Types of child support
A child support order includes two types of support:
Monetary Support - orders child support, spousal support, education support, or child care support.
Medical Support - orders the provision of medical care for dependent children. Medical support frequently asked questions.
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New Hire Reporting
Federal law requires employers to report newly hired or rehired employees to a state directory of new hires. Michigan's directory is administered by the Department of Human Services' Office of Child Support. New hires reported by employers are matched against child support records in the state to help locate parents, establish support orders, or enforce existing support orders.
When new employment is identified through new hire reporting, an income withholding order and a National Medical Support Notice is automatically sent to the employer.
Many employers participate in new hire reporting through an automated New Hire Reporting Web site. The Web site includes general information, frequently asked questions and reporting documents.
Receipt of new hire information allows each state to cross-match this data against its active workers' compensation and unemployment insurance claimant files to determine eligibility, stop payments or recover payments made in error.
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Quarterly Wage Reporting
Michigan law requires that each employer must file a quarterly wage report with the Michigan Unemployment Insurance Agency. The quarterly wage report includes, for each of the employer's employees, the employee's name, social security number, gross wages paid during each quarter, and the name, address, and federal and state employer identification number of the individual's employer.
For additional information on quarterly wage reporting or to file electronic wage reporting, go to the Department of Energy, Labor and Economic Growth (DELEG) Unemployment Insurance Agency Web site.
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Income Withholding Orders
In Michigan, approximately 74% of support payments are made through income withholding. All new and modified child support orders are required to include income withholding, unless both parents and the court agree on other payment methods.
Under income withholding, the monetary and medical support payment is deducted from the non-custodial parent's paycheck in the same manner as taxes, insurance premiums, and other deductions. The employer sends the payments directly to the Michigan State Disbursement Unit (MiSDU).
The Michigan Child Support Enforcement System (MiCSES) will automatically send an income withholding order when a new employer is identified through new hire reporting. The Friend of the Court can also manually send an income withholding order. Federal and state law require employers to honor income withholding orders. An income withholding order can be used to collect both current and past due support (arrearages).
A parent's income from other sources, such as unemployment benefits, social security benefits, independent contracting, worker's compensation claims, and insurance claims are also subject to income withholding.
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National Medical Support Notice
The National Medical Support Notice is the federally required form sent to employers requesting information on the medical insurance available to employees that have a child support order. The National Medical Support Notice also tells the employer how medical support must be handled. Medical support is the part of the child support order that requires medical care for dependent children. Medical support frequently asked questions.
Along with an income withholding order, employers often receive a National Medical Support Notice. Employers and their insurance carriers are required to honor these notices.
Employers and health insurance providers must follow these requirements in responding to the National Medical Support Notice:
- a dependent child must have access to open enrollment;
- a dependent child may not be denied coverage on the grounds that the parents were never married, the dependent child lacked the employee's last name, the dependent child is not claimed on the employee's federal income tax return, or the dependent child does not live with the employee or in the insurer's services area; and
- the employee may not eliminate coverage of the dependent child unless the employee provides written proof that the medical support order is no longer in effect or the dependent child will be enrolled in a comparable health insurance plan.
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Federal and State Tax Refund Offset Program
If the amount of past due support (arrearages) reaches a certain level (threshold), both federal and state tax refunds can be intercepted to pay the past due support.
The past due threshold for state tax refund intercept is $150. The state tax refund intercepts are requested annually in November.
The federal past due threshold is $150 for cases that receive FIP (Family Independence Program), the non-FIP threshold is $500. Federal tax refund intercept requests are submitted throughout the year on a weekly basis.
For both state and federal tax offset the person who owes the support can object based on a mistake of identity or a mistake of fact. In a joint tax return, a spouse may make a claim to retain his or her portion of the refund.
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Lien/Levy
The Friend of the Court or state can initiate a lien/levy process against real or personal property, and/or financial assets for collection of child support.
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License Revocation
Professional licenses, driver's licenses and hunting and fishing licenses can be denied, suspended or revoked for non-payment of child support. License suspension is done by the Friend of the Court.
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Consumer Credit Reporting
As required in federal law, the statewide child support computer system (MiCSES) automatically triggers a report to a consumer credit reporting agency if two months of past due support (arrearages) exist.
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Surcharge
NEW:
Before 2010, surcharge was added to all cases with past due support owed (arrearages). The law changed to stop surcharge during 2010. Beginning in 2011, a judge may order surcharge to be added to a case that has arrearages. If surcharge is ordered by the judge, it will be added to the case every January 1st and July 1st and becomes a part of the total amount of support owed.
The surcharge is a variable rate tied to 5-year United States Treasury Notes, plus 1%. Surcharge assessed under this variable rate will not compound.
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QDRO/EDRO
A Qualified Domestic Relations Order (QDRO) is a support order against a private pension account. An Eligible Domestic Relations Order (EDRO) is a support order against a state or federal government pension plan. A QDRO or EDRO can be issued for current support or past due support (arrearages).
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Show Cause/Bench Warrant
A person who owes support can be ordered to appear before the court to explain to the court why he/she should not be held in contempt for not paying their child support. This is called a show cause hearing.
If the person ordered to appear at a show cause hearing does not show up, a bench warrant for their arrest can be issued. A bench warrant is always accompanied by a bond requiring payment. If the bond is not paid, the person who owes the support can be sent to jail.
Bench warrants are entered into the statewide Michigan Child Support Enforcement System (MiCSES) by the Friend of the Court. MiCSES updates the Law Enforcement Information Network (LEIN) every 15 minutes so that law enforcement is notified of the bench warrant for arrest.
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Felony Nonsupport
If the Friend of the Court determines that a felony warrant is necessary, they can refer the case to the county Prosecutor who may charge the person who owes the support with the crime of felony non-support. In some counties, the case may be sent to the Attorney General for criminal prosecution of felony non-support. Felony non-support charges are generally issued after other child support collection methods have not been successful.
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Child Support Enforcement Laws
Federal Law:
Directory of New Hires (42 USC 653a)
Requirement of statutorily prescribed procedures to improve effectiveness of child support enforcement (42 USC 666)
State Law:
Support and Parenting Time Enforcement Act (Act 295 of 1982, MCL 552.601 et seq)
Uniform Interstate Family Support Act (Act 310 of 1996, MCL 552.1501 et seq)
Michigan Employment Security Act (MCL 421.13)
Office of Child Support Act (Act 174 of 1971, MCL 400.231 et seq)
Friend of the Court Act (Act 294 of 1982, MCL 552.501 et seq)
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