Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — Electronic Income Withholding Orders (e-IWOs): Making Wage Garnishment Easier to Administr (May 2010)
32 slides from Automatic Data Processing's conference presentation, May 19, 2010
Slide 1: Electronic Income Withholding Orders (e-IWOs): Making Wage Garnishment Easier to Administrate
Electronic Income Withholding Orders (e-IWOs): Making Wage Garnishment Easier to Administrate An ADP Webcast Wednesday, May 19, 2010 9-10am Pacific 12-1pm Eastern 1 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 2: Housekeeping Items
Housekeeping Items This is one of a series of complimentary webinars that ADP offers to tax and finance professionals each year. Today’s webinar will last for 60 minutes, ending at 1pm Eastern time. You will have the opportunity to ask questions during the last 10 minutes of For more informati
Slide 3: CPE Credit
CPE Credit Are you applying for CPE credit for today’s webinar? A. Yes B. No C. Not applicable NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •Stay for the full hour •Answer 3/4polling qu
Slide 4: Polling Question #1
Polling Question #1 What is e-IWO? A. Program created to allow states to send income withholding orders electronically B. Name given to electronic fund transfers within the state of IOWA C. New mandate for child support payments D. All of the above E. None of the above NASBA requirements for recei
Slide 5: Today's Guest Speaker
Today’s Guest Speaker 15+ years of experience with ADP tax and financial services products including • Garnishments • New Hire Reporting • Unemployment Compensation Management (UCM). Experienced with Tax e-File initiatives She and her team manage the relationships and compliance requirements b
Slide 6: Agenda
Agenda About ADP Child Support and its impact on Garnishments Electronic Funds Transfer (EFT) What is an electronic income withholding order (e-IWO)? • How it Began • The Portal • The States Participating ADP and e-IWO Adventure • ADP Highlights • The Process • The Benefits 6 ©2010 Automat
Slide 7: About ADP
About ADP Experts in automating back-office processes Listed on NASDAQ: ADP Fortune 300 company Experts in automating back- office processes so that organizations can stay focused on the core business 60 years of experience Revenues of $9 Billion More than half a million clients worldwide
Slide 8: Why Businesses Choose to Work with ADP
Why Businesses Choose to Work with ADP Proven track Record. Unmatched Breadth of Solutions. Proven track Record. Unmatched Breadth of Solutions. Financial Resources. Financial Resources. Global Reach. Global Reach. Half a Million Clients. Half a Million Clients. 8 ©2010 Automatic Data Processing, In
Slide 9: Child Support: The Impact on Garnishments
Child Support: The Impact on Garnishments Other States Wage Withholding – 70% $21 B Other State Tax Offset Sources Unemployment Offset – 2% 490 M Federal Tax Offset Federal Tax Offset – 5% $1.6 B Unemployment Offset Wage Withholding State Tax Offset – 1% $217 M Other Sources – 18% $5.5 B Other State
Slide 10: Electronic Funds Transfer (EFT) Payments
Electronic Funds Transfer (EFT) Payments Eleven states currently mandating EFT - CA, FL, IL, IN, MA, NE, NV, OH, OR, PA, TX, VA - Effective July 1, 2010 employers with 50 or more employees, the employer must make the payments to Nevada via an electronic transfer of money. Faster receipt of payme
Slide 11: Electronic Income Withholding Orders (e-IWOs)
Electronic Income Withholding Orders (e-IWOs) For child support lien types only Allows states to send income withholding order electronically Office of Child Support Enforcement (OCSE) created a portal to allow a central processing point 38 participating states, 20 states receiving electroni
Slide 12: What is e-IWO?
What is e-IWO? States, tribes and territories send income withholding orders (IWOs) electronically and employers accept and process them electronically States put IWOs into an electronic file – no paper sent to the employer Federal Employer Identification Number (FEIN) is the KEY identifier
Slide 13: How e-IWO Began
How e-IWO Began First meeting in Chicago – August 2004 Attended by 11 employers and 18 states, tribes, and territories Formed workgroups that designed, developed: • Flat file layouts and XML schema based on the “Order/Notice” form • An electronic acknowledgement process from employers to State
Slide 14: Polling Question #2
Polling Question #2 States are required to implement e-IWO. A. True B. False C. Don’t Know NASBA requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •Stay for the full hour •Answer 3/4 polling questions 14 ©2010 Automatic Data Processing, Inc. Propriet
Slide 15: The Pilot
The Pilot Established between several states and employers Tested layouts and process developed by the workgroup Used the Federal Office of Child Support’s Frame Relay Network (OCSENet) to transfer files between state, tribes and territories and the Defense Finance Accounting Service (DFAS). 1
Slide 16: Now It's a Portal
Now It’s a Portal Greatly facilitates transmission of e-IWOs from states to employers/payroll processors and acknowledgements from employers to states, tribes, and territories Employers and states have just one communication point Ability to “convert” and forward file formats PDF’s are offer
Slide 17: e-IWO Process
e-IWO Process State State 1. e-IWOs are pulled from states via OCSENet 2. e-IWOs are unbatched from States 3. e-IWOs are validated for errors and returned to States when critical errors exist 4. When necessary, e-IWOs are transformed into a reciever-specific format 5. e-IWOs are batched for ADP Rout
Slide 18: Portal Implementations
Portal Implementations WA ME MT ND OR VT MN NH ID WI SD MI MA NY WY CT RI IA PA NV NE NJ OH UT IL IN DE CA CO WV VA KS MO KY NC TN AZ OK NM AR SC 2 AL GA MS AK TX LA FL 1. Arizona 6. Indiana 11. North Carolina 16. Pennsylvania 2. California 7. Massachusetts 12. North Dakota 17. Texas 3. Colorado 8.
