. The Child Support
Enforcement EFT program uses the Automated Clearing House (ACH) credit
transaction method of payment. An employer that participates in the Child
Support Enforcement EFT program transfers funds by instructing its designated
financial institution to credit the Commonwealth's depository bank and to debit
the employer's bank account for the amount of the child support payment.
(b)
Mandatory
Participation.
1.
Employers Required to Withhold and Remit Child Support Payments for
Five or More Employees. As of January 1, 2004, any employer
required to withhold and remit child support payments pursuant to M.G.L. c.
119A, § 12(f) for five or more employees shall make all child support
payments through the Child Support Enforcement EFT program. Once an employer is
registered as a mandatory participant in the Child Support Enforcement EFT
program, the employer may not withdraw from the Child Support Enforcement EFT
program even if the number of employees for whom the employer is required to
withhold and remit child support payments decreases to less than
five.
2.
Other
Employers. Regardless of the number of employees for whom an
employer is required to withhold and remit child support payments, any employer
required to make child support payments to DOR by income withholding pursuant
to M.G.L. c. 119A, § 12(f) with a history of two or more checks returned
for insufficient funds, a history of irregular or untimely payments or other
instances of failure to remit child support payments shall be required to make
all child support payments through the Child Support Enforcement EFT
program.
(c)
Voluntary Participation. Any employer required to
withhold and remit child support payments pursuant to M.G.L. c. 119A, §
12(f) for fewer than five employees may participate in the Child Support
Enforcement EFT program on a voluntary basis. Once an employer is registered as
a voluntary participant, the employer shall remain subject to 830 CMR 119A.5.1
and DOR's procedures established for mandatory participation, except as
provided in 830 CMR 119A.5.1(3)(d)2.
(d)
Waiver and Withdrawal from
Participation. An employer may request a waiver from participation
in the Child Support Enforcement EFT program, as described in 830 CMR
119A.5.1(3)(d)1. and 2.
1.
Mandatory Participants. Any employer required to
participate in the Child Support Enforcement EFT program by 830 CMR 119A.5.1
may request a waiver from participation by writing to the Child Support
Enforcement EFT unit. The Commissioner shall review each request for a waiver
from participation in the Child Support Enforcement EFT program on a case by
case basis to determine if the request for waiver is warranted.
2.
Voluntary
Participants. Withdrawal from participation in the Child Support
Enforcement EFT program will be granted to voluntary participants upon written
request, provided the employer does not meet the requirements of 830 CMR
119A.5.1 for mandatory participation in the Child Support Enforcement EFT
program.
(4)
Child Support Enforcement EFT Program Registration
Requirements.
(a)
Registration. To register for mandatory or voluntary
participation in the Child Support Enforcement EFT program, an employer must
obtain a Massachusetts Child Support EFT Manual (Manual) and submit its
registration with the required identifying information for each employee as set
forth in the Massachusetts Child Support EFT Manual.
(b)
Reconciliation of Identifying
Information. Before making any child support EFT payments, an
employer must ensure that the employer's identifying information for the
employee matches exactly the identifying information for the employee in DOR's
child support enforcement automated data system. The Child Support Enforcement
EFT unit will compare the identifying information submitted by the employer for
each employee with identifying information in DOR's child support enforcement
automated data system. The Child Support Enforcement EFT unit shall notify the
employer if there are any discrepancies between the employer's and DOR's
identifying information and the employer shall cooperate with the Child Support
Enforcement EFT unit to reconcile any discrepancies.
(c)
DOR's Information to
Employer. DOR shall provide to the employer all necessary
information for completing the EFT, such as its financial institution and
account number.
(5)
Child Support EFT Payment Requirements
(a)
Employer's
Obligation. An employer shall take all action necessary to ensure
that child support EFT payments will be credited to the proper child support
account for each employee including, but not limited to, ensuring that the
employer has the capability of creating and successfully transmitting an ACH
file to its financial institution, confirming that its financial institution
has the capability of remitting payments through the ACH network and meeting
all NACHA standards, regulations and requirements.
(b)
Employer's Test Transmission
with its Financial Institution. Before making its first child
support EFT payment, an employer must provide to its financial institution all
relevant information as set forth in the Massachusetts Child Support EFT Manual
and must conduct a test transmission of child support withholding information
with its financial institution.
(c)
Pre-notification Test. Before making a first child
support EFT payment to DOR, an employer's financial institution should conduct
a pre-notification test (pre-note test), which is a banking industry safeguard,
to verify the Commonwealth's routing/transit number and bank account number. A
pre-notification test is a zero-dollar transaction processed at least ten days
before the employer's first child support EFT payment. The Child Support
Enforcement EFT unit shall notify the employer as to whether the pre-note test
was successful or whether any errors occurred in the pre-note test.
(6)
Timely Child
Support EFT Payments.
(a)
Child Support Payment Due Date. All child support EFT
payments must be credited to the Commonwealth's designated bank account by the
statutory payment due date set forth in M.G.L. c. 119A, § 12(f). The Child
Support Enforcement EFT program does not change any existing requirements of
the Commonwealth's child support laws. An employer should determine with its
financial institution when to originate its payment so that it will be timely
paid. If a child support ACH credit payment cannot be timely made due to
circumstances beyond the control of an employer or the employer's financial
institution, the employer must remit the child support payment to DOR by means
other than EFT to ensure timely payment.
(b)
Proof of Child Support
Payment. An employer should obtain from its financial institution
verification that the proper amount of child support payment was transferred
from the employer's account to the Commonwealth's account and that its child
support payment was timely made. The employer has the burden of proof of proper
child support payments.
(7)
Use of Payroll Processing
Services. An employer may use a payroll processing service to
withhold and remit child support payments to DOR. A payroll processing service
is subject to all requirements of 830 CMR 119A.5.1. A payroll processing
service that withholds and remits child support payments on behalf of an
employer for five or more employees shall be a mandatory participant in the
Child Support Enforcement EFT program pursuant to 830 CMR 119A.5.1(3)(b)1. A
payroll processing service that withholds and remits child support payments on
behalf of an employer for fewer than five employees may be a voluntary
participant in the Child Support Enforcement EFT program pursuant to 830 CMR
119A.5.1(3)(b)2.
(8)
Notification of Errors, Incorrect Information and Changes,
Additions and Deletions of Information.
(a)
Notification of Child Support
EFT Payment Errors. If an employer discovers that an error has
been made in a child support EFT payment, the employer must notify the Child
Support Enforcement EFT unit within two business days and must contact its
financial institution for correction procedures. If DOR finds a recurring error
in child support EFT payments, the Child Support Enforcement EFT unit will
notify the employer.
(b)
Incorrect Information. If the Child Support
Enforcement EFT unit notifies an employer that incorrect or incomplete
identifying information for an employee has been submitted with a child support
EFT payment, the employer must submit the correct information with the next
child support EFT payment. If the employer continues to submit incorrect or
incomplete information, the employer may be subject to penalties.
See830 CMR 119A.5.1(9).
(c)
Changes, Additions and
Deletions. Any changes in information (i.e., a
change in an employer's transmitting bank), additions of new employees or
deletions of existing employees must be reported in writing to the Child
Support Enforcement EFT unit within two business days of the change, addition
or deletion.
(9)
Penalties. Any employer required by 830 CMR 119A.5.1
to make child support payments to DOR by EFT who fails, without reasonable
cause, to comply with the requirements of 830 CMR 119A.5.1 may be subject to
penalties pursuant to M.G.L. c. 119A, § 12(f) or any other penalty
authorized by law.
