PAYMENT PROCESSING

CS 700P-2 Monthly Arrears Payment Options and Procedures

11/85 Revised 09/03/24 Training Completed 09/17/24 Last Reviewed 09/03/25

45 CFR 303.100; Utah Code 26B-9-207, 26B-9-219, 81-6-101 and 81-7-102

Statutory Authority

45 CFR 303.100 Procedures for income withholding:

“(a)(2) In addition to the amount to be withheld to pay the current month's obligation, the amount to be withheld must include an amount to be applied toward liquidation of overdue support.”

Utah Code 26B-9-219. Payment schedules:

(1) The office may:

(a) set or reset a level and schedule of payments at any time consistent with the income, earning capacity, and resources of the obligor; or

(b) demand payment in full.

(2) If a support debt is reduced to a schedule of payments and made subject to income withholding, the total monthly amount of the scheduled payment, current support payment, and cost of health insurance attributable to a child for whom the obligor has been ordered may only be subject to income withholding in an amount that does not exceed the maximum amount permitted under Section 303(b) of the Consumer Credit Protection Act, 15 U.S.C. Sec. 1673(b).” (Emphasis added.)

General Information

If the NCP is not able to pay his/her debt in full according to CS 700P Overview, Payment Methods, Forms and Appendixes, the Office of Recovery Services/Child Support Services (ORS/CSS) may establish monthly payments to pay the past-due amount owing. All past-due support amounts should be paid-in-full as soon as possible. The NCP can only avoid continuing enforcement by paying his/her debt in full.

The Office of Recovery Services Information System (ORSIS) automatically sends a Notice to Withhold (NTW) to the NCP’s employer, which includes a default arrears payment once the case meets the criteria. If the NCP is paying through Automatic Payment Withdrawal (APW) and the case meets the criteria, the payment amount on the APW will be changed to include the arrears payment and an email will be sent to the NCP with the new payment amount. For more information on APW, refer to CS 750P Automatic Payment Withdrawal. The default arrears payment is based on a percentage of the NCP’s current support obligation.

Unless there is a good reason for adjusting the arrears payment up or down, the default payment should typically be left in place.

If/when it is appropriate to adjust the ORSIS default payment, determine the monthly payment amount using one of the methods listed below and make a case level narrative documenting the reason for adjusting the arrears payment. Setting a monthly payment plan does not preclude CSS from taking additional, concurrent enforcement action.

Monthly Arrears Payment Options

If the NCP is unable to pay the debt in full, there are three options for determining a monthly arrears payment. If there is a court order with a specific monthly payment amount for arrears, refer to the Court Ordered Monthly Arrears Payment subsection below.

NOTE: If the NCP has a case in common with CSS/CIC, coordinate the arrears payment negotiations with the agent assigned to the CSS/CIC case.

1. Up to 100% of the current support obligation when collecting current support and arrears in a sole custody case. When both current support and arrears are due, ORSIS defaults the arrears payment to 50% of the current support payment. The adjusted arrears payment must be somewhere between 10% and 100% of the current support obligation.

EXCEPTION: If the NCP was recently released from incarceration or a treatment program, CSS will only collect $1.00 per month for six months after the NCP’s release. For more information, refer to CS 705P Special Circumstances: Prisoner Forgiveness Program.

Start at the 100% of current support amount and negotiate lower as necessary. If the NCP volunteers to pay or it is appropriate to assess an amount that is higher than 100% of the current support obligation, obtain approval from the Regional Director (RD) in the form of an ORSIS narrative added by the RD. If the NCP’s current support order is very low (e.g., $30.00) or s/he has significant income, use the computed assessed method (see #3 below) to determine the monthly arrears payment.

