Employer Frequently Asked Questions

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MICHIGAN CHILD SUPPORT PROGRAM EMPLOYER FREQUENTLY

ASKED QUESTIONS (FAQs)

Employers and other sources of income are important partners in the child support program. The

Michigan Office of Child Support thanks you for helping ensure children receive the support they

deserve. We recognize your responsibilities can be challenging and we are here to support you as

much as possible.

Thank you!

These FAQs are a supplement to the Michigan Child Support Program Quick Reference Guide for

Employers – DHS-Pub-95, available online:

www.mfia.state.mi.us/ChildSupport/policy/Documents/DHS-Pub-95.pdf. The FAQs provide

background information for the required employer actions and timeframes that are listed in the guide.

Refer to the guide for the list of required employer actions and timeframes. A list of acronyms used in

this document is included in Section G.

Sections

A. General Information ..................................................................................................................... 1

B. New Hire Reporting ...................................................................................................................... 2

C. Verification of Employment, Income and Health Coverage ..................................................... 3

D. Income Withholding for Support Notice .................................................................................... 3

E. National Medical Support Notice (NMSN) ................................................................................ 12

F. Employment Terminations ........................................................................................................ 16

G. Acronyms Used in This Document........................................................................................... 17

A. General Information

1. Who should I contact if I need additional information or assistance?

 Policy or General Operations:

Contacts for all states and territories are listed on the federal Office of Child Support

Enforcement’s (OCSE’s) Employers page: www.acf.hhs.gov/programs/css/employers

under State Contacts and Program Requirements.

 New Hire Reporting:

Visit the Michigan New Hires Operation Center’s website: www.mi-newhire.com, or

contact the New Hires Operations Center at 800-524-9846.

This publication uses the term “employer” throughout, and the intended audience is employers. However, many of the

responsibilities, questions, and answers are also applicable to health plan administrators and sources of income that are

not employers.

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 Income withholding notices (IWNs),

National Medical Support Notices (NMSNs),

or requests for verification of employment, income, and/or health coverage:

Contact the issuer or person/office that sent the notice or request. The issuer’s contact

information is provided on the notice or request.

In Michigan, the child support agency that issues IWNs and NMSNs is the Friend of the

Court (FOC) office. A list of all county FOC offices’ Interactive Voice Response phone

numbers is available on the Michigan Department of Health and Human Services

(MDHHS) child support website: www.michigan.gov/ChildSupport/ (under Quick Links,

click County Friend of the Court Contact Information).

 Payments:

Visit the Michigan State Disbursement Unit (MiSDU) website: www.misdu.com, or call

the MiSDU Employer Assistance Line at 800-817-0805.

 Lump-Sum Reporting:

Contact the Office of Child Support (OCS) Central Operations at 866-540-0008 (when

prompted, say “Employer Bonus”).

B. New Hire Reporting

Federal legislation requires employers to report information about newly hired or rehired

employees to the State Directory of New Hires of the state in which the employee works.

Employers with employees in multiple states can report to one state by registering with OCSE as

a multi-state employer. Federal government employers report directly to the National Directory of

New Hires.

A newly hired employee is an employee who has not previously been employed by

the employer, or was previously employed by the employer but has been separated from the

prior employment for at least 60 consecutive days (also called a rehire).

You can find more

information about new hire reporting at: www.mi-newhire.com.

2. How do states use new hire information?

Child support agencies use new hire information to locate parents, establish support orders

or enforce existing support orders. Additionally, new hire reporting allows each state to

cross-match new hire data against its active public assistance, workers’ compensation and

unemployment insurance claimant files. In some cases, this leads to either stopping or

recovering improper or fraudulent benefit payments.

An IWN is the notice sent to a source of income, directing it to withhold income in accordance with a court’s support

order. Ref: Section D for more information on IWNs.

A NMSN is a notice to employers to enroll an employee’s dependents in the employer’s health coverage. Ref: Section E

for more information on NMSNs.

The MiSDU is Michigan’s designated site to which employers send withheld child support payments to be processed for

Michigan cases.

Social Security Act Section 453A

Social Security Act Section 453A(b)(1)(C) directs federal government employers to report directly to the National

Directory of New Hires.

Trade Adjustment Assistance Extension Act of 2011 (Public Law 112-40) and Section 453A(a)(2) of the Social Security

Act

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C. Verification of Employment, Income and Health Coverage

Employers are required to respond to requests (or subpoenas) to verify income/employment for

an employee who was employed within three years before the date of the request (or

subpoena).

