Frequently Asked Questions

For Those New to the New Hire System

• Getting Familiar with the New Hire System

New Hire Reporting

• What is New Hire reporting?
• What is the definition of "employer" for New Hire reporting purposes?
• Who should be reported?
• What will be done with the New Hire information?
• What are the advantages for employers?
• If I take over a business, do I have to report all the employees?
• If I layoff and then re-hire an employee, or an employee returns after a leave of absence, do I need to send in another New Hire report?
• Are labor unions and hiring halls required to report?
• As a multi-state employer; do I have to report to each State in which I have employees?
• How soon must I submit a report after hiring or rehiring someone?
• What form do I use to send in my New Hire reports?
• How will States in which I have employees working know that I have selected another State to receive my new hire reports?
• What are the penalties imposed on employers for noncompliance with new hire reporting?
• How can I ensure that the Social Security Number (SSN) and employee name match?
• What is considered to be the "date of hire"?
• May an employer submit a new hire report without using an employees Social Security number?
• Isn't the new hire information available through quarterly wage reporting?
• Should we report new hires who quit before the reporting deadline?
• What address should be reported as the "employer address"?

Termination Notices

• Should employee's terminated during their first pay period be reported?

Income Withholding

• Can child support be withheld from Federal Work Study grants?
• We are currently withholding child support from our independent contractors (earnings reported on 1099). If they incorporate themselves, are we still obligated to (or allowed to) withhold from their corporation?
• When a company merges with another company, forming a new company with a new name and a new FEIN, how should the child support income-withholding orders be handled for the "new" employees?
• What should the employer do if it has received both an Internal Revenue Service (IRS) levy and a child support income-withholding order/notice for an employee?
• Can commissions be garnished through income withholding for child support?
• I know of an employer that is not withholding child support for an employee. What can be done about this?
• What happens if an employee is laid off during a slow period, but has been kept on the payroll roster in "on-call" status?
• Does the $2.00 fee apply to all DHS withholding orders - old and new?
• Will employers be receiving new DHS orders to inform them of the new fee?
• How does this work with the limits applicable to DHS orders - 50% of disposable wages for example?
• Can the fee be remitted via ACH the same as the regular withholding amount?
• Does the fee have to show as a separate ACH transaction?
• Is there any special identifying information necessary for the fee other than the ID number already included with each payment in the ACH file?
• Does Maine charge a fee on wage withheld payments?

Medical Support

• What should I do if an employee no longer makes enough money to continue employer-sponsored health insurance coverage?
• If the court orders the custodial parent to provide health care coverage, can Division of Support Enforcement and Recovery (DSER) use the National Medical Support Notice (NMSN) to enforce the health care coverage order against the custodial parent?
• What is the National Medical Support Notice (NMSN)?
• If medical premiums are subject to Consumer Credit Protection Act (CCPA) limits, should the employer count the entire premium or just the portion attributed to the coverage for the child? How is the child's portion calculated? (Or if the CCPA limits do not apply, should the employer allow the entire health care premium as a deduction from income before applying CCPA for the support amount, or just the child's portion)?
• Are medical support premiums deducted by the employer from the employee's pay subject to the Consumer Credit Protection Act (CCPA) limits?
• When is the National Medical Support Notice (NMSN) sent to the employer?

Electronic Payments

• Is there a standard format for EFT payments that all states accept?
• Are employers required to send child support payments electronically?
• What are the benefits/cost savings of sending payments electronically?

New Hire Reporting

New Hire reporting is a process by which you, as an employer, report information on newly hired or rehired employees to us within 7 days of the date of hire.

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Maine law and federal legislation states that an "employer" for New Hire reporting purposes is the same as for Federal income tax purposes (as defined by Section 3401(d) of the Internal Revenue Code of 1986) and includes any governmental entity or labor organization.

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Any individual who receives a W-2 form and any independent contractor when reimbursement for such services is anticipated to equal or exceed $2,500 in a year.

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Division of Support Enforcement and Recovery (DSER) will match New Hire reports against our child support records to locate parents, establish an order, or enforce an existing order. Once these matches are done, we will transmit the New Hire reports to the National Directory of New Hires (NDNH), the Department of Labor, Workers' Compensation Board and Maine Revenue Services.

