March 26, 2008

Michigan has become the first state in the nation to receive electronically-transmitted child support payments from the Social Security Administration.

Beginning in January 2008, the federal agency joined thousands of other employers that send child support payments collected from employees' payroll by electronic means.

"Converting these paper payments to totally electronic transactions will result in savings for the state of Michigan and for the federal government," said Marilyn Stephen, director of the Office of Child Support.

Electronic transactions save money because they are less costly than paper submission and error rates decrease. Employers have several methods to pay electronically, all of which save time and labor.

"We see employers as our partners in the collection of child support," Stephen said. "Electronic receipting makes the process faster and more efficient for everyone."

The Social Security Administration's collection payment is the single largest electronic file ever received by the child support program. Michigan's large automakers also submit collections electronically, leading the electronic payment trend. Michigan now receives about 46 percent of all child support payments through electronic transactions.

If you are an employer and would like to know more about electronic receipting of child support payments please call 1-800-817-0805.

For more information about the Child Support Program, please go to www.michigan.gov/childsupport