Employers may be asked to provide the company’s name, contact information,

address(es), and Federal Employer Identification Number (FEIN) as well as the employee’s

status, wages/income, Social Security number, date of birth, address, health coverage, disability

or workers’ compensation information, etc. Michigan child support agency forms/letters for these

types of requests include the:

 Employer’s Disclosure of Income and Health Insurance Information (FEN305, FOC22);

 Employer’s Disclosure of Health Insurance Information (FEN306);

 Employment Status Disclosure (FEN307, FOC22b, RNMFOC22);

 Employer’s Verification of Income (2030); and

 Employer’s Verification of Income and Health Insurance Information (2031).

D. Income Withholding for Support Notice

Federal

and state

laws require income withholding for court-ordered support obligations. A

form titled Income Withholding for Support (also known as an income withholding notice or IWN)

may be sent to an employer by a child support agency, an individual, a private collection agency

or an attorney. The IWN directs an employer or other source of income to withhold income in

accordance with a court’s support order. Many employers refer to this notice as an income

withholding order or IWO. However, in Michigan, the FOC issues this form as a notice of the

underlying income withholding order or the income withholding provisions in the underlying

support order.

Employers may receive and respond to IWNs electronically from states by participating in the

federal Electronic Income Withholding Order (e-IWO) Portal. For more information, refer to the

Electronic Income Withholding Orders (E-IWO) page on OCSE’s Employer Services website at:

www.acf.hhs.gov/programs/css/employers/e-iwo. Employers may also use the e-IWO Portal to

report employment terminations and lump-sum income.

3. How will I be informed that I have to start withholding child support from an

employee’s income?

You will receive an IWN.

You can view an example of an IWN at:

www.mfia.state.mi.us/ChildSupport/policy/Documents/FEN058.doc

Michigan Compiled Law (MCL) 400.234 and MCL 552.518

Section 466 of the Social Security Act and 45 Code of Federal Regulations (CFR) 303.100

MCL 552.604 and MCL 552.607

The FOC issues three versions of the Income Withholding for Support form. These versions are each identified with a

specific form identifier in the bottom-left corner: the MiCSES FEN058 is used for initiating and amending withholding, the

MiCSES FEN58A is used for one-time lump-sum withholding, and the MiCSES FEN58D is used for ending withholding.

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4. Do I have to tell the employee when I receive an IWN?

The FOC sends a copy of the IWN to the employee at the same time the IWN is sent to you.

However, you may need to provide a copy to the employee if (s)he works in a state other

than the state that issued the IWN, or if there is a checkmark by the last sentence in the

IWN’s “Remittance Information” section. (The sentence states: “If checked, the

employer/income withholder must provide a copy of this form to the employee/obligor.”)

5. Can I terminate or refuse to hire individuals who have withholding against their

income?

No. Michigan law states that an employer must not use an IWN as a reason for refusing to

employ, discharging, taking disciplinary action against, or imposing a penalty against a child

support payer.

If you violate this statute, you may be convicted of a misdemeanor, may be

required to pay a fine of up to $500, and may be required to pay restitution to the employee.

6. What will happen if I don’t honor the IWN for support?

If you do not withhold income for support as specified in the IWN, you can be held liable for

support payments you knowingly or intentionally failed to withhold, beginning with the first

payroll period that occurred seven days after the date of the notice.

A court may also hold

you in contempt, which may result in a fine or a judgment against you.

7. May I charge a fee to the employee to help defray the administrative costs of the

withholding? If yes, how much may I charge?

Yes, Michigan law allows employers to charge an employee whose principal place of

employment is Michigan a withholding fee each time the employer withholds support in

response to an IWN.

If you send support payments electronically, you may charge the employee $1 each time a

payment is withheld, but may not exceed $2 per month. If you send support payments

through non-electronic means, you may charge the employee $2 each time a payment is

withheld, but may not exceed $4 per month.

You will retain this fee and must not send it to the MiSDU. The MiSDU or FOC will not collect

the withholding fee from the employee and will not pay the withholding fee to you.

If the employee’s principal place of employment is not Michigan, follow the law of the state of

the employee’s principal place of employment.

MCL 552.623; The child support payer is the parent obligated to pay child support and may also be referred to as the

“obligor” or “non-custodial parent.”

MCL 552.611 and MCL 552.611a(2)

MCL 552.613

MCL 552.623

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8. Does child support take priority over other income withholdings or garnishments?

Yes. Child support withholdings take priority over any other legal process carried out under

state law against the same income,

including state tax levies and garnishments.

