#   Reporting Terminations 

**training notes**

## Module Objectives

![](media/image1.wmf){width="3.4118055555555555in"
height="2.5479166666666666in"}

At the end of this module, you will be able to:

-   List the employer's responsibilities to the Child Support
    Enforcement Program when a non-custodial parent's employment
    terminates.

-   Explain what an employer must do if a former\
    employee/non-custodial parent is rehired.

**training notes**

-   Keep in mind that only terminated employees **with child support
    income-withholding orders** need to be reported as terminations.

-   Employers must also report terminated employees (with orders) who
    quit during their first pay period if:

    \(1\) an employer-employee relationship existed

    \(2\) the employee completed a W-4 form

    \(3\) a new hire report was submitted.

##  reporting terminations

![](media/image2.wmf){width="3.191666666666667in"
height="2.390277777777778in"}

**What?**

-   When the employer-employee relationship ends for any reason, the
    employer must notify the child support enforcement agency or court.

    **Why?**

-   To notify the entity that you are no longer paying on behalf of the
    obligated parent (former employee) and so the entity can issue a new
    Order/Notice to Withhold Income to the new employer if known and
    applicable.

    **When?**

-   As soon as possible following the termination ("promptly").

    **How?**

-   Using the #5, Termination Notification section of the standardized
    Order/Notice to Withhold Income for Child Support form, provide:

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-   Employee's name and case identifier

-   Last known home address, new employer's address\
    (if known)

-   Date of separation.

Training notes

**Special Requirements**:

![](media/image3.png){width="3.4006944444444445in"
height="2.5479166666666666in"}

-   Some states require reporting of additional information for medical
    support or insurance purposes, primarily to avoid interruption of
    medical coverage for the dependent child.

-   Retain the income-withholding order/notice in case the employee is
    rehired (see following section for rehire requirements). Length of
    time for keeping orders/notices active varies from state to state.

training notes

-   The requirement to reactivate orders automatically is especially
    beneficial in those industries that typically undergo **seasonal
    layoffs** and rehiring.

-   Many terminated (not retired) employees opt to maintain health
    insurance coverage under COBRA until they can be re-enrolled in the
    employer's plan.

## Rehire after Termination

![](media/image4.wmf){width="3.4319444444444445in"
height="2.5590277777777777in"}

-   **What?**

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-   Sometimes a former employee is rehired, especially one with
    "intermittent status."

-   The employer's requirements upon rehire:

    Submit a new hire report

    Reactivate income-withholding order/notice that was honored prior to
    the termination.

Training notes

## terminations Summary

![](media/image5.wmf){width="3.5868055555555554in" height="2.69375in"}

-   **Termination**

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-   When the employer-employee relationship ends for any reason,
    **including retirement**, there is a final step that the employer
    must take. The employer must notify the child support enforcement
    agency or court that the obligated employee/non-custodial parent is
    no longer on the payroll.

-   This notification is very important, and informs the agency/court
    that:

    The employer is no longer paying the obligated parent and deducting
    child support from his/her paycheck.

    A new order/notice to withhold income needs to be issued to the new
    employer.

    The continuity of health insurance coverage for the former
    employee's child can be ensured, wherever possible.

-   Termination reporting requirements vary from state to state.

Training notes

-   **Rehires**

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-   When a former employee is rehired, the employer must:

    Submit a new hire report

    Reactivate income withholding based on the order/notice that was in
    effect at the time of termination unless that order has expired.

-   Note that the length of time for which an order/notice must be kept
    active varies from state to state.

-   Reactivate medical support as permitted (i.e., re-enroll the
    employee and dependent in the plan once the employee becomes
    eligible for enrollment).