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A direct benefit to employers is the prevention of fraudulent unemployment and workers' compensation payments. It reduces the number of requests from other agencies to verify hires, rehires, terminations, income and medical availability. The Division of Support Enforcement provides flexible reporting methods with minimal costs and creates one central reporting location.

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No, not if these employees have previously been reported, but employers must report new hires for the new business.

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If the employee returning to work is required to complete a new W-4 form, or has been separated for at least 60 consecutive days, the employer must report the individual as a New Hire to Division of Support Enforcement and Recovery (DSER).

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Labor unions and hiring halls must report their own employees, that is, individuals who work directly for the labor union or hiring hall. If the labor union or hiring hall simply refers individuals for employment, a new hire report does not need to be filed.

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If you are a multi-state employer, you may report newly hired or rehired employees to the State in which they are working or you may select one State to which to report all of your new hires. Contact the State you wish to report to for the data specifications and file layout for reporting electronically or by magnetic tape.

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Maine and federal law mandate that New Hires be reported within 7 days of the date of hire or rehire.

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Employers may report New Hire information on the Division of Support Enforcement and Recovery (DSER) New Hire Portal, setting up electronic reporting through FTP, or by fax. If you are reporting more than 25 New Hires, you must use one of our electronic options. Please contact us at Contact@ME-Newhire.com for assistance to set up electronic reporting or visit Electronic Reporting page.

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The National Directory of New Hires will maintain a list of multi-state employers and their designated reporting locations. This data will be made available to all States.

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Maine employers may be fined up to $50.00 per day per newly hired employee. Other states would be fined based on that state's law. If there is a conspiracy between the employer and the employee not to report, the penalty may not exceed $500. States may also impose non-monetary civil penalties under state law for noncompliance. For more information, go to the Maine Employer's Page http://www.maine.gov/dhhs/ofi/Division of Support Enforcement and Recovery (DSER)/employer/faq.html

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Ask to see your employee's Social Security card and enter the full name and SSN exactly as they appear on the card. For example, do not enter "Bob" on the new hire report if his card reads "Robert." If your employee has changed his or her name (for example, from maiden to married) and has not notified the Social Security Administration (SSA), ask the employee to call SSA at (800) 772-1213, or contact any Social Security office.

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The date of hire is the first day in which that person performs services for pay - i.e., the first day of work. This is also the date the employer recognizes as the first day for income tax withholding.

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No. The Social Security Number (SSN) is a required data element in the new hire report. Including a SSN in a new hire report is important for a number of reasons. Before state new hire records are submitted to the National Directory of New Hires (NDNH), the Social Security Administration (SSA) verifies the name and SSN combination provided to the State Directory of New Hires with the SSA master file of correct Social Security Numbers. If the combination submitted does not correspond to the SSA file, the new hire report is not entered into the NDNH. Correct SSN data is also important because new hire records are used for cross-matching with outstanding child support cases and with unemployment insurance claims. These cross-matches are performed using the SSN as a key field. Therefore, it is critical that you use only a valid SSN. Do not use an Individual Taxpayer Identification Number or Resident Alien ("green card") number in place of the SSN.

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Yes, however quarterly wage data is often out-of-date before Division of Support Enforcement and Recovery (DSER) receives the information. There can be as much as a six-month lag between the time the data is submitted and when it is available to Division of Support Enforcement and Recovery (DSER) (four months for federal agencies). New hire reporting data is available within a significantly shorter time period. Because the data is more current, noncustodial parents can be located faster, allowing child support orders to be established and/or enforced more quickly.

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Yes. Because an employer/employee relationship existed and wages were earned, you must submit a new hire report. Even though the employment period was short, the reported information may be the key to locating a delinquent noncustodial parent.

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If the employees work site address is different from the payroll address, report the address where you want an income-withholding order to be sent.

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Termination Notices

Yes. A termination report must be submitted because (1) an employer/employee relationship existed, (2) the employee filled out a W-4 form, (3) a new hire report was submitted for this employee, and (4) an income withholding order/notice was received for this person. Even though the employment period was brief, the reported information may be the key to locating a delinquent noncustodial parent.