This

means that support must be withheld from disposable earnings

before deductions for

garnishments are taken, even if the garnishments were served first. The only exception is if

you receive a federal tax levy before the IWN.

9. What do I do if my pay periods are not the same frequency as the support order?

Michigan law requires that all support orders be stated in monthly amounts payable on the

first of each month in advance.

To assist employers that pay employees more frequently

than once a month, the IWN provides withholding amounts for monthly, semi-monthly, bi-

weekly and weekly payroll periods. These amounts are calculated based on conversion

formulas provided in the Michigan Child Support Formula.

If your pay periods are more

frequent than monthly, refer to the amount indicated on the IWN that corresponds to your

payroll period.

10. Aside from the withholding amount listed on the IWN, is there any other limit to the

amount that can be withheld? If so, how do I figure that amount?

Yes, there is a limit to the amount that can be withheld for employees. However, Michigan

law has no limit for non-employee/non-earning income.

The total amount allowed to be withheld from any employee’s earnings is limited according

to the law of the state of the employee’s principal place of employment. Some states follow

the federal Consumer Credit Protection Act (CCPA)

limits, while other states have limits

that are lower than the CCPA limits. The CCPA does not provide a withholding limit for non-

employees such as self-employed individuals or independent contractors who receive

income that does not meet the CCPA definition of “earnings.”

In Michigan, the maximum amount that can be withheld for all IWNs and NMSNs (i.e.,

support and the employee’s contribution for the child(ren)’s health coverage that you are

required to withhold as a result of a NMSN)

is 50 percent of the employee’s disposable

earnings. This is true even if the employee has multiple withholding orders/notices (i.e.,

multiple IWNs and/or NMSNs).

Refer to Question 11 for a definition of “disposable

earnings.”

MCL 552.611

MCL 600.4012

Ref: Questions 10-12 for more information.

26 United States Code (USC) 6334

MCL 552.605c

MCL 552.605c; Ref: Michigan Child Support Formula.

The federal CCPA identifies the maximum total withholding amount allowed to be withheld from any employee’s

earnings. The limits provided in the CCPA for support (IWN) and health coverage withholding (NMSN) are from 50 to 65

percent of the employee’s disposable earnings.

Ref: Section E for information about NMSNs.

MCL 552.608, MCL 552.609, MCL 552.611a, and MCL 552.626b

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To correctly calculate the maximum allowed withholding, follow these steps:

a. Determine the disposable earnings for the pay period and multiply that by 50 percent to

determine the maximum amount allowed to be withheld.

b. Compare the maximum amount from Step a to the total IWN withholding amount and

the employee’s contribution for the child(ren)’s health coverage, and send an amount as

follows:

1) If the maximum amount is more than the IWN withholding amount plus the

employee’s contribution for the child(ren)’s health coverage, send the amount

specified on the IWN to the MiSDU. Also, pay the required withholding for the

child(ren)’s health coverage to the health plan administrator; or

2) If the maximum amount is less than the total amount specified on the IWN, send

the entire maximum amount to the MiSDU and do not withhold the employee’s

contribution for the child(ren)’s health coverage required by the NMSN; or

3) If the maximum amount is more than the IWN withholding amount but less than the

amount specified on the IWN plus the employee’s contribution for the child(ren)’s

health coverage, send the IWN withholding amount to the MiSDU. The employee’s

contribution for the child(ren)’s health coverage may only be withheld and sent to

the health plan administrator if the entire employee contribution for the child(ren)’s

health coverage can be withheld.

Note: The NMSN may include a court-ordered limit for “reasonable cost” stated as a

specific dollar amount or a percentage of gross income. While the withholding

amount for the IWN plus the employee’s contribution for the child(ren)’s health

coverage may be within the overall 50 percent limit, the court-ordered

“reasonable cost” limit may prevent enrollment of the child(ren) in health

coverage or withholding the employee’s contribution for the child(ren)’s health

coverage.

If you are unsure of the correct amount to send, contact the issuer of the IWN.

11. What are disposable earnings?

“Disposable earnings” means “that part of the earnings of any individual remaining after the

deduction from those earnings of any amounts required by law to be withheld.”

These

mandatory deductions include federal, state and local income taxes; Social Security taxes;

unemployment insurance; workers’ compensation insurance; state employee retirement

deductions; and other deductions determined by federal and state law. Mandatory

deductions do not include voluntary payroll deductions such as contributions for 401(k)

plans, flexible spending accounts, charitable organizations, etc.

