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This topic contains information on the following subjects:
1. An overview of the North Carolina Child Support Centralized Collections (NCCSCC) operation;
3. Proration;
Per North Carolina General Statutes effective October 1, 1999, all CSE and Non-CSE child support payments are paid to the North Carolina Child Support Centralized Collections Operation (NCCSCC). The Clerks of Court in all one hundred (100) counties are notified of payments that are made for Non-CSE cases (also referred to as “Non-IV-D” cases). Non-CSE cases are maintained by each local Clerk of Court's office.
The NCCSCC uses automated receipting technology for mail handling, forms processing, exceptions processing, and remittance systems to prepare child support payments for deposit into the State Treasurer's bank account and transmit payment information daily into the ACTS system. ACTS distributes and disburses checks to recipients of child support processed that day, then shares this disbursement information for Non-CSE cases with the Administrative Office of the Court's automated Support Enforcement System (SES).
The automated central payment processing ties the following components together:
Payors of child support direct their payments to one (1) of four (4) post office boxes owned by the state. Payments delivered to the post office boxes are picked up each day for processing.
A post office box has been designated for each of the following types of payments:
NC CS Centralized Collections
PO Box 900006
Raleigh, NC 27675
NC CS Centralized Collections
PO Box 900012
Raleigh, NC 27675
NC CS Centralized Collections
PO Box 900015
Raleigh, NC 27675
NC CS Centralized Collections
PO Box 900020
Raleigh, NC 27675
"Other" types of payments include out-of-state payments, payments from insurance companies, liens payments, bond payments, purge payments, financial account seizure remittances by Clerks of Court, and Worker's Compensation claims. These types of payments need a separate post office box because additional research could be necessary to ensure proper identification of the payment type.
The NCCSCC operation provides a scannable billing coupon and return envelope for to all participants whom ACTS identifies to be the direct payor for each child support case. The return envelopes are pre-addressed with the post office box designated for direct payments. Payments that are returned to NCCSCC should contain a coupon and a form of payment, such as personal checks, money orders, cashier checks, certified checks, account debiting, and possibly cash. Payments that are received with no coupons and/or no identifying information are sent to exception processing, where NCCSCC tries to identify the participant who made the payment. Blank coupons are available through the DHHS website at:
http://www.ncdhhs.gov/dss/cse/collections.htm.
If the NCCSCC operation receives payments with no coupons and/or no identifying information, it sends these payments to exception processing, which attempts to identify the participant who made the payment.
Income withholding forms that the child support staff sends to employers contain the appropriate post office box where payments are to be sent. NCCSCC provides employer remittance forms to employers with eight(8) or more employees for payments from wage withholding. Employers receive an Excel spreadsheet on a diskette with a layout similar to the employer remittance form that ACTS produces for smaller employers. Employers can obtain the remittance form by either contacting the NCCSCC operation or accessing the Internet web site.
Employers that ACTS identifies as having seven (7) or fewer employees under wage withholding are provided with an employer remittance form that is printed from the ACTS system whenever the withholding is changed for any one of their employees. This remittance document provides space for up to seven (7) employees and a blank area for the addition of a new employee. Local CSE caseworkers must include the remittance form with the wage withholding notice that is mailed to the employers. Employers must then photocopy the new remittance to include with future child support payments and discard any prior forms.
Military payroll centers have been notified of the appropriate post office box where they are to send payments and submit wage withholding payments with a hard copy listing of individuals. This post office box should not be used for alimony only remittances.
Payments from out-of-state child support agencies or Clerks of Court, insurance companies, executions of liens, performance bonds, purges, financial institution account seizures, and Workers' Compensation payments are also directed through the NCCSCC operation. Local Clerks of Court remit purge, lien, and performance bond forfeiture payments to the appropriate post office box, since these payments still are initially receipted at the Clerk's office.
Once the NCCSCC operation receives a payment, the image of the payment instrument, any remittance documents, and any other correspondence is scanned into the NCCSCC's automated system. NCCSCC verifies payments to ensure that they are acceptable for deposit. If a payment is deemed unacceptable for deposit, NCCSCC returns the payment to the sender with a letter requesting a replacement payment. However, the payment is still scanned into the automated system for tracking purposes and can be recalled if information is needed about that payment in the future.
Efforts are made to identify the amount of the payment, the correct obligor, and the type of payment (cash, check, money order, etc.) in an automated fashion, whenever possible. Cash payments are not encouraged, since all payments must be made through the mail and require some remittance information.
NCCSCC verifies any personal check from a payor that is in excess of $1000.00 with the bank before depositing the check. Likewise, any check in excess of $10,000.00 that is remitted by an employer is verified before it is deposited.
NOTE: Upon receipt, payments that NCCSCC receives in foreign currency are converted to U.S. currency and are then processed using the normal distribution procedures. However, if payments are not converted, the local CSE agency can report conversion fees as administrative costs and request reimbursement through federal financial participation.
Acceptance of personal checks does increase the risk of payments being made on accounts with insufficient funds. Two (2) safeguards exist to minimize the risk to both the client and the state:
1. NCPs are only allowed one NSF check incident. If a check is returned for this reason, the NCP's MPI # is flagged in the NCCSCC operation's automated system, and DHHS Controller's Office is notified of the NSF check. If the NCP makes child support payments by check in the future, NCCSCC returns the check with a letter instructing the individual to use other forms of remittance.
2. Any payment made by an NCP that exceeds $1000.00 or by an employer that exceeds $10,000.00 is automatically directed to exceptions processing to be handled manually by an operator. Operators attempt to verify whether enough funds are in the account to cover the check before receipting it.
NCPs who have questions about NSF can contact the DHHS Controller's Office at (919) 334-1199 or 334-1200.
The NCCSCC operation prepares the checks for deposit into the State Treasurer's office and generates deposit slips and reports. This information is then faxed to the State Treasurer's Office, the DHHS Controller's office, and the Central CSE Office. Information concerning payment identification and amounts is then transmitted through an interface between the NCCSCC's automated system and ACTS on a daily basis.
If a payment can positively be identified, it is receipted to the NCP’s MPI number in ACTS. In North Carolina, an NCP cannot designate a single payment to one client if he/she has multiple support obligations. If an NCP owes support on more than one order, payments are prorated among all obligations each time a payment is made, regardless of case type or income withholding status.
Caseworkers should not make an adjustment request that designates a payment to a single case when the payment has been correctly prorated and allocated to multiple cases. The proration formula is based on the same formula currently used to prorate among all income withholding orders. This includes payments made by both in-state and out-of-state payors.
While federal regulations require that payments coming into North Carolina be paid to the centralized collection unit (NCCSCC), the following exceptions exist:
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For questions or clarification on any of the policy contained in these manuals, please contact your local county office. |
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