2. Up to 200% of the current support obligation on arrears only cases. When the case is arrears only, the ORS default is 10% of the total liability for this case. The adjusted arrears payment must be between 10% and 200% of the NCP’s prior current support obligation for this case. To help determine the adjusted arrears payment amount, first determine if the youngest child has emancipated. If the child is:

a. Not emancipated – The monthly arrears payment should be between 50% and 200% of the current support obligation. This allows the NCP to still meet his/her monthly current support obligation. If the NCP is unable to pay 50% of the current support obligation, has a very low current support order, or has significant income, use the computed assessed method (see #3 below) to determine the monthly arrears payment.

b. Emancipated – The monthly arrears payment should be between 100% and 200% of the current support obligation. If the NCP is unable to pay 100% of the current support obligation, has a very low current support order, or has significant income, use the computed assessment method (see #3 below) to determine the monthly arrears payment.

If the NCP volunteers to pay or it is appropriate to assess an amount that is higher than 200% of the current support obligation, obtain approval from the Regional Director (RD) in the form of an ORSIS narrative added by the RD. If the most recent support was based upon a joint or split custody order, use the obligation on the worksheet as follows:

· Split Custody Worksheet: Use Parent 1’s obligation from line 8 or Parent 2’s obligation from line 9, as appropriate.

· Joint Custody Worksheet (Pre-June 2000): Use Parent 1’s obligation from line 9 or Parent 2’s obligation from line 10, as appropriate.

· Joint Custody Worksheet (Post-June 2000): Use the base child support award on line 10 for the paying parent.

3. Computed assessment method. This method considers the NCP’s actual income and necessary debts. Use this option to help determine a reasonable monthly arrears payment in those cases where the other monthly payment options may not be appropriate or if the NCP will not agree to one of the other options. For example, the current support order is very low (e.g., $30.00) the NCP has significant income, a more detailed assessment of the NCP’s ability to pay is required, or there are split or joint custody worksheets on the case.

When/if this method is used, it should only be used as a guideline for the monthly arrears payment. The NCP should not be forced to accept the assessed payment amount as a deterrent to requesting a full assessment. For example, if the monthly arrears payment using the computed assessment is higher than the monthly arrears payment using one of the other options listed above, the NCP may still agree to pay the lower amount. For details and more information on the computed assessment, refer to subsection Procedures for Adjusting the Monthly Arrears Payment, below.

Procedures for Adjusting the Monthly Arrears Payment

When adjusting the NCP’s monthly arrears payment from the ORSIS default, complete the appropriate sections in the Arrearage Assessment Computation.

1. Provide the NCP with a Financial Statement. The NCP must:

a. Complete the financial statement form; and,

b. Provide verification of:

i. Income;

ii. Monthly expenses; and,

iii. Payment of monthly obligations.

2. Complete Sections, A, B, C, D, E and F of the Arrearage Assessment Computation. Use the information from the completed financial statement to complete this form, as appropriate.

a. Section A – Case Information – Complete this section with basic case information; e.g., case number, names of NCP and custodial parent (CP), and balance due on all cases.

b. Section B – Payment In Full – This section is only completed if the NCP will be paying the debt in full at a discount. For procedures on discounted settlements, refer to CS 700P-1 Payment in Full at 100% or Discounted Settlement.

c. Section C – Volunteered Payment – Ask the NCP how much s/he can pay towards the arrears and list that amount in this section. The minimum arrears payment allowed is 10% of the current support obligation.

d. Section D – Monthly Arrears Payment Based on Percentage of Current – Calculate the arrears payment based on current support. For more information on arrears payment options, refer to subsection Monthly Arrears Payment Options. The minimum arrears payment allowed is 10% of the current support obligation.

e. Section E – Computed Arrears Payment – This amount is determined by completing “Section F – Computed Assessment Worksheet”. The minimum arrears payment allowed is 10% of the current support obligation. For more information refer to “h” below.

f. Final Arrears Payment (lump-sum or per month) – List the final arrears payment amount along with any comments. The arrears payment should not be less than 10% of the current support obligation.