These steps apply only to situations where all the notices (i.e., IWNs and NMSNs) received are from a Michigan FOC or

several Michigan FOC offices. Ref: Question 12 for calculation directions if there are multiple notices and at least one

notice is from a state other than Michigan.

15 USC 1672

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Stated as a general formula:

“Disposable earnings” equals gross “earnings” minus mandatory deductions.

If the employee has voluntarily elected to have a tax-deferred deduction taken, such as an

employee contribution to a 401(k), you must first subtract the tax-deferred amount for the

purpose of calculating the amount of taxes to be withheld. However, the tax-deferred amount

must be added back into the earnings before calculating the maximum amount of child

support to be deducted, because child support must be satisfied before any deferment.

12. How should I calculate the amount to be withheld if the employee has more than one

IWN and/or NMSN?

If you have multiple IWNs and/or NMSNs for an employee who works in Michigan, you must

comply with all of the IWNs and NMSNs. However, the total amount withheld from the

employee's income must not exceed 50 percent

of his/her disposable earnings.

To calculate the amount to be withheld when the employee has more than one income

withholding, do the following:

a. Determine the disposable earnings for the pay period and multiply that by 50 percent to

determine the maximum amount allowed to be withheld. If the disposable earnings

amount is enough to cover all orders and is within the limit, withhold the full amount for

all orders.

b. If the disposable earnings amount is not enough to cover all orders, withhold as follows

depending on whether all income withholding orders were issued by Michigan issuer:

1) If all orders to withhold income are from Michigan and the total amount to withhold

for current and past-due support exceeds 50 percent of the employee’s disposable

earnings, withhold an amount equal to 50 percent of his/her disposable earnings.

Send this amount to the MiSDU.

2) If one or more of the orders to withhold income are from another state, give priority

to amounts designated in each notice as current support followed by past-due

support (arrears).

Allocate/prorate the amounts as follows:

a) Prorate the current withholding amounts across all income withholdings (see

the “Current Support” discussion further below); and

b) Prorate the past-due support/arrears withholding amounts across all income

withholdings (see the “Past-Due Support/Arrears” discussion further below).

If the employee’s principal place of employment is outside of Michigan, different withholding limitations may apply.

MCL 552.608, MCL 552.611a, MCL 552.626b, and MCL 552.1501a

“Arrearage” or “arrears” are past-due, unpaid obligations (e.g., support) owed by the parent. If the parent has

arrearages, (s)he is said to be “in arrears.”

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Note: Depending on your payroll period and how each notice lists the amounts

for each withholding category (e.g., current child support, past-due child

support), you might need to convert a specific withholding category

amount to a monthly or non-monthly amount for the purpose of

prioritizing and allocating.

 To determine a weekly amount, divide a monthly amount by 4.35

(multiply a weekly amount by 4.35 for the corresponding monthly

amount); or

 To determine a biweekly amount, divide a monthly amount by 2.175

(multiply a biweekly amount by 2.175 for the corresponding monthly

amount).

c. Regardless of whether all orders are issued by Michigan, if the total amounts withheld

or allocated for current and past-due support do not exceed 50 percent of the

employee’s disposable earnings or the amount or percentage limitation specified on the

NMSN, allocate the remaining disposable earnings to the employee’s contribution for

health coverage for the child(ren) specified in the NMSN. If the employee does not have

enough remaining disposable earnings to withhold for the employee’s contribution for

the child(ren)’s health coverage, or if the employee’s contribution for the child(ren)’s

health coverage exceeds the amount or percentage specified on the NMSN, then the

limit has been met and you cannot withhold the employee’s contribution for health

coverage. Employers are not required to pay the employee’s contribution for health

coverage.

Current Support

If the disposable earnings amount is not sufficient to cover all of the current support due

under multiple notices from multiple states, you must prorate the current support across all

IWNs:

 Add the current support withholding amounts for all IWNs, calculating the total current

support withholding amount due;

 Divide the current support withholding amount due in each order by the total current

support withholding amount due to determine each IWN’s percentage share; and

 Multiply the percentage share for each IWN by the amount of disposable earnings

allowed to be withheld under the 50 percent limit.

“Current support” includes the total of all amounts listed on the IWN as “current child support,” “current cash medical

support” and “spousal support.”

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Example:

The employee has three IWNs:

IWN 1 (issued by Michigan) = $300 current support, $200 past-due support (arrears),

per month.

IWN 2 (issued by State X) = $150 current support, $0 arrears, per month.

IWN 3 (issued by State Y) = $200 current support, $150 arrears, per month.

Total = $650 current support, $350 in arrears, per month.

