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Child Support Information for Employers

Michigan State Disbursement Unit (MiSDU) 
New Hire Reporting 
Quarterly Wage Reporting 
Income Withholding for Employees 
Electronic Income Withholding (E-IWO) for child support 
Medical Support 
Employer Payments to MiSDU 
Employer Advisory Committee 
Federal Information for Employers 
Employer Help Line - (800) 817-0805
Michigan Employer Job Aid

Michigan State Disbursement Unit (MiSDU) 

Federal law mandates that each state create a centralized state disbursement unit to collect and distribute child support payments (42 USC 654b). Michigan law (MCL 400.236) was enacted to provide authority for the Michigan State Disbursement Unit (MiSDU) to fulfill this federal requirement. 

The MiSDU provides the single location where all support payments are received and disbursed in Michigan.  The MiSDU processes over $1.6 billion annually and distributes over 90% of the money received within 48 hours.  The rest is held as required by law or to identify the recipient's address. 

Customer Service to employers is a priority for the MiSDU. A toll-free employer assistance line (1-800-817-0805) is available to help all employers communicate with the MiSDU. This number also provides assistance to any employer who wants to take advantage of the cost saving option of making electronic payments.    An informational website is also available at www.misdu.com . 

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New Hire Reporting 

New Hire Reporting Section 453A of the Social Security Act requires employers to report certain information on their newly hired or rehired employees to a designated state agency. 

In Michigan, that agency is the Department of Human Services Office of Child Support (OCS). New hire reports are processed by the Michigan New Hires Operation Center, which is administered by OCS and the Department of Technology, Management and Budget. New hires reported by employers are matched against child support records in the state to help locate parents, establish orders, or enforce existing orders. 

New hire reporting also benefits employers by reducing and preventing fraudulent unemployment and workers' compensation payments. Timely receipt of new hire data allows each state to cross-match this data against its active workers' compensation and unemployment insurance claimant files. States have saved millions of dollars by stopping or recovering erroneous payments identified in these cross-matches.

What's New With New Hire Reporting?

Effective April 21, 2012, employers are required to submit new hire reports for rehired employees who were previously employed but have been separated for 60 consecutive days. This requirement was enacted by Section 253 of the federal Trade Adjustment Assistance Extension Act of 2011 (Pub. L. No. 112-40), which added the definition of a "newly hired employee" (including rehired employees) to Section 453A(a)(2) of the Social Security Act. The Michigan Employer Job Aid will be updated to reflect this change. Reminder: Employers are required to include an individual's date of hire when submitting a new hire report. The date of hire is the date an employee first performed services for pay. This requirement was enacted in Section 802 of the federal Claims Resolution Act of 2010 (Pub. L. No. 111-291) which amended the new hire reporting provisions of Section 453A(b)(1)(A) of the Social Security Act.

 

Michigan's New Hires Operation Center will return a new hire report if it does not include the date of hire. To comply with the Social Security Act, the employer must resubmit the new hire report with the date of hire.

Employers who wish to report new hires electronically or who have questions regarding new hire reporting should contact the Michigan New Hires Operation Center at (800) 524-9846 or view the New Hire Reporting Web sitewhich includes general information, frequently asked questions, and reporting documents.

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Quarterly Wage Reporting 

The Michigan Employment Security Act (MCL 421.13) 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 Labor and Economic Growth (DLEG) unemployment insurance agency Web site. 

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Income Withholding for Employees 

In Michigan, approximately 74% of support payments are made through income withholding. All new and modified child support orders are required to include a provision for income withholding (unless both parents and the courts agree on other payment methods). Under income withholding, the support payment is deducted from the noncustodial parent's paycheck the same as taxes, insurance premiums, and other items. The employer sends the payment directly to the Michigan State Disbursement Unit (MiSDU). 

The Michigan Child Support Enforcement System (MiCSES) will automatically generate an income withholding order when a new employer is identified through  New Hire Reporting  . The Friend of the Court (FOC) can also manually initiate an income withholding order.  Employers must honor income withholding orders (42 USC 666),  (MCL 552.604 and MCL 552.1501). Both current and past due support (arrearages) can be collected through an income withholding order. 

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Electronic Income Withholding (E-IWO) for Child Support 

The federal Office of Child Support Enforcement (OCSE) has implemented a standardized, single-point web portal for electronic exchange of income withholding order information between employers and states. Information for employers interested in E-IWO is available on OCSE's Employer Services web site or contact Bill Stuart, OCSE E-IWO Coordinator, by email william.stuart@acf.hhs.gov  

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Medical Support 

Medical support is a form of child support often provided as health care insurance under a parent's policy together with cash payments for uninsured expenses.  Along with an income withholding order, employers may receive a national medical support notice, which provides direction to the employer on how medical support must be handled.  Employers and their insurance carriers are required to honor medical support orders. 

Employers and health insurance providers must follow the following criteria in responding to the National Medical Support Notice: 

  • The dependents must have access to open enrollment . 
  • The dependents may not be denied coverage on the grounds that the parents were never married, the dependent lacks the employee's last name, the dependent is not claimed on the employee's federal income tax return, or the dependent does not reside with the employee or in the insurer's service area. 
  • The employee may not eliminate coverage of the dependent unless the employee provides written proof that the order is no longer in effect or the dependent will be enrolled in a comparable health insurance plan. 

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Employer Payments to MiSDU 

Employers who withhold support payments from employees' wages must send those withheld support payments to the Michigan State Disbursement Unit (MiSDU). The following information must be provided for each withholding order payment: 

  • Employer Name 
  • Employer Social Security Number (Format: 999-99-9999) 
  • Michigan Docket Number (Format: 9999-999999-AA) 
  • IV-D Case Number (for each income withholding) 
  • Date Withheld 
  • Amount Withheld 
  • Employer FEIN (format: 99-9999999) 

Failure to provide all of the necessary identifying information could result in the payment being delayed, returned or marked as unidentified. 

We encourage you to send these payments electronically in the following ways: 

  • Electronically from the employer's bank account to the MiSDU bank account.
    Call 1-800-817-0805 for assistance in setting this up.      
      
  • Through the payments page at the MiSDU Web site 

Employers may also send payments by check. Any employer paying by check is encouraged to give the MiSDU the opportunity to demonstrate how electronic payments can reduce costs and staff time.  Please call 1-800-817-0805 for assistance. 

Payment by check can be mailed to: 

MiSDU
P.O. Box 30350
Lansing, Michigan 48909
 

Employer Advisory Committee 

The Michigan State Disbursement Unit (MiSDU) convenes an Employer Advisory Committee twice a year.  This committee focuses on child support issues of importance to the employer community.  The MiSDU welcomes employer participation on the committee.  Please call 1-800-817-0805 with any questions. 

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