14.3 Payments


Chapter Federal Authority
Collection and Distribution Social Security Act
§454(5), (11), (18), (27) and (34) State plan for child and spousal support
§454B Collection and disbursement of support payments
§456(a) Support obligations
§457 Distribution of collected support
45 CFR 301.1 General definitions
45 CFR 301.1 General definitions
45 CFR 302.32 Collection and disbursement of support payments by the IV-D Agency
45 CFR 302.38 Payments to the family
45 CFR 302.50 Assignment of rights to support
45 CFR 302.51 Distribution of support collections
45 CFR 302.52 Distribution of support collected in Title IV-E foster care maintenance cases
45 CFR 302.54 Notice of collection of assigned support
45 CFR 302.60 Collection of past-due support from Federal tax refunds

Subject State Authority
Payments Wyo. Stat. § 20-6-105 Eligibility for services; fees for services
Wyo. Stat. § 20-6-106 Child support enforcement generally
Wyo. Stat. § 20-6-107 Payment of support money collected to department
Wyoming Child Support Enforcement Rules
Wyoming Child Support Enforcement Rules
Chapter 14 Distribution of Support Collections
Chapter 15 Recovery of Retained Support
Policy Number Effective Date
14.3 October 1, 2010

Overview

In order to ensure the financial aspects of the Wyoming CSE Program work efficiently and smoothly, the Wyoming State Disbursement Unit (SDU) works closely with the Clerks of District Court, the State CSE Office, and the District CSE Offices.  Once an order is established by the District Court, the next step in the process is the enforcement of the order and receipt of the child support payment.



Note:  The SDU does not process Tribal payments.

Policy

Payment Methods

In Wyoming, payments may be received from any one of the following:

  •  An employer; 
  • A United States District Court (Federal prosecution); 
  • A financial institution; 
  • The military; 
  • The non-custodial parent;
  • Another state; 
  • Another Wyoming agency; 
  • A retirement or pension; 
  • Unemployment;
  • Worker’s compensation; or 
  • The custodial parent or his/her agent;
  • Other 

Effective Dates

As noted in 14.1 Introduction, the SDU will receipt and disburse payments received within federally mandated timeframes.  Therefore, it is imperative that the appropriate effective date is used for each collection receipted.  The table below provides the effective dates for payments received by the SDU.

Table 14.1 – Payment Effective Dates

Payment Method   Who Sent the Payment  Effective Date 
 CP/Their Agent CP Date payment received by the SDU
 Employer Employer Use the following order:
1) Pay date;
2) Invoice date;
3) Check date; or
4) Termination date
 Federal Prosecution U.S Treasury Check date
 Lien Financial Institution Date payment received by the SDU (Suspend all lien payments)
 Military U.S. Treasury First working day of the following month
 NCP NCP Date payment received by the SDU
 Other State Other State Collection date
 Other WY Agency Other WY Agency Check date
 Retirement/Pension U.S. Treasury Check date
 Social Security U.S. Treasury Check date
 Unemployment Unemployment Check date
 Worker’s Compensation Worker’s Compensation Check date
 Other Other Check date (Add comments explaining the “other” payment type)


Alternate Payee

A custodial parent may designate an individual to receive payments on a specific child support case.  The “Alternate Payee” Pop-Up feature on POSSE is used by only the SDU to record a permanent or temporary change of payee as authorized by the custodial parent or the court that does not require the creation of another POSSE case.  

Currently, the only time an Alternate Payee can be used is when the cudstodial parent requests that current support and/or arrears payments are made directly to the child.  


Note:  The Child Support Enforcement Agency or SDU from another State should never be entered as an Alternate Payee.  

Payments to Private Collection Agencies

Payments may not be made directly to a Private Collection Agency (PCA) when a custodial parent has contracted with a PCA to collect his/her child support and the PA has requestd redirection of those payment to its office.

Limited Services Cases – Redirect Payment

When an Initiating State sends a Notice of Redirect of Support Payments, the Central Registry at the State CSE Office will create a Limited Services Responding Non-IV-D case as described in 11.3.1 Intergovernmental – Responding – Central Registry and will transfer the child from the original Wyoming case to the new case, which will also transfer the support order.    

