Electronic Reporting of Terminated Employees to OCSE Coming Soon

Author: Rena Pirsos, XpertHR Legal Editor

April 16, 2014

An employer sharing information electronically with the federal Office of Child Support Enforcement (OCSE) will have additional notification options soon thanks to a new application. Employers collect over 70 percent of all child support through income withholding orders (IWOs) issued to employees, according to the OCSE. Currently (i.e., as of February 18, 2014) 31 states send electronic income withholding orders (e-IWOs), rather than paper orders, to employers that have implemented the OCSE's e-IWO process. Beginning this May, a new application on OCSE's portal called "eTerm" will enable an employer to electronically notify the other 23 states (and US territories) that do not yet send e-IWOs when the employment of an employee subject to an IWO has ended using the existing e-IWO process.

Use of the e-IWO permits child support information, and information about noncustodial parents, to be shared electronically between a state, a child support agency and an employer in a secure and standardized way.

The following types of information can be shared:

  • New or updated order information;
  • Notification that an order has been terminated;
  • Notification that a noncustodial parent's employment has ended;
  • Notification that the employer should make lump sum payments; and
  • Notification to the employer by child support enforcement agencies that remittances were received.

OCSE worked with employers and states to develop eTerm. By using the portal, employers will be able to provide employee termination information either by entering each employee's information one by one, or in batches, through file uploads. After employers provide "eTerms," OCSE generates an email to the relevant state child support agency informing it that termination information is available on the portal. States can view and download the eTerms, update their systems and take the necessary next action in a timely manner.

OCSE encourages employers to participate in e-IWO, which is free of cost. An employer that wishes to do so can view and download the technical requirements involved, as well as relevant contact information, on the OCSE website. More information regarding eTerm is available by contacting Robyn Large at robyn.large@acf.hhs.gov.