Employers Corner - DCSS Public Web

Employer Resource Center

Understanding the State Disbursement Unit (SDU)

Fact Sheet for California Employers

Federal Requirements

Federal law—part of the 1996 welfare reform legislation, US Code 42 USC 654B—requires all states to establish a central location for processing child support payments, including all employer wage assignments. The law’s intent is to:

• Improve the accuracy of child support records;

• Speed payment processing; and

• Streamline wage assignment processing for employers.

California’s SDU is now responsible for collection and processing the following types of child support payments:

• All payments for cases being enforced by local child support agencies (full-service IV-D cases); and

• All employer wage assignments—including those secured through private support orders—beginning in September 2006.

What the SDU Means to You

Throughout the summer and fall of 2006, employers will receive information about how to redirect payments to the SDU, and other changes to payment processing. To meet federal requirements, employers must send copies of all FL 195 Order/Notice to Withhold Income for Child Support (wage withholding orders for payments sent directly to individuals) to:

California State Disbursement Unit
P.O. Box 980218
West Sacramento, CA 95798

Once the SDU receives the FL 195, employers will be sent instructions for remitting the information required to process employee support payments. Payments will be returned to employers that fail to provide the required information. If you have questions about the FL 195, call the SDU Electronic Help Desk at 866-325-1010.

Employer Benefits

A variety of benefits will be available for employers including:

• Electronic payment options;

• All payments can be sent to one centralized location at the SDU;

• IV-D and Non-IV-D payments can be made at one time; and

• Helpful and advanced features will be offered on the www.casdu.com website.

More information is available at www.childsup.ca.gov.

Questions?

Please contact us toll-free at 1-866-325-1010

SDU FOR YOU!

California’s State Disbursement Unit (SDU) will provide accurate, uniform and innovative collection and disbursement of all child support payments previously processed locally by counties, as well as all payments previously processed by employers and sent directly to custodial parties.

What does SDU mean for your business?

Convenient new payment options

Once an employer enrolls, the SDU can accept ACH credit payments statewide. Submit ACH debit instructions on the SDU website or Electronic Help Desk, and use both interchangeably to make payments 24/7. No special training is needed—the system will prompt you for information. The secure SDU website will lighten employers’ burden by maintaining necessary data. Your personal identification number (PIN) gives you complete control over your account information

Safe, simple & accurate

Electronic payment submission can be 400 percent more accurate than paper payment processing. All payments can be made in one place. Pay anytime, day or night, from your office, home, or even while on vacation. Check payment status on https://www.casdu.com/CAS_SDU

Additional Information for Employers

Please remember not to deduct more than fifty percent of the non-custodial party's net income unless the court order specifies a higher percentage. Therefore if his or her total child support obligation and the cost to add the children to the health insurance plan exceeds more than fifty percent, unless the court order specifies a higher percentage, please deduct the child support obligation first but do not deduct both. Sign and return the Health Insurance Coverage Assignment to our office with a brief note explaining the child support obligation plus the health insurance costs exceeds more than fifty percent of the net income.

Questions

For more information, please call our employer line:

(707) 441-3200 (local)
(800) 963-8704 (toll-free)

Q: I just received this Wage Assignment; what does this mean?
A: The law requires the Department of Child Support Services serve a Wage Assignment regardless if the non-custodial party is paying on their own. It is intended to ensure the consistency of child support payments.

Q: How do I handle multiple Wage Assignments for the same employee?
A: If the employee has more than one assignment for support, add together the amount of support due. If fifty percent of the employee's net disposable earnings will not pay in full all of the assignments for support, prorate it first among all of the current support assignments in the same proportion that each assignment bears to the total current support owed. For example, George has a total net disposable income of $800. You cannot deduct more than fifty percent, as the court does not state you can deduct a higher percentage, which is $400. He has two support obligations, one for $300 current support (obligation A) and another for $200 current support (obligation B) for a total of $500. Obligation A would get 3/5 of the $400 ($240) and obligation B would get 2/5 of the $400 ($160). In another example, Henry's net disposable income is $1200. You cannot deduct more than fifty percent, as the court does not state you can deduct a higher percentage, which is $600. He too has two support obligations, one for $300 current support (obligation A) and another for $200 current support (obligation B) for a total of $500. However Henry owes some back due child support and obligation A has a repayment amount of $100 and obligation B's repayment is $50 for a total of $150. Obligation A would get 2/3 of the $100 ($66.67) and obligation B would get 1/3 of the $100 ($33.33).

Q: Can I send in one check for multiple employees?
A: Yes. Please note how much money is for each case, the employee's Social Security number, the DCSS case number and the legal date of collection.

Q: What is legal date of collection?
A: The legal date of collection is the month, day and year when the non-custodial parent was paid and the child support was deducted.

Q: I've lost the DCSS case number; what other sort of identification information should I put on the check?
A: Please note all information known about the case. For example, the payer's and or custodial party's names and Social Security numbers, the court action number under which you are deducting the money, the payroll date, the children's names or Social Security numbers or addresses of any of the parties involved.

Q: I just received this Health Insurance Coverage Assignment (HICA); what does this mean?
A: A HICA is a court order to enroll the child(ren) in the non-custodial party's health insurance plan if available at no or a reasonable cost. If the court ordered child support plus the cost of the health insurance coverage exceeds fifty percent of the non-custodial party's net income, please return the HICA noting the excessive cost. If coverage is available, please enroll the children and return to our office a completed Health Insurance Coverage Assignment form and any insurance cards and/or booklets. If coverage will be available at a later date, please keep the HICA and activate it when available and send to our office a completed Health Insurance Coverage Assignment form and any insurance cards and/or booklets. Please send us a note regarding when the insurance will be available and return the completed HICA to us once coverage is activated. A response must be received by our office within ninety days of service.