Employer Withholding (EW) - Election for EW not to apply (CS) 277-04150000

An election not to have child support payments deducted directly from salary and wages can be made:

• verbally or in writing (form or letter) and
• when the customer is a payer with an ongoing periodic liability payable

The election should include:

• the customer's employer details including:
• the employer's name
• address
• contact phone number
• customer's employment status (Employee or Contractor)

Note: a customer cannot make an election for EW not to apply when deductions are made only to repay a debt. This includes payee overpayments. The Resources page contains a link to the Application to stop child support deductions from salary or wages form (CS1652).

An election will be invalid if a previous election has been:

• refused in the last 2 months, or
• revoked in the last 6 months because the person did not pay on time

This period starts from the date the Registrar revoked the election.

In these circumstances the election is invalid and EW must be established. See Employer Withholding (linking) for Child Support customers.

Is the election valid?

• Yes, see Step 1 in Table 2
• No, see Step 2 in Table 3

If a payer does not wish to provide their employer information, advise them that their election for EW not to apply will have a greater chance of being approved if their employer information is provided.

If the payer wishes for their election to be considered while continuing to refuse to provide employer information, consider the reasons why the payer has refused to provide the information, and any other relevant information relating to the election.

A decision to accept the election for EW not to apply can still be made, even if the payer has not provided their employer information. However, the Registrar must be satisfied, having considered the payer’s circumstances, that they are likely to make timely payments.

If the Registrar is not satisfied that the payer is likely to make timely payments, the election for EW not to apply must be refused.

Go to Step 2.

The Registrar will only accept a payer's election for EW not to apply if satisfied all future payments will be made on time.

A customer's payment history is a critical factor in deciding if the election is to be accepted.

For customers who:

• are paying child support for the first time, go to Step 3
• have a debt, go to Step 5
• do not have a debt, go to Step 4

Whenever possible Services Australia discusses payment options with a prospective payer before registration. If a payer lodges an election for withholding not to apply before any payment is due there will be no payment pattern to indicate whether the payer is likely to make timely payments.

In the absence of a payment pattern, the Registrar will determine the payer is likely to make timely payments and accept the election for EW not to apply except where the payer has expressly indicated an intention to avoid paying as required.

Note: where a discussion of payment could not be made with a prospective payer, the Registrar will collect the payments by employer withholding. See Employer Withholding (linking) for Child Support customers.

Go to Step 6.

The Registrar will be satisfied that a payer who does not have a debt is likely to make timely payments, unless:

• collection of debt has previously been enforced through either employer withholding, a tax refund intercept or from a third party, and
• immediately prior to lodging the Election, the payer has not established an extended period of voluntary compliance

or

• the payer has expressly indicated an intention to avoid paying as required

Go to Step 6.

The Registrar will not be satisfied a payer who has a child support debt, child support related debt or carer debt is likely to make timely payments unless:

• they were unaware of their child support liability
• the debt is the result of start-up arrears, a Section 106A order, or retrospective variation, or
• they have, at the time of lodging the election, established an extended period of voluntary compliance. This includes payments towards the debt in accordance with an agreed payment arrangement

These guidelines also apply when considering a subsequent request where a previous election has been revoked.

See Elections for Employer Withholding (EW) not to apply Cuba Process Help

Notify the customer of the decision. See Step 1 in Table 3.

Customers are entitled to a full explanation of decisions that affect them. Properly informed customers reduce reverse workflow.

Automatic letters are issued in the following cases:

• Employer contact - for details, go to Step 5
• Payee contact - for details, go to Step 6
• International payee - for details, go to Step 7

For details of contact to be made with a customer in the event an Election was:

• invalid, go to Step 2
• refused, go to Step 3
• accepted, go to Step 4

If the election is invalid contact the payer to notify them that their election is invalid, explaining the reason(s) for this. See Contact with Child Support customers. If prior to the Election for EW not to apply being made invalid:

• EW was established, procedure ends here
• EW was not established, see Employer Withholding (linking) for Child Support customers

If the election is refused, contact the payer to advise their election has been refused. See Contact with Child Support customers.