The employee makes $1,000 in monthly disposable earnings. Therefore, the maximum

amount of the employee’s disposable earnings allowed to be withheld is $500 ($1,000 x

50%). Because the total amount on the IWNs for support and arrears ($650 + $350 =

$1,000) is higher than the withholding amount allowed under the 50 percent limit

($1,000 > $500), the employer is held to the 50 percent limitation.

The total amount of current support is $650 and the employer is able to deduct only

$500. So, the employer must prorate (i.e., determine the percentage of) current support

that each IWN has:

IWN 1 = $300 / $650 = 46%

IWN 2 = $150 / $650 = 23%

IWN 3 = $200 / $650 = 31%

The employer must then multiply each IWN’s percentage of current support by the

amount of disposable earnings available within the limit to determine how much each

IWN will receive:

IWN 1 = 46% x $500 = $230

IWN 2 = 23% x $500 = $115

IWN 3 = 31% x $500 = $155

The employer will send $230 to the MiSDU, $115 to State X, and $155 to State Y.

Past-Due Support/Arrears

If the disposable earnings amount remaining within the allowable limit after all current

support is paid is not sufficient to cover all arrears withholdings for multiple notices from

multiple states, prorate among the IWNs in the same fashion as for current support, but use

the arrears withholding amounts instead of the current withholding amounts.

State X and State Y are states other than Michigan.

“Arrears” includes the total of all amounts listed on the IWN as “past-due child support,” “past-due cash medical

support,” “past-due spousal support,” and “other.”

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13. When do I need to send the payment to the MiSDU?

If the employee’s principal place of employment is in Michigan, you must mail payments to

the address on the IWN or submit them electronically within three working days after the

date of withholding. Otherwise, follow the law of the state of the employee’s principal place

of employment.

14. What information do I need to submit with my employee support payments to the

MiSDU?

You must include the following information:

 Employee name;

 Employee Social Security number (format: 999-99-9999);

 Michigan 10-digit docket/court order number, which is noted as the Order ID (Order

Identifier) on the IWN (format: 9999999999);

 Michigan nine-digit case number, which is noted as the CSE Agency Case ID (CSE

Agency Case Identifier) and Remittance ID on the IWN (format: 999999999);

 Amount withheld;

 Date withheld; and

 Employer FEIN (format: 99-9999999).

Failure to provide all of the necessary information could result in the payment being returned

or marked as unidentified.

15. Can I combine all the withholdings in one pay period for all employees and send one

payment?

Yes. You can combine all withholdings going to the MiSDU into one payment. You may

submit payments by check, cashier’s check, money order, credit card/debit card, Electronic

Funds Transfer (EFT), Automated Clearing House or direct deposit. The withholdings must

include identifying information for each employee to ensure that payments are not delayed.

16. What should I do if, after I have received an IWN, an employee tells me that the

amount to be deducted is wrong, or wants to make voluntary payments for child

support instead of through income withholding?

The employee needs to direct this request to the FOC office identified on the IWN. If the

order/notice was not sent by the FOC office, the employee must contact the issuer of the

IWN.

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17. If I have withheld the required amount for the month and my employee receives

additional income such as a bonus or a commission check, do I have to deduct from

this too?

Employee lump-sum income, such as a bonus or commission, may qualify for child support

withholding. Lump-sum reporting contact information is included on Michigan IWNs issued

by the FOC. If the FOC issued the IWN and you are about to pay an employee a lump sum,

contact OCS Central Operations (preferably one or two weeks before the pay date) by

phone at 866-540-0008 (when prompted, say “Employer Bonus”), by email at: MDHHS-

[email protected], or by fax at 517-335-3030. If the FOC is not the issuer

of the IWN, contact the issuer.

Additional instructions for employers are included in the Instructions for Withholding and

Remitting Support From Employee/Obligor Lump-Sum Payments (DHS-1425). The DHS-

1425 is available online: www.mfia.state.mi.us/ChildSupport/policy/Documents/DHS-

1425.doc.

After you contact OCS Central Operations, you will receive a report that will identify the

employees with income withholding orders, the arrearage amount for which the lump-sum

income is subject to withholding and the percentage of a bonus you must withhold (identified

as “chargeable bonus %” on the report). An example of the report is below.

Sample Lump-Sum Report

Employee

Name

SSN

IV-D

Case

Docket #

Withhold 50% of

the NET not to

exceed this

amount

Chargeable

Bonus %

County

Code

Name 1 ***-**-**** ********* ********** $100.00 0 82

Name 2 ***-**-**** ********* ********** $500.00 25 82

You can also electronically report lump-sum income to Michigan via OCSE’s E-IWO Portal.

