(Revised 10/01/18 ML 3532)
Legally obligated child support payments paid by a household member to or for a non-household member, including payments made to a third party on behalf of the non-household member (vendor payments), and arrearages are allowable deductions.
Exception:
Legally obligated child support payments made to an individual outside of the household or an agency must be allowed if the child for whom the support was paid is a household member.
Example:
Dad has a legal obligation to pay child support/arrearages, the children are now living with him, and he continues to pay the support to his ex-wife who is not a household member. As dad continues to pay support, the deduction is allowed.
The worker must verify the following information:
- The legal obligation.
- The amount of the legal obligation.
- The amount actually paid including arrearages.
Verification can be obtained from:
- ND Child Support FACSES
- Child support stubs
- Documented collateral contacts
- Wage stubs
- Verification provided by the client from the child support website – www.childsupportnd.com
The surcharge or processing fee that employers charge and health insurance premiums are allowable deductions. These expenses are entered on the NOMD screen in TECS.
If the health insurance policy does not define how much of the premium is for each insured household member, the worker must prorate the premium amount among all members insured on the policy. Only the prorated amount of the health insurance the household is court ordered to pay is allowed as a deduction on NOMD. When health insurance premiums are an automatic deduction from a checking or savings account, the service fee charged by the bank is not an allowable deduction.
Alimony or spousal support payments are not allowable deductions.
The deduction can exceed the legally obligated amount as a result of arrearages, interest or income withholding orders.
Initial Application
At initial application, the worker will allow the deduction based on an AVERAGE of what the household has paid if there is a payment history, (two prior consecutive months which could include the application month), taking into account any expected changes and the legally obligated amount.
The number of months used to arrive at the average is not limited, and is based on the prior payment history, the individual’s current circumstances and discussion with the household. This must be documented.
Where child support is paid on a sporadic basis, a deduction cannot be allowed unless the worker can reasonably anticipate that a payment will be made. This determination is based on the prior payment history (two prior consecutive months which could include the application month) for the household and documented discussion with the household.
If there is no prior payment history (two prior consecutive months which could include the application month), a deduction is allowed based on what the household expects to pay, including arrearages. The worker must look at the amount legally obligated, the individual’s current circumstances and discussion with the individual. The amount allowed and the reason why must be documented in the casefile.
If there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual. The amount allowed and the reason why must be documented in the casefile.
Review
At review, the worker must verify the amount paid in the prior review period including arrearages and any reported change in the legal obligation. The worker must average (sporadic or regular payments) and use that amount for the next review period.
Any child support payments the household anticipates making in the month the review is due must be included in the average for the new review period.
Examples:
- A household certified for January through June is reviewed on June 5. Any child support payments the household anticipates making in the month of June must be included in the average for the new review period.
- A household certified for January through June is reviewed on June 5. Child support payments were made sporadically as follows:
January - $300.00
February - $150.00
May - $100.00
Total = $550.00
The household does not anticipate making any payments in the month of June. The average amount of $91.67 ($550 divided by 6) is allowed as a monthly child support deduction for the new review period.
If the household reports and verifies a change at review, the change must be acted on as part of the review process.
Examples:
- At review on October 11, a household reports and verifies a change in their legal obligation to pay child support from $300 per month to $200 effective October 1. The household states they have already paid the $200 for October and will continue to pay that amount each month. When working this case for November benefits, based on discussion with the household and verification of the new amount of the obligation, $200 a month is allowed as a deduction.
- At review in May, a household reports and verifies a change in their legal obligation to pay child support. The only child turned age 18 and is graduating from high school this month. Effective June 1, the child support obligation stops. When working this case for June benefits, no child support deduction is allowed.
- At review in May, a household reports a change in the amount of child support they pay. The worker must request verification of the change in child support paid. If the change is verified, the change must be acted on and documented. If the change is not verified, a child support deduction is not allowed.
If there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual. The amount allowed and the reason why must be documented in the casefile.
Ongoing Cases
The deduction averaged at initial application or review will continue to be allowed for ongoing cases unless the household reports a change in the legal obligation or the legally obligated amount they pay. If an averaged deduction is being allowed and the household reports a change in the amount of child support they pay or provides pay stubs that indicated fluctuating withholding, the change must be acted on.
If the household was not paying child support at the time of application or review and reports in writing or verbally to their worker that they are now paying child support, a deduction can be allowed if verified. The pay stubs can be used as verification of the change, if not questionable.
When there is an initial court order establishing child support, the amount allowed as a deduction is anticipated based on the court order, the individual’s current circumstances and discussion with the individual. The worker must document the amount used and the reason why. This amount is used for the remainder of the review period.
Providing pay stubs that indicate child support was withheld does not constitute a reported change by the household.
Once certified, the household is not required to report how much of the legally obligated amount they actually paid. That information must be reported and verified at the next review.
Example:
A household was initially certified allowing a verified legal child support obligation of $300 per month. At the time of certification, the payment history showed the household had actually paid $300 a month. The household was certified from May through October with an averaged deduction of $300 per month. In August and September, the household makes payments of $100. There is no change in the legal obligation. As the household is not required to report a change in the amount actually paid, the $300 per month deduction allowed through October is correct.
If the household reports a change in the legal obligation to pay child support, the legally obligated amount of child support or when a household reports they are now paying child support and a deduction is not currently being allowed during the review period and the change results in an increase in benefits, or the effect on the benefit is unclear, the worker must send the F419 requesting verification. ND Child Support - FACSES is available as a tool to verify this information.
If verification is provided within the 10-day period and benefits increase, the worker must act on the change within 10 days and send the household the appropriate notice.
If the reported change would result in an increase in benefits and the household fails to respond or refuses to provide the requested verification within the 10-day period, the worker must send the F401 – Failure to Provide Information. A 10-day advance notice is required.
If verification is provided within the 10-day period and benefits decrease or case closure results, a 10-day advance notice is required. If the change was reported in writing and signed by the household, adequate notice is required.
If the reported change would result in a decrease in benefits and the household fails to respond or refuses to provide the requested verification within the 10-day period, the change must be acted on using what the household initially reported and a 10-day advance notice is required unless the change was reported in writing and signed by the household adequate notice is required.
