Financial Components of a Support Order

Introduction

Determination of appropriate support obligations is addressed in Establishment. The financial components of the support order are as follows:

• Effective date
• Frequency of the obligation
• Amount of the financial support obligations
• Arrears owed as of the order issue date

Frequency of a Support Order

Because support is ongoing, orders specify the frequency of support charges—weekly, biweekly, semimonthly, or monthly. The frequency of the periodic obligation impacts both the amount of support due and how the obligation accrues during the life of the support case.

For obligations with a monthly frequency, the support period is the day of the month in which the charge occurs. For obligations with a weekly frequency, the support period is the day of the week on which the order is effective. Click herehere for examples.

Arrears

Arrears represent the amount of delinquent support from the date the support order was entered. For example, if the effective date of the order is July 1, 2006, and the NCP does not make a full payment on or before July 1, 2006, the support due is considered arrears. The amount of the arrears is calculated by multiplying the number of charge dates by the amount of the obligation. The support order should indicate the full arrears owed as of the order date.

Retroactive arrears (past-due support) are arrears owed for the period between the effective date and the court order date. The effective date of a support order is normally the date a party files a complaint or modification motion.

If the court orders that the full arrears are due immediately, it is expected that payment will be made, or the obligor is not in compliance with the order. In most cases, the court or the Child Support Hearing Officer will make a provision for an additional payment toward the set arrearage. This additional payment is not added into the current obligation and does not accrue. Click herehere for an example.

Manual Adjustment of Arrears

As a result of an audit or court order, it is sometimes necessary to adjust the arrears of a support case. Arrears may also be adjusted as a result of credit for direct payments. Direct payments are discouraged once the order is established by the court. The Obligorindividual who owes a financial obligation is instructed to send all payments to the NJFSPCNew Jersey Family Support Payment Center for proper credit and distribution. An obligor may have made direct expenditures or paid support in the period after the complaint for support was filed and before the order was entered. Direct payments or expenditures may also be made during the life of the order in exceptional instances, which may warrant a reduction of the arrears. If credit is not ordered by the court, it will be necessary for the PCSEProbation Child Support Enforcement Unit to receive and review all documentation (e.g., canceled checks, copies of money orders) and take the appropriate action. Actions may include scheduling a status review hearing or an enforcement hearing, issuing an administrative order (with the consent of both parties) to credit the account, or advising the party to file a formal motion. If a Superior Court Judge, Family Division, or a Child Support Hearing Officer grants the direct pay credit and includes it in the court order, the order is forwarded to the Vicinage Finance Division for adjustments.

The need for adjustment can originate in the PCSE Unit, the Family Division, or the CWACounty Welfare Agency. The adjustment is then made by the Vicinage Finance Division staff.

Collection

There are several payment sources and methods available to ensure the collection of support obligations. As described in Enforcement, these include income withholding, tax and lottery offsets, FIDMFinancial Institution Data Match, release payments to discharge warrants, and payments arising from judgments. NCPNon-custodial parents may also make payments directly to the NJFSPC or locally at the LPULocal Processing Unit of the Vicinage Finance Division.

NJFSPC Processing Requirements

Collected payments must be processed within two working days. When an obligation is less than $1,000, checks of $1,000 or more will be held for 10 days before initial processing. When an obligation is $1,000 or more, the first check payment will be held for 10 days before initial processing. If it is determined that the amount is the normal amount being charged, after the initial hold, all subsequent payments will be released within the two days required. If a check is returned for insufficient funds, checks from that individual will not be honored in the future, and, through collection efforts, the NJFSPC will recoup the payment amount and any associated fees.

Payment information is available to all parties, 24 hours a day, 7 days a week, by calling 1-877-NJKIDS1, or on the Internet. Customer service questions about direct deposit and employers that need assistance with income withholding should be referred to the NJFSPC at 1-800-559-3772. Customer service questions about the NJ MasterCard® should be referred to the New Jersey State EPPICard Service Line at 1-866-461-4094 or online at www.eppicard.com.