18. Are independent contractors (i.e., those receiving 1099 income) subject to income

withholding?

Yes, under the definitions of “income” and “source of income” in Michigan law, money paid

to an independent contractor is subject to income withholding.

19. How do I know when to stop the withholding?

The withholding will remain in effect until the FOC notifies you to stop withholding.

You

must not stop the withholding based on an employee’s request or because the employee’s

or your calculations indicate the arrears are paid. Failure to withhold may result in your

MCL 552.602(n) and MCL 552.602(cc)

MCL 552.611

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liability for the payments not withheld. If the employee’s employment is discontinued or

interrupted for a period of 14 or more days, you must promptly notify the FOC office.

If the

employee returns to work, you must reinstate the withholding unless otherwise notified by

the issuer of the IWN.

20. What should I do if the employee tells me that his/her parental rights were terminated

and (s)he asks me to stop the income withholding?

The termination of a parent’s rights does not terminate the parent’s obligation to support

his/her child unless a court specifically modifies or terminates that support obligation.

The

IWN will remain in effect, and you must continue to withhold income until you are notified by

the FOC or another issuer to stop withholding.

E. National Medical Support Notice (NMSN)

Federal regulations require state child support enforcement agencies under Title IV, Part D of the

Social Security Act to enforce the health coverage provision in a child support order.

Federal

regulations also require these agencies to use the NMSN to enforce health coverage where

appropriate.

The design and intent of the NMSN is to increase access to health coverage for

children by using a standard form when issuing a medical support notice to employers. The FOC

office issues a NMSN to an employer for each parent who is ordered to provide health coverage

for his/her children.

21. What is a National Medical Support Notice (NMSN)?

A NMSN is a “qualified medical child support order” used to enforce the health coverage

provision of a child support order. It requires the employer/health plan administrator to enroll

the child(ren) listed on the NMSN in health coverage plans available to the named

employee. Michigan FOC offices send employers both the federal National Medical Support

Notice (FEN302) and a Michigan-specific addendum called the Addendum to the National

Medical Support Notice (FEN302A).

22. How will I be informed that I must enroll the child(ren) in a health coverage plan and

begin withholding for health coverage?

You will receive a NMSN. You must respond appropriately and take the necessary action as

indicated on the NMSN and its Addendum.

23. Do I need to tell the employee when I receive a NMSN?

FOCs send an informational letter about the NMSN to the employee and the other

parent/party on the support case at the same time that the NMSN is sent to the employer.

This letter is called the Parent Health Care Coverage Explanation Sheet (FEN303). It

informs the parents/parties that the NMSN has been sent to the employer. The employer

may need to contact the employee, as indicated in the instructions of the NMSN. Also, the

MCL 552.614(2)

You are also required to report the employee as a new hire if (s)he is rehired. Ref: Section B, “New Hire Reporting,” for

more information.

In re Beck, 488 Mich 6 (2010)

45 CFR 303.32(a)

45 CFR 303.32(c)(1)

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plan administrator must provide the custodial parent/party on the support case with a

description of the coverage available.

The NMSN includes a mailing address(es) so the

plan administrator can send a notice of health coverage information to the custodial

parent/party. However, you do not need to provide a copy of the NMSN to the employee.

The employer may also need to contact the FOC and/or the parent/party on the support

case who is not responsible for maintaining health coverage if there are multiple choices or

options available for health coverage. The FOC and/or the other parent/party must choose

the most appropriate option. (Ref: Question 30)

24. How may I obtain a copy of the NMSN?

Blank copies of Michigan’s version of the NMSN (FEN302) as well as Michigan’s Addendum

to the NMSN (FEN302A) can be viewed along with the Michigan IV-D Child Support Manual

online at: www.mfia.state.mi.us/ChildSupport/policy/Documents/FEN302.pdf

25. How long after receipt does the NMSN take effect?

a. Within 20 business days of the date of the NMSN, an employer must:

1) Complete Part A – Employer Response of the NMSN;

2) Return Part A – Employer Response to the issuing FOC; and

3) If health coverage is available, forward Part B – Plan Administrator Response

and the Addendum to the health plan administrator (the employer may also be the

health plan administrator).

b. Within 40 business days of the date of the NMSN, the plan administrator must:

1) Enroll the child(ren) in the employer’s health coverage plan(s) without regard to any

enrollment period restrictions;

2) Complete Part B and the Addendum to the National Medical Support Notice (or a

comparable form). Return them to the employer and to the issuing FOC; and

3) Forward a copy of the child(ren)’s health coverage to the custodial parent/party.

c. Upon receiving Part B of the NMSN from the plan administrator, the employer must:

1) Begin withholding; or

2) If the amount exceeds the withholding limits, return Part A of the NMSN to the

issuing FOC and notify the plan administrator to remove the dependents from

health coverage immediately.

