Employer withholding reconciliation and top up 277-04170000

Employers must send details of their employee’s child support deductions including payment by the 7th of the month after the deductions are made. Employers can provide this information verbally, electronically or in writing.

The previous month’s deductions are reconciled in the same month the payment is due to ensure timely disbursement. Where the payment and deduction information are received from CSBOS and single touch payroll (STP) employers' deductions, it may be reconciled in the current month, however priority is given to previous month deductions. Payees can start to receive payments on any business day from the 8th of the month.

Note: when a Service Officer is aware of or identifies repeated contact or escalation from a parent or employer, prioritise the reconciliation or resolution of the issue.

The ERR which can be viewed in Cuba, identifies employers with unreconciled pay dates where deduction payments have or have not been received.

To ensure the ERR is accurate, only view it in Cuba.

The monthly ERR report is automatically created except for online and STP employers on the first day of every month for all employers with:

• linked customers, and
• pay dates in the previous month

The report is updated daily as employers are reconciled for the current month.

View the report in the Unreconciled Employers window. Unreconciled pay dates on the ERR, with or without payments will display with a status of either SAVE or INIT.

The Employer Account Summary window displays:

• the Employer and CSRN
• the pay dates left to reconcile
• unallocated payments on the employer account.
  Some of these payments may be for future months
• the number of customers linked to the employer for the reconciliation period
• outstanding account issues that need manual intervention such as top up and excess cash
• any unreconciled ERRs and the status of the ERR window

A new ERR can be created manually by selecting New in the Reconciliation Report List window. This must only occur when:

• creating a s72a report when topping up the linked paying parent report - See Reconcile section 72A payments (from manual and non STP employers) Cuba Process Help
• linking a customer that is not currently linked to the employer and needs to be added to the ERR

See ERRs for non STP employers Cuba Process Help

Note: corruption of future STP and CSBOS ERRs may occur if a manual ERR is created with a future month pay date. Reconciling one or more customers (for example, as NEM) before an STP exception report or CSBOS pay date is actioned, for all other customers, will cause an error. This error will not allow a submission to be actioned for the same pay date for any other employees.

Single payer employer records with a status of SAVE on the ERR will auto-reconcile overnight where:

• a payment