EXCEPTION: The NCP has been released from incarceration or a Treatment Program. For more information refer to CS 705P Special Circumstances: Prisoner Forgiveness Program.

g. After determining the final adjusted arrears payment amount, the agent must sign the form and date it.

h. Section F – Computed Assessment Worksheet – Obtain verification and document the NCP’s income and debt. You may only give the NCP credit for those debts that s/he can verify.

i. NCP’s Monthly Net Income (this part includes items 1-9) – If the NCP’s present spouse or partner (living with the NCP) has an income, include the income in the assessment, if possible. If the NCP refused to disclose the present spouse or partner’s income amount and you are unable to obtain this information through ORSIS interfaces, exclude from the total household expenses:

A. Any portion attributable to the present spouse or partner; and,

B. Credit for step children that are being supported by the present spouse or partner. Also refer to “vii. Step Child Allowance” below for additional information

NOTE: CIC cases: If this is an intact family case, use both parents’ incomes.

ii. Total Monthly Child Support Obligation (#10) – List the NCP’s total monthly child support obligation being paid. If CSS does not have a case with the family, list the name and amount.

iii. Housing Allowance (#11) – This includes mortgage/rent, room and board utilities, property tax and insurance. List the actual amount up to 40% of the total household gross income (e.g., the NCP’s monthly gross income) and if applicable, the present spouse’s or partner’s monthly gross income. For more information on room and board, refer to Appendix R Reasonable Necessities and Child Care Allowance Chart, Table II Food Allowance Chart.

iv. Reasonable Necessities (#12) – To determine this amount, refer to Appendix R-P, Table I Reasonable Necessities or Table 2.

v. Child Care (#13) – List the actual amount up to the maximum amount allowed on Table 3 Maximum Monthly Child Care Payments in Appendix R-P.

vi. Telephone/Cell phone (#14) – List the actual amount up to $45.00 per month. Only give credit for either the telephone or the cell phone. Do not give credit for both.

vii. Step Child Allowance (#15) – Only give a step-child allowance, up to $236.00 per child, if the current spouse or partner’s income is being used in the assessment and the step-child’s other parent is not paying current support to the current spouse or partner.

viii. Transportation Allowance (#16) – List the actual amount up to $200.00 per month. Only give transportation credit for one vehicle unless the current spouse’s or partner’s income is included.

ix. Vehicle Allowance (#17) – List the actual amount up to $300.00 per month. Only give credit for one vehicle payment unless the current spouse’s or partner’s income is included.

x. Insurance Allowance (#18) – List the actual amount for the following insurance:

A. Health – If the NCP receives an insurance credit against the CRS debt, subtract that amount from the actual amount;

B. Dental – If the NCP receives an insurance credit against the CRS debt, subtract that amount from the actual amount;

C. Car – Only allow credit for one car unless the current spouse’s or partner’s income is included; and,

D. Life – Only allow credit if the NCP is court ordered to provide the insurance.

xi. Other Unavoidable/Allowable Debts (#19) – Only include unavoidable debts (e.g., uninsured medical debts, court ordered fines). You may allow a credit card expense if it was used to purchase an essential item, such as a refrigerator. Consult with your manager if you are unsure about which debts to include in the assessment.

xii. Total Debts and Expenses (#20) – The total amount of the verified debts and expenses.

xiii. NCP’s proportionate share of the debts (#21) – Calculate the NCP’s proportionate share of the debts, if appropriate.

xiv. Computed Monthly Arrearage Payment (#22) – To calculate this amount, use the amount from #3 (NCP’s total monthly net income) and subtract the amount from #20 (total debts and expenses). Enter the balance in this section and on Side A, Section E.

xv. Comments/Calculations – Use this space to add any comments or show calculations. The agent completing the assessment worksheet must sign and date the form.