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Income Withholding

No. Federal Work Study (FWS) grants from the Department of Education are exempt from child support withholding. The statutory basis exempting such educational grants is found at 20 USC1095a(d) and such grant monies are not subject to the "inclusive" provisions of 42 USC 659 and 5 CFR 581.

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If an independent contractor becomes incorporated, you cannot continue the withholding. Once an independent contractor incorporates, you will contract with the corporation, not the individual. Since the corporation is not the entity that owes child support, withholding from funds due to the corporation is inappropriate. Notify Division of Support Enforcement and Recovery (DSER) that the noncustodial parent incorporated. Once Division of Support Enforcement and Recovery (DSER) is notified, it will submit the Income-Withholding Order/Notice to the newly established corporation.

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To avoid any lapse in child support payments to the employees dependent children, the new company should continue to honor the income-withholding orders issued to the pre-existing company. It is recommended that the employer advise its employees who have income-withholding orders that their withholding will be continued in order to prevent any interruption in payments to the children, or accumulation of arrears (past due child support.) If the company does not wish to honor the previous income-withholding orders, it should immediately send a termination notice from the pre-existing company to Division of Support Enforcement and Recovery (DSER) who can then issue new or revised withholding orders to the new company. The termination notice (listed as #6 on the back side of the standard Order/Notice to Withholding Income for Child Support form) also asks for information about the new employer, if known, so the new company's name and address can be provided to Division of Support Enforcement and Recovery (DSER).

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If an IRS tax levy was entered BEFORE the underlying child support order was established, then it takes precedence over the child support withholding order/notice. If not, the child support withholding order/notice takes precedence. The employer should notify Division of Support Enforcement and Recovery (DSER) that an IRS levy was received in addition to the income-withholding order/notice. Division of Support Enforcement and Recovery (DSER) can inform the employer if the underlying child support order was in fact established prior to the date that the IRS levy was entered. If the underlying order was not established prior to the IRS levy, Division of Support Enforcement and Recovery (DSER) can then contact the IRS to determine if the levy may be modified to allow withholding of any child support.

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Yes, payments of commissions are considered income and if made periodically, can be garnished by income withholding. For example, a realtor or a salesperson.

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If you are aware of an employer that is not withholding child support payments, please contact the the local Division of Support Enforcement and Recovery (DSER) office www.maine.gov/dhhs/ofi/Division of Support Enforcement and Recovery (DSER)/index.html to report this. If you do not know which office to contact, you may call Division of Support Enforcement and Recovery (DSER) Central Office, (207) 624-4100.

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Forward this information to Division of Support Enforcement and Recovery (DSER) to alert it as to why withheld payments are no longer being sent. Generally, a new hire report does not need to be submitted for an employee kept on a payroll roster in an "on-call" status and then returned to an active status unless the employee is required to complete a new W-4 form upon returning to work.

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Yes. Any withholding order currently in place needs to be increased to include the additional $2 fee.

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No. Notices are being sent to employers to address current withholding orders and new withholding orders will address the fee specifically.

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The $2.00 fee would be included in the 50% of disposable earnings; see answer to last question 7.

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Yes.

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No.

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No, the fee will automatically be withheld from any payment as long as it exceeds the current support owed.

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Yes, effective July 1, 2012, for every employee that has a wage withholding order child support, you must deduct an additional $2 fee each time you deduct child support. Recently, the Legislature passed a budget which includes activation of a statute that has been in the law for many years under Title 19A §2103 section 3 as follows: 3. Fees and costs. The department shall charge a fee of $2 per pay period to all obligors whose child support payments are made to the department to reduce the department's costs in providing support enforcement services. The department may collect fees owed by the obligor by using any remedies available for collection of child support. The non-federal share of the fee collected pursuant to this section shall be deposited as General Fund undedicated revenue. The department shall deposit amounts collected to General Fund undedicated revenue only after the amount owed to the family for the current period is paid. The department shall collect the fee from obligors whose child support is paid to the department under an income withholding order by notifying the payor of income to the obligor to increase withholding by $2 per pay period. The department or any other person is not required to issue a new or amended withholding order to collect the fee, but shall notify the obligor in advance of the increase in withholding.