Slide 19: Portal Registration, Profile and Testing
Portal Registration, Profile and Testing Employers, payroll processors, and states must register to use Portal Registration includes “agreement” to send or receive electronic income withholding orders Complete a “profile” form indicating contact information, file transfer preferences, server a
Slide 20: Polling Question #3
Polling Question #3 Participants can choose to receive PDF images of electronic Income Withholding Orders. A. True B. False C. Don’t Know NASBA requirements for receiving CPE Credit: •Log in from same e-mail address that you used to register •Stay for the full hour •Answer 3/4 polling questions 20
Slide 21: ADP and the e-IWO Adventure!
ADP and the e-IWO Adventure! 21 21 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 22: ADP Garnishment Services Highlights
ADP Garnishment Services Highlights ADP has been processing wage garnishments since 1997 • Comprehensive service launched 2001 Liens Processed: Over 91,000 orders per month • 65% Child Support Orders • 35% Other Types Payments Disbursed: Over 720,000 per month • 62% EFT • 38% ADP Check Major
Slide 23: Our Adventure Begins
Our Adventure Begins Active participants since the creation of the workgroup • Attended first meeting in Chicago • Met again in September 2006 in D.C. Considered a project within ADP • Projects need prioritization Authorization process needed to be defined Determine formats to receive • PDF
Slide 24: Processing in the New World
Processing in the New World Clients authorize ADP to receive e-IWOs Client’s Federal Identification Number (FEIN) information transmitted manually to OCSE • FEIN’s filtered to the states 30 days to add / terminate clients from the process ADP begins receiving XML files via the portal from pa
Slide 25: Steps Along the Way
Steps Along the Way Dedicated internal project group met weekly Completed functionality testing Developed internal training classes • New procedures Determined clients for internal pilot participation • Phased implementation for existing clients 25 ©2010 Automatic Data Processing, Inc. Propr
Slide 26: Lessons Learned
Lessons Learned Benefits • Faster turnaround time for processing orders • Increased accuracy • Standardization and consistency of data received • Increased security of confidential data (Social Security Numbers) • Reduction in calls for status of case/order • Payments disbursed faster Detours an
Slide 27: And the Adventure Continues…
And the Adventure Continues… Electronic transmission of Federal Employment Identification Numbers (FEINs) Full base roll out Lump sum capability Participating in the Electronic National Medical Support Notice workgroup 27 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Inf
Slide 28: Polling Question #4
Polling Question #4 Which of the following does ADP provide to its Garnishment clients? A. Zero ongoing maintenance B. Cost savings of up to 300 hours of IT time C. Continuous support for any ongoing changes the Office of Child Support Enforcement (OCSE) imposes D. Control of data through on-line
Slide 29: Benefits of Choosing ADP
Benefits of Choosing ADP Working with ADP means that you will gain efficiencies that translate into more accurate processing and appreciable time-savings. Benefits include: • Cost savings of up to 300 hours • Safe and secure file of IT resources. transmission with electronic •No additional IT deve
Slide 30: Questions & Answers
Questions & Answers Corrinne Flores • Manager, Agency Relations, ADP • Corrinne_Flores@adp.com 30 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 31: Thanks for Joining Us Today…
Thanks for Joining Us Today… To download a PDF copy of today’s slides, just click on the printer icon that appears in the lower right hand corner of your screen For information on any of the ADP products or services referenced during today’s webinar: • Phone 800-CALL-ADP • Visit www.adp.com CP
Slide 32: Please take a moment to complete our on-line survey
Please take a moment to complete our on-line survey Let us know how we can make our webcasting program better Enter drawing for an ADP TotalPay Card preloaded with $100 and good anywhere that Visa is accepted 32 ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information.