NOTE: If the NCP requires additional time to provide verifications, inform him/her that CSS will continue to enforce the existing amount.

h. Assess the NCP’s arrears payment using one of the following:

i. At the computed amount; or,

ii. At an amount between the computed amount and up to 200% of the current support obligation; or,

iii. Use the volunteered amount if it is higher than the computed amount or up to 200% of the current support obligation. The minimum arrears payment allowed is 10% of the current support obligation.

i. Noncustodial parent is on a 26 week pay cycle. If the payments will be made by income withholding and the NCP is on a 26 week pay cycle, the arrears payment must be at least 10% of the current support amount to ensure that the full amount of current support will be met each month. For example, if current support is $200.00 per month, 10% of current results in an arrears payment of $20.00 per month, for a total payment of $220.00 per month. The employer will pro-rate this amount and send in approximately $101.00 every two weeks, which will be applied to current support to meet the $200.00 per month current support obligation. Twice a year, the employer will send three checks of approximately $101.00. The third check will be applied to the arrears debt(s).

NOTE: When the NCP becomes current, trigger an automated notice to withhold for current support.

j. If the computed assessment results in a negative amount, the minimum arrears payment allowed is 10% of the current support obligation.

Procedures after Determining the Monthly Arrears Payment

Once you have determined the monthly arrears payment based on one of the preceding options, take the steps listed below:

1. If the payments will NOT be made by income withholding, send or give the NCP the “Payment Schedule Notice to Obligor” form. Include the “Written Request for Review: Payment Schedule” form. The “Payment Schedule Notice to Obligor” is not necessary when income withholding is in place.

2. Inform the NCP that:

a. A payment plan does not preclude CSS from taking additional, concurrent enforcement action (i.e., tax intercept, lien-levy of personal or real property, etc.); and,

b. CSS will continue to take additional enforcement action(s), until his/her balance is paid in full.

3. Update ORSIS appropriately.

4. Create a case level narrative documenting the steps you have taken to determine the monthly arrears payment amount.

Default Arrears Payment

If you do not determine a monthly arrears payment on a case and the case qualifies for an automated NTW, ORSIS will automatically calculate a default arrears payment on the case and include that amount in the NTW. The default payment should typically be left in place. The arrears payment should only be adjusted up or down, when/if it is appropriate.

Computed Assessment as a Guideline Only

The computed assessed amount for arrears should only be used as a guideline. It is not intended to be a “punishment.” For example, if the monthly arrears payment using the computed assessment is higher than the monthly arrears payment using one of the other options listed above, allow the NCP to still pay the lower amount, if that is his/her desire. Do not force the NCP to pay the higher amount because a computed assessment was requested and conducted.

Court-Ordered Monthly Arrears Payment

Sometimes a court order requires the NCP to pay a specific amount each month towards the arrears. Generally, this occurs when the CP has obtained a sum-certain judgment for Non-IV-A arrears, or it may be included in a divorce decree, or on a CIC case when a respondent(s) does not agree with the assessed amount and requested a hearing before the judge who placed the child in custody. It is not the goal of CSS or the Attorney General’s Office (AGO) to include a specific amount for a monthly arrears payment in the order, but some judges set a monthly arrears payment as a condition of a purge agreement (civil action), probation (criminal action), or for other reasons. For more information refer to CS 838P Civil Contempt for Non-Payment of Child Support or CS 844P Criminal Nonsupport Overview. Review all of the repayment options with your manager and/or attorney on any civil or criminal case in which you believe the judge intends to set a monthly arrears payment. If the court ordered amount for arrears is included in a criminal order, refer to CS 844P for specific instructions.

If the NCP only has one case and it has a court-ordered arrear amount, enforce the court-ordered amount. If the NCP has multiple cases, assess the arrears payment on the other cases according to policy procedures. Once the payment(s) are received in CSS, it is applied to the case(s) according to distribution rules. For more information on distribution, refer to CS 535P Distribution of Collections.

If you believe the court-ordered arrears payment is substantially low based on information you have about the NCP’s earnings and ability to pay off the debt, or the NCP has failed to make payments as ordered, you may consult with the assigned Assistant Attorney General (AAG) to determine if it is appropriate to adjust the order. Before referring the case to the AGO, consult with your manager and assigned AAG.