Payment Sources

Support payments are made through a variety of sources—most commonly the NCP and/or the NCP’s employer through income withholding. All payments are processed by the NJFSPC.

Source of Payment	Method of Payment
Individual payors	Payments may be sent to the NJFSPC by the NCP or by other individuals on behalf of the NCP.
Employers	Upon receipt of an Order/Notice of Income Withholding, employers withhold support amounts from the NCP’s wages and send payment to the NJFSPCNJFSPCUnited States Code, 42 U.S.C. § 666(a); 45 CFR 303.100(a)(1).
IRSInternal Revenue Service	The IRS sends intercepted federal income tax refunds of eligible NCPs to the DFD. Payment information is sent simultaneously to NJKiDS for posting, distribution, and disbursementdisbursement45 CFR 303.72.
New Jersey Division of Taxation—SOILSet-Off of Individual Liability	The New Jersey Division of Taxation sends intercepted state income tax refunds, Homestead Rebates, and New Jersey Saver Rebates to the DFDDivision of Family Development. Payment information is sent simultaneously for posting, distribution, and disbursement.
DOLDepartment of Labor	Through an electronic file, income withholding orders are sent to the DOL to garnish the NCP’s UCUnemployment Compensation benefits. The DOL sends payments to the DFD; payment information is sent simultaneously for posting, distribution, and disbursement.
Responding State Disbursement Units	Responding State Disbursement Units send paper-check payments made on behalf of the NCP in intergovernmental cases to the NJFSPC. Some states send EFTElectronic Funds Transfer Payments. EFTs are sent to the Judiciary Child Support Bank accountaccount45 CFR 303.7(c)(7)(IV).
Other Sources	Other entities that may send payment for the NCP to the NJFSPC include, but are not limited to, the following: the Social Security Administration, pension boards, and insurance agencies. These entities withhold benefits or income from the NCP in the form of Social Security Disability benefits and/or Social Security Retirement benefits, retirement/pension income, and workers’ compensation, respectively.

Payment Methods

Support payments can be made by the NCP or by another individual on behalf of the NCP through a variety of methods.

Method of Payment	Description
Personal check, money order, credit card, bank check, cashier’s check, or business check	Personal checks, certified checks, money orders, credit card payments, bank checks, cashier’s checks, or business checks containing identifying information, such as name, case number, and SSNSocial Security Number, should be sent to the NJFSPC; however, payments may be made at the LPU. Payments received at the LPU are forwarded to the NJFSPC for processing.
Employer income withholding	Employers sending checks for multiple payors must identify the case number and the amount of payment to be credited to each account.
Cash OTCOver-the-counter	Cash OTC payments can be made directly to the LPU and are deposited into the Judiciary Child Support Bank account. A transmittal is sent to the NJFSPC for processing.
EFTElectronic Funds Transfer Payment	These payments are transmitted by a variety of sources (e.g., the NCP, an employer, a foreign state, and the IRS).

NSF Recoupment

If an NCP attempts to make a cash payment for a previous NSFNon-Sufficient Funds payment at the local office, the NCP should be referred to mail the payment to the SDUState Disbursement Unit via money order or certified check only. The payment, clearly marked as an NSF recoupment, must be mailed to:

New Jersey Family Support Payment Center

PO Box 5485

Trenton, NJ  08638

Proration of Income Withholding Payments

Income withholding payments are prorated through an automated process. All obligations are added together to determine the NCP’s total support obligation. Individual obligations are then divided by the total of the NCP’s support obligations to determine the percentage that the individual obligation represents. That percentage determines the portion of the support payment to be applied to each case. The payments are distributed proportionally, or prorated, among all cases. Click herehere for an example.

Related Information

• www.njchildsupport.org
• Establishment
• Support Order Establishment
• Enforcement
• United States Code, 42 U.S.C. § 666(a); 45 CFR 303.100(a)(1)
• 45 CFR 303.72
• 45 CFR 303.7(c)(7)(IV)

 

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