Important changes in child-support withholdings

Employers who are required by law to withhold court-ordered child support from an employee’s earnings should be aware of important changes in the system that collects and distributes these payments.

On April 24, 2005, the Michigan State Disbursement Unit (MiSDU) began using a new contractor, Tier Technologies, to operate the collection and disbursement of child-support payments. As a result, employers should note the following:

• Employers who send payments electronically must change the account and routing numbers used for electronic payments to Fifth Third Bank. These employers received a specific notice with detailed information about the change. Those who have not changed the routing and account numbers will be contacted by MiSDU, and the payment processing will be delayed.

• On April 24, payment by diskette and through WebChek was discontinued. In their place, online payments can now be made at the MiSDU website (www.misdu.com).

• The operational toll-free number for employers with other questions or problems remains the same (800.817.0805).

• The post office boxes used by employers who remit child support payments by check will remain unchanged. Any employer currently paying by check is encouraged to give MiSDU the opportunity to demonstrate how electronic payments can reduce costs and staff time. Please call 800.817.0805 for information.

Michigan’s child support program puts a high priority on working effectively with employers and providing customer service.

In addition to responding to approximately 350 calls per week, MiSDU has established an Employer Advisory Committee that meets twice a year to focus on child support issues of importance to the employer community. The unit welcomes your participation on that committee.

Through income withholding orders, employers represent 74 percent of child support collections. In FY ’04 the Michigan child support program distributed over $1.41 billion.

This article was written by Maria Candy, Office of Child Support, Michigan Department of Human Services.