Disbursements

In this Topic

  1. Introduction
  2. Direct Deposit
  3. Debit Card
  4. Payment Holds
    1. Undistributed Payments
    2. Pre/Overpayment

Introduction

The disbursement of support payments refers to the actual payout of support funds. Formerly, a paper check was the most common method of disbursement. Since January 2006, disbursement of support has been by direct deposit or by NJ Debit MasterCard® in accordance with the state’s continuing effort to improve customer service. The CPCustodial parent or party must choose one of those options. The initial opening letters to the CP include instructions on how to apply for direct deposit by completing the Application for Direct Deposit form and returning it to the NJFSPC at POB 5516, Trenton, New Jersey 08650. Some out-of-state payments and agency payments continue to be disbursed by check.

Note: A CP may request to receive paper checks because of a hardship. Hardships may include disability, a religious issue, or some other limiting factor in a CP’s life.

Direct Deposit

When the support obligation is entered, the Direct Deposit Authorization is generated and mailed to the CP. If the CP has more than one case, only one application is required for processing. The CP has 20 days from the notice date to return the application and any requested documentation to the NJFSPCNew Jersey Family Support Payment Center. Support payments received before direct deposit is activated are issued by paper check. Once the NJFSPC verifies the banking information provided by the CP, the direct deposit is activated and the child support payment is electronically transferred to the designated checking or savings account.

Debit Card

The NJ Debit MasterCard® provides a fast, convenient, and secure method of receiving support payments. The card is administered by EPPICard™ and carries the MasterCard®  logo. Because support payments are posted to this account, it is a debit card and cannot be used as a credit card. Using the EPPICard™ system, cardholders can purchase goods and services directly from retailers, as well as get cash back. Cardholders can also withdraw cash from any participating ATM or bank location. If the CP does not complete an Application for Direct Deposit, support payments will be posted to a NJ Debit MasterCard®; no credit check is required for the CP.

Payment Holds

Disbursements are occasionally held for a variety of reasons. Examples include checks returned because of an incorrect address for the CP, holds specified by a court order, and a change of beneficiary.

When a case is put on hold or released, the proper documentation must be prepared and maintained as an audit trail. In addition, the Vicinage Finance Division must be notified to place or release a hold on the account. This is usually done through NJKiDSNew Jersey’s Federally certified, statewide automated case management system for tracking all information related to child support cases. NJKiDS monitors cases to ensure that case actions are completed within required time frames. NJKiDS is also used to provide statistics, reports, and information about child and alimony/ spousal support enforcement in New Jersey to Federal, State, and local authorities. NJKiDS serves as the State Case Registry for IV-D support cases..

Note:  The use of the hold function should be limited, and the timely and accurate resolution of cases on hold is imperative.

Undistributed Payments

Undistributed funds are payments that have not been distributed or credited to the NCPNon-custodial parent’s account. Payments are temporarily placed in undistributed buckets for a variety of reasons, including, for example, if a case has been closed.

Pre/Overpayment

Pre/Overpayment is a predistribution hold on active TANF cases.

 

Institute for Families, School of Social Work  Rutgers, the State University of New Jersey - Child Support Program Manual 2020 Release