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Medical Support

If the employer cannot withhold the health insurance premiums from an employee's pay, it is the employees responsibility to pay his or her own health insurance premiums. The noncustodial parent may contact Division of Support Enforcement and Recovery (DSER) and seek a modification of medical support, but he or she is responsible to pay the court-ordered medical support until a court determines otherwise. https://www.mscompliance.com NOTE: Under Maine law, ME. Code Ann. 9-14-516, the Consumer Credit Protection Act limits apply to the combined total withheld for both child support and medical support. Income withholding for child support shall take priority over the deduction for health care premiums.

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Enforcement of a child support order requiring the custodial parent to provide health care coverage is not required in IV-D statute or regulations. Some states consider it appropriate to take enforcement actions against the custodial parent when the custodial parent is required to provide health care coverage in the child support order. However, Maine does not enforce against custodial parents ordered to provide health care coverage.

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The NMSN is a notice sent to employers from Division of Support Enforcement and Recovery (DSER) or its agent. Its purpose is to ensure that children receive health care coverage when it is available and is required as part of a child support order. It is designed to simplify the work of employers and plan administrators by providing uniform documents requesting health care coverage. NOTE: Maine' agent for medical support enforcement issues is Public Consulting Group, Inc. (PCG) https://www.mscompliance.com

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These questions assume the employer can make the distinction between costs attributable to the noncustodial parent (NCP) and costs attributable to the child in the medical order/NMSN. It is only relevant when CCPA limits apply to the health care coverage premium. It is particularly relevant when the employee/NCP is close to reaching the limits on withholding. If the entire premium is included, there may not be enough available income and the coverage could not be acquired; if only the child's portion is considered, there would be enough money available for the policy. This is a state-specific issue. A related issue is whether any amount of the premium needs to be considered when the parent already has a family policy in place and no additional expenditure is required to cover the child in question. When the issue arises, you should contact Division of Support Enforcement and Recovery (DSER) Central Office Department, by phone at (207) 624-4100.

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Yes, payments deducted from an employees pay pursuant to enrollment in health insurance pursuant to a National Medical Support Notice (NMSN), are subject to CCPA limits. If the employee/noncustodial parent voluntarily provides coverage, the amount of the premium may be deducted before reaching disposable income; however, the amount is not limited by the CCPA limits. If the employee does not voluntarily provide coverage, so that the employer receives a mandate (the NMSN) to provide the coverage and make the deduction, it is similar to a garnishment and therefore subject to CCPA limits. State law governs whether priority should be given to ongoing cash child support or health care premiums. (Most states give priority to cash support. This is not an issue for federal employees, and under some states law, where health care premiums are a mandatory deduction to arrive at disposable income. See the State Medical Support Contacts matrix for information on state withholding priorities. NOTE: Under Maine law, ME. Code Ann. 9-14-516, the CCPA limits apply to the combined total withheld for both child support and medical support. Income withholding for child support shall take priority over the deduction for health care premiums.

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Typically, the NMSN is sent when a new child support order is issued that requires a parent to provide health care coverage, when an existing order is modified, or when there is a new employer. It may also be sent in an existing case where it is not clear that the parent is complying with an order to provide coverage.

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Electronic Payments

Yes, the standard format for entering information about the child support obligation for a payment sent by EFT-EDI is called the DED Child Support Addendum Record. Division of Support Enforcement and Recovery (DSER) can provide you with this lay-out.

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Federal regulations do not require employers to send payments electronically, but several states and territories (Illinois, Indiana, and Puerto Rico) have passed legislation requiring employers of a certain size, or those who send a certain number of payments, to remit electronically.

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Electronic payments are less expensive, safer, and faster than sending paper checks. Your company will save time and money, and the child support payment will reach the custodial family faster. One study released by the National Automated Clearing House Association (NACHA) in 1999 gives the following cost comparison: Cost to send a paper check: $1.90 Cost to send a payment by direct deposit: $0.14 It is important to keep in mind, however, that direct deposit is only electronic funds transfer (EFT) and does not have the complete electronic data interchange (EDI) case information that states need to credit the noncustodial parent for the payment.

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