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Employer FAQ's |
What is EFT/ EDI?
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EFT/ EDI refers to the process of sending (child support) payments electronically through the ACH (Automated Clearing House) network. EFT stands for electronic funds transfer, which refers to the sending of money electronically. EDI stands for electronic data interchange, which refers to sending the case information in order to post the payment and credit the non-custodial parent. |
What is the ACH?
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The Automated
Clearing House is a payment mechanism that replaces paper checks
with electronic transactions. ACH transactions are
processed through the ACH network, a highly
reliable and efficient nationwide, batch-oriented electronic funds transfer (EFT) system managed by
the Federal Reserve Bank. |
| How does EFT/ EDI work? |
Your company transmits payment
and remittance information to your bank, which then originates the
ACH entries to transfer the payment and remittance information through the ACH network
to the bank used by the NC CSCC to
collect the funds. Once received, the bank deposits the funds and provides the remittance information (EDI) associated with those payments to
the NC CSCC for posting. |
| What are the benefits/ cost
savings of sending child support payments electronically? |
Electronic payments
are cheaper, safer, and faster than sending paper checks. Your
company will save time and money, and the child support payment will
reach the custodial parent faster. |
| Are employers required to send
child support payments electronically? |
Federal regulations do not
require employers to send payments electronically, but several
states and territories have passed legislation requiring employers
of a certain size or sending a certain number of payments to remit electronically. Currently, North Carolina does not require
employers to remit payments electronically. |
| What payment formats does the NC
CSCC accept? |
EFT/ EDI transactions must be
transmitted in CCD+ or CTX format using the DED (Deduction) Child
Support Addendum Record. |
| What do I need to do in order to
set up EFT/ EDI? |
First, you may need to contact
your financial institution if you don’t currently have software that
will support a CCD+ or CTX payment format. Secondly, you will need
to submit identifying information (to the NC CSCC) for each employee
for whom you are withholding child support. The information will be
reconciled against the State’s child support computer system.
Finally you will need to conduct a prenote.
An information packet containing detailed information about this process can be
downloaded at www.ncchildsupport.com or you can contact us at 877-280-3675 and we will mail
you a packet. |
| How long does it take to set up
EFT/ EDI? |
That depends upon you and your
financial institution. Once the identifying information is
reconciled, and your prenote is successfully received at the NC CSCC, you can begin remitting your
withholdings electronically. |
| What format should I use to
submit my employees’ information for reconciliation purposes? |
You may either use the EFT/ EDI
Reconciliation spreadsheet that can be downloaded at
www.ncchildsupport.com, or you may provide us with a report from
your own system as long as it contains the following information for
each employee: name (first name, middle initial, last name), social security number, MPI number, and
withholding amount. |
| Do you have anything you can send
me regarding the EFT/ EDI process? |
An information packet can be downloaded at
www.ncchildsupport.com or you can contact us at 877-280-3675 and we will mail
you a packet. |
| What should I do if the wrong
amount is withheld from an employee’s paycheck? |
If the wrong amount is withheld
from an employee’s paycheck (or the employee’s pay was incorrectly
calculated), your company should contact the child support office that handles the
case. Can I transmit a debit transaction (reversal) if there is
a mistake? No, the NC CSCC does not allow debit
transactions. |
| Can I transmit a debit transaction (reversal) if there is a mistake? |
No, the NC CSCC does not allow debit transactions. |
| I recently arranged for a prenote
transmission, when can I stop mailing in checks? |
10 business days are required to
validate bank account information before you can begin transmitting
child support withholdings electronically. You should continue to
remit a check for your employees’ child support withholdings during this 10-business day period. You will be notified if the prenote
is unsuccessful, at which point you must continue to remit a
check until your bank account information has been successfully verified. |
| Whom should I contact regarding the EFT/ EDI process? |
NC Child Support Centralized Collections
P. O. Box 90311
Raleigh, NC 27675-0311
Telephone: 877-280-3675
Fax: 919-787-6055
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