29 USC 1169(a)(5)(C)(ii)(II)

Ref: Question 32 for more information about withholding limits.

Page 14

26. Are employers and plan administrators required to comply with the NMSN?

Yes. Federal law requires all employers and plan administrators who offer dependent

coverage to make health coverage available to children of employees who are eligible and

qualify for such coverage pursuant to a medical child support order.

You do not need to

withhold for health coverage if you do not offer health coverage to your employees and their

families.

27. What should I do if a union provides health coverage?

You should consider the union the plan administrator and forward Part B of the NMSN (and

the Addendum) to the union within 20 days, unless you’ve checked Box 1, 2, 3, 4, or 5 in the

“Employer Response” (Part A) of the NMSN. The union, like a plan administrator, must

respond to the employer and the FOC within 40 days.

28. If I receive a NMSN, but the employee declares that (s)he is providing health coverage

through other means, what should I do?

You must comply with the NMSN, continue to withhold employee contributions, and not

disenroll the child(ren) until:

 You are notified by the issuing FOC that the NMSN is terminated; or

 You are provided with satisfactory written evidence that the order referred to in the

NMSN is no longer in effect or the child(ren) are/will be enrolled in comparable

coverage that is effective before disenrollment from your plan.

The employee may contact the issuing FOC to contest the NMSN as a mistake of fact.

29. What happens if the employee does not want health coverage for himself/herself, but

is ordered to put the child(ren) on the health coverage plan the employer offers?

The child(ren) subject to the order must be enrolled in a health coverage plan that is

available to the employee even if the employee is not enrolled. If it is possible to enroll the

child(ren) in the plan without the employee, do so. However, most policies require that the

employee be on the plan also. In that situation, the employee has no choice but to be

included in the plan so the child(ren) are covered as required by the court order.

30. What happens if there are multiple health plans available to the employee and his/her

dependents? Which plan should the administrator enroll them in?

Plan selection criteria are as follows:

 Employee already enrolled – If the employee is already enrolled in a plan that offers

dependent coverage, the administrator will select that plan.

 Employee not already enrolled– If the employee is not already enrolled in a plan and

there is only one plan that offers dependent coverage, the administrator will select that

plan. If more than one plan offers dependent coverage, the plan administrator must

29 USC 1169(a)

Page 15

enroll the dependents and the employee (if necessary) in the plan selected by the

issuing FOC. The issuing FOC will consult with the other parent/party to select a plan.

The plan administrator can contact the issuing agency to determine what plan should be

selected. If the issuing FOC does not respond within 20 days, the plan administrator will

enroll the dependents in the default plan.

31. Will the health coverage provider allow me to enroll the child(ren) outside an open

enrollment period?

The NMSN constitutes a “significant life change” and a qualifying event for enrollment. The

health coverage provider must accept enrollment of the child(ren) at any time without regard

to any enrollment period restrictions.

Refer health coverage provider questions or disputes

regarding enrollment to the FOC office that issued the NMSN.

32. How much can I withhold for health coverage?

Withholding limitations apply if the employee’s IWN amount(s) and the employee’s

contribution for the child(ren)’s health coverage exceed 50 percent of the employee’s

disposable earnings.

The NMSN will specify a reasonable cost percentage or dollar amount that also limits the

amount you can withhold for health coverage. If the NMSN does not, employers should

contact the FOC for the reasonable cost. The reasonable cost percentage or amount is only

applicable to the cost of adding the child(ren) to existing coverage or the difference in cost

between self-only and family coverage.

Example:

The employee has:

 Gross earnings of $2,500 biweekly;

 Disposable earnings of $1,750 biweekly;

 A NMSN with a reasonable cost of 5 percent of gross income;

 Health coverage that is available at a biweekly cost of $175 for family coverage or $65 for

self-only coverage; and

 An IWN with a total biweekly withholding of $600 ($500 in current support and $100 in

past-due support/arrears);

In this scenario, the difference between self-only and family coverage is $110 ($175 - $65),

which does not exceed the reasonable cost limit of $125 ($2,500 x 0.05). The total biweekly

withholding amount for the IWN and NMSN is $710 ($600 + $110) and is less than the 50

percent of disposable income limit, which is $875 ($1,750 x 0.5).