When the Initiating State requests the redirect end, either the District CSE Office or the Clerk of District Court will transfer the child and support order back to the original Wyoming case.  

Conversion Payments

“Conversion Payment Maintenance” on POSSE is used to add, delete, modify, and view child support payments and financial adjustments made prior to the implementation of POSSE, including payments made to Wyoming Clerks of District Court, the former Wyoming State CSE Fiscal Unit and “Other” states.  Additionally, this screen is used to record payments from “Other” states that are not already reflected in POSSE, both prior to and after the implementation of POSSE.

A case worker will not enter a conversion payment if:

  • The child support payment or adjustment was receipted by one of the Clerks of District Court or the SDU after the implementation of POSSE; or
  • The child support payment was receipted as a “Direct Pay to CP” after the implementation of POSSE and the case is not Intergovernmental - Responding.


Note:  “Direct Pay to CP” payments receipted by one of the Clerks of District Court after POSSE was implemented will be receipted via the “Payment Maintenance” screen.  When nightly distribution processing runs, it will correctly apply the payment against case balances based upon the federal distribution rules as described in Appendix 14.B – Federal Distribution Matrix.

  • The case worker does not have documentation of the child support payment or financial adjustment, e.g. the Initiating State’s payment record, an order or judgment from the Initiating State, or an affidavit attesting that the child support payment or adjustment was made and that it should be credited towards the case’s financial balances.
  • The case worker does not have sufficient details to make an accurate adjustment but is simply trying to reduce the balances in order to close the case. Instead, the case worker will contact the SDU about entering the appropriate financial adjustment(s) to the case to reduce the balance(s).
  • The case worker is merely testing the effects of adding a payment or making an adjustment with respect to case balances.

Payment Instructions

The SDU and Clerks of District Court will enter payment instructions into POSSE.  Most payment instructions deal with payment split, pro-ration of payments, or issuance of a replacement check.  If a case worker wants payment instructions added to a case, the case worker will consult with the District CSE Office Manager.  The consultation may help avoid payment instruction requests that could violate federal distribution.  Once the District CSE Office Manager approves the payment instruction request, the District CSE Office Manager will e-mail the SDU person responsible for payment instructions.  


Note: If there is a situation where the payment should not be disbursed, the case worker should e-mail the SDU. 

Stop Payments

If an employer or a non-custodial parent wants to “stop” a payment sent to the SDU, the employer or non-custodial parent shall contact the SDU directly, The SDU will work with the employer or non-custodial parent to process the “stop” payment request and ensure a plan is in place so that a replacement check is labeled as such and not processed as a separate payment.

Return of Funds from Lien or Garnishment

The SDU shall return funds to a non-custodial parent within five business days after determining that SSI payments or concurrent SSI payments and SSDI benefits in the account have been incorrectly garnished.  

Replacement Warrant

The SDU handles requests to replace a warrant and will determine if a replacement warrant should be issued based upon the circumstances of the request. If a warrant is replaced by the SDU, the custodial parent will need to complete and notarize a WIN106 Form.


Note:    A warrant cannot be replaced for at least 10 working days. 

Custodial Parent Overpayment

An overpayment of child support to the custodial parent may occur when:

  • The non-custodial parent voluntarily overpays; 
  • The non-custodial parent receives an abatement credit; 
  • A wage withholding is not amended in a timely manner; 
  • The child support obligation is reduced retroactive to the date of the modification petition; or
  • The child support balance changes after a fiscal review.

When the SDU completes the distribution process, the SDU may notice that a payment has distributed into the “futures disbursed” category.  If the SDU cannot determine the reason for the “futures disbursed” (e.g. a bi-weekly payment or payment instructions indicate the non-custodial parent wants to pay into the future), the SDU will contact the case worker assigned to the case.  The SDU will ask the case worker to review the case.  Based upon the review, the case worker will provide the SDU guidance.  Whether to:

  •  Refund the payment to the non-custodial parent; 
  •  Add payment instructions to POSSE to allow payments into a futures status and send the payment to the custodial parent; or
  •  Apply the payment to an arrears balance after a fiscal review.


Note:    The SDU will not contact the custodial parent and request a refund of a futures disbursed payment.

Cross Reference

Version Number Last Revised Date
 3 May 5, 2017