A PAD11-1 To Payer - rejected exemption from automatic deduction letter will automatically issue when the election is disallowed in the Payer/Employer Relationship window. If prior to the Election for EW not to apply being refused:

• EW was established, procedure ends here
• EW was not established, see Employer Withholding (linking) for Child Support customers

If the election is accepted, contact the payer to explain the election has been accepted.

• Play the Automated Message – Election Accepted to Pay Voluntarily to the customer using Services Australia Workspace
• Select the Election Accepted to Pay Voluntarily message played to the customer check box in the Election for EW not to apply decision macro once the customer confirms they understand their responsibilities.

See the Resources for the Automated Message.

Manage the payer’s expectations and encourage voluntary compliance. Focus on:

• building a positive relationship
• ensuring they understands the benefits of continuing to make timely payments, and
• encouraging open communication by requesting they contact Child Support as soon as possible if they become aware they will be unable to make a payment on time

A letter will automatically generate when the details of the decision are saved through the Payer/Employer Relationship window:

• if the employment status is unconfirmed, a PAD12-1 Advise of acceptance of exemption from EW
• in all other circumstances, a PAD16-1 Advice that new payment option accepted

Procedure ends here.

Where employer withholding has been established, a PAD 7-1 To notify to cease deductions and PAD 6-2 Schedule of Child Support Deductions will issue to the employer advising them to cease deductions. Procedure ends here.

Note: if deductions need to cease urgently, contact Employer Services via Services Australia Workspace by selecting Employer Withholding in the Corporate Directory, see the Resources page for a link to Managed Telecommunications Services Task Cards and Quick References Guides for instructions on how to transfer a call.

A PAD12-2 Accepted Exemption From Automatic Deduction letter will automatically issue to any payee owed a debt, including payees in private collect arrangements.

Delete the letter if it is being issued to:

• a payee in a private collect arrangement or
• a customer who has the overall role of payer if parents have dual roles due to shared care

Procedure ends here.

Cuba will issue a PAD 12-2 Accepted Exemption From Automatic Deduction letter to the Central Authority. For New Zealand ‘in’ cases no Cuba letter will issue. A unique letter is not required.

If a payer does not make timely payments, the election will be revoked unless the Registrar is satisfied the payer:

• is likely to resume making timely payments and
• enters into a reasonable payment arrangement in accordance with the Debt repayment methodology for the unpaid child support amount

In considering whether the payer is likely to resume making timely payments, the Registrar will first determine whether 1 of the following special circumstances caused the payer not to pay on time:

• the circumstances causing the failure to make timely payments were beyond the payer's control, and
• the circumstances existed for the 1 month only, or
• if the circumstances will continue beyond the 1 month, the payer has taken reasonable action to minimise their effect in the future
• the payer advised an unexpected temporary drop in income or an urgent and necessary expense caused the late payment, but for the 1 month only
• the amount payable for a particular month is abnormally high because it includes additional amounts for previous months caused by a retrospective variation to the liability, and the payer cannot afford to pay the additional amount by the due date

Do special circumstances apply?

• Yes, go to Step 3
• No, go to Step 4

If special circumstances apply, to satisfy the Registrar that timely payments are likely to resume the payer must:

• make a reasonable proposal for paying off the debt which has been accepted
• undertake to pay the normal monthly amount (that is, the monthly amount after excluding debt) when each falls due, and
• have established a payment pattern which indicates that, under normal circumstances, they make timely payments

If the Registrar is satisfied the person is likely to resume making timely payments and a payment arrangement has been accepted:

• document the decision to not revoke the election for EW not to apply. See Elections for Employer Withholding (EW) not to apply Cuba Process Help and
• notify the customer their election will continue, explaining the reason(s) for this. See Contact with Child Support customers

Procedure ends here

If the Registrar is not satisfied the payer is likely to resume making timely payments, go to Step 4.

The election will be revoked if the Registrar is not satisfied the payer is likely to resume making timely payments in the near future.

Document the reason to revoke the election for EW not to apply. See Elections for Employer Withholding (EW) not to apply Cuba Process Help.

If prior to the Election for EW not to apply being accepted

• EW was established, refer to Elections for Employer Withholding (EW) not to apply Cuba Process Help to remove the Stop Withholding indicator and re-establish EW
• EW was not established, see Service Officer role in setting up Employer Withholding (EW) linking