PAYMENT PROCESSING

CS 555P Distribution Overrides

10/98 Revised 07/09/26 Training Completed 07/26/26 Last Reviewed 08/04/26

42 U.S. Code 657; R527-330

 

 

Introduction

 

Support payments received by the Office of Recovery Services/Child Support Services (ORS/CSS) are sent to the State Disbursement Unit (SDU) Financial Services unit for processing. The SDU staff researches the payment and posts it to the noncustodial parent’s (NCP’s) Participant ID (PID) account or to the NCP’s case account. ORSIS automatically distributes the payment to the NCP’s debts using distribution rules. When the payment is distributed to a non-IV-A debt or an incoming intergovernmental case, the payment disburses to the custodial parent (CP) or intergovernmental payee.

 

 

Financial Services Directed Override to Distribution

 

There are circumstances when it is appropriate to override the distribution programming within ORSIS and post payments directly to the NCP’s case and/or debts. These circumstances include:

 

1.                   The NCP expresses intent. A NCP may express his/her intention of where a payment should be applied. Intent may be expressed by the NCP or payor either verbally or in writing at the time the payment is made or received. The NCP may express his/her intent to have a payment posted to a specific case, but can not specify the debt to which the payment should be applied. In accordance with 42 U.S. Code 657(a), current support must first be met before the payment (except Federal tax intercept payments) is applied to arrears. For more information on distribution rules, refer to CS 535P Distribution of Collections.

 

A payment is posted with intent when:

1.                   The NCP makes an online payment through the ORS website or at an ORS office location (e.g., at a reception desk or kiosk) and indicates the case for which the payment is intended. Because the specific case number is selected the payment is posted to the intended case(s) with an override;

 

NOTE: If an NCP has multiple cases and wants to pay with intent (NCP expresses his/her intention of where a payment should be applied), each case will require a different transaction because only one case number can be entered at a time. A fee will be charged for each transaction. If an NCP has multiple cases and makes a one transaction payment using their PID or Social Security Number, the payment will follow normal distribution rules. For more information see CS 537P Distribution of all Payments other than Discounted Settlements and Federal Tax Intercept Payments.

2.                   ORS receives a check from the NCP and it is payable to the CP. The payment is posted to the CP’s case with an override;

3.                   ORS receives a check from the NCP and the CP or child’s name on the check. The payment is posted to the CP’s case(s) or to the case(s) in which the child is associated with an override; or,

4.                   ORS receives a check from the NCP and the case number is on the check. The payment is posted to the case indicated with an override.

 

NOTE: If a payment is posted with a case or case/debt override and it is a prior period receipt, the prior period receipt rules only apply to the case up to the override amount. The rest of the payment is posted and distributed according to prior period receipt rules.

 

NOTE: Do not transfer payments posted with intent to another case unless you have obtained the NCP’s permission, or the case you are transferring from is paid in full.

 

2.                   Payments received on outgoing intergovernmental cases. Payments received from another state on an outgoing intergovernmental case are posted to the case(s) listed/identified on the payment. ORSIS distributes the payment using distribution rules to the appropriate debt(s) within that case. The override ensures that the payment received from another state is applied to the intended case when the NCP has more than one case.

 

3.                   Payments received from Federal tax intercept. ORSIS automatically posts federal tax intercept payments, to the case and debt certified for Federal taxes with an override.

 

4.                   Worker request. At times, it may be appropriate to add a posting note/instruction for SDU to override the distribution programming in ORSIS [e.g., if the payment received is a discounted settlement or a payment intended for a criminal case(s)].