Iowa has now passed legislation mandating employers to remit child support payments electronically. Iowa is now the 13th state to require EFT (electronic funds transfer) child support payments from employers.
Here is the timeline: Starting Dec. 31, 2011, Iowa employers with 1,000 or more employees on their payroll are required to submit support payments electronically. Employers with 500-999 employees have until Dec. 31, 2012 to comply. Employers with 200-499 employees, as well as employers with 100 or more employees who use a payroll processing agent, have until Dec. 31, 2013 to comply.
You can register your account online at the Dept. of Human Services for Iowa site. On this site, you can make child support payments, receive child support forms electronically, report new hires and rehires on your payroll, and report employee terminations.
If you’re an Iowa employer with fewer than 200 employees and you handle your own payroll, the mandate does not apply. Employers with fewer than 100 employees who also use a payroll service provider are also not affected.
Other states that have passed legislation requiring EFT for child support payroll deductions are California, Florida, Illinois, Indiana, Massachusetts, Nebraska, Nevada, Ohio, Oregon, Pennsylvania, Texas, and Virginia.
Rules vary widely for each state, so it’s important to make sure you’re in compliance. Noncompliance or late payments may mean penalties in some instances. Indiana, for example, fines employers $25 for non-compliance per payroll period. To look up your state’s requirements, visit the Office of Child Support Enforcement website.