If employees disagree with the enrollment that is directed through the NMSN, they must

contact their FOC office.

MCL 552.626a, 45 CFR 155.420(b)(2)(v), and 45 CFR 155.420(d)(2)(i)

Ref: Questions 10-12 for more information about withholding limitations.

Page 16

33. I am concerned that the NMSN process will add administrative costs to my business.

May I charge a fee to the employee?

If the employee’s principal place of employment is in Michigan, you may not charge an

administrative fee. Michigan law does not allow you to charge employees fees for

processing the NMSN unless the employer has full, free, and written consent of the

employee, obtained without intimidation or fear of discharge for refusal to permit the

withholding.

Otherwise, follow the law of the state of the employee’s principal place of

employment.

34. When will health coverage withholding stop?

The NMSN will remain in effect until you are notified by the issuing FOC or you receive a

notice regarding any changes. However, even if the FOC sends a Notice Regarding Health

Care Coverage (FEN308) that informs you the NMSN is no longer effective, the employee

may still have a legal obligation to provide health coverage or may wish to voluntarily provide

or continue to provide health coverage for the minor child(ren). Please check with the

employee before terminating health coverage.

35. Is it my responsibility to notify the FOC office if the employee’s contribution to health

coverage increases?

No, it is the employee’s responsibility to inform the FOC office of any change in premiums

and possibly request that his/her support order be modified. However, when coverage

terminates, or if you can no longer withhold the increased employee contribution for health

coverage due to withholding limits, it is your responsibility to notify the FOC office that issued

the NMSN. Also, consider notifying the employee if you cannot withhold per the withholding

limits; the employee is responsible for informing the FOC of a change in circumstance.

36. Our company does not offer group health coverage. Do we have to purchase group

health coverage to comply with the NMSN?

No. If the employee belongs to a class of employees for which you do not offer this

coverage, you are not obligated to provide it for this purpose.

37. What if the child is covered by Medicaid, MiChild, or another publicly provided plan

and I receive a NMSN?

If the employee disagrees with the NMSN or disputes the NMSN with you, refer the

employee to the FOC. You must still comply with the NMSN until the FOC provides further

direction.

F. Employment Terminations

38. What do I do when the employee leaves my employ?

The NMSN and IWN remain in effect and are binding upon the employer until further notice

from the court or the issuer.

MCL 408.477(1)

Page 17

You must promptly notify the FOC or the issuer of the IWN or NMSN in writing when the

employee’s employment/income terminates.

You must provide the FOC or the issuer of the

IWN or NMSN with the employee’s last-known address as well as the name and address of

the employee’s new employer, if known.

The IWN and NMSN both include a section for

you to provide this information and additional information about the employee and employer.

You may electronically report employee terminations to states via the federal e-IWO portal or

the Employer Services web application on the federal Child Support Portal. More information

about the Child Support Portal is available at:

www.acf.hhs.gov/programs/css/resource/employer-services-web-application.

The IWN and NMSN will remain in effect and be binding upon the employer until further

notice from the court or the issuer. Therefore, you are required to keep a record of the IWN

and NMSN and enforce them if the employee who left employment with you returns to work

for you. If the employee hasn’t worked for you in the past 60 days, report the employee as a

new hire and begin withholding. You may contact the FOC to confirm the current status of

the IWN or NMSN.

G. Acronyms Used in This Document

 CCPA – Consumer Credit Protection Act

 CFR – Code of Federal Regulations

 EFT – Electronic Funds Transfer

 e-IWO – Electronic Income Withholding Order

 FEIN – Federal Employer Identification Number

 FOC – Friend of the Court (office in a Michigan county)

 IVR – Interactive Voice Response (telephone system)

 IWN – Income withholding notice

 IWO – Income withholding order

 MCL – Michigan Compiled Law

 MDHHS – Michigan Department of Health and Human Services

 MiSDU – Michigan State Disbursement Unit

 NMSN – National Medical Support Notice

 OCS – Office of Child Support (Michigan)

 OCSE – Office of Child Support Enforcement (federal)

 SSN – Social Security number

 USC – United States Code

The Michigan Department of Health and Human Services (MDHHS) does not discriminate against any individual or group because

of race, religion, age, national origin, color, height, weight, marital status, genetic information, sex, sexual orientation, gender identity

or expression, political beliefs or disability.

MCL 552.614(1)

MCL 552.614(2)

DHS-Pub-96

(

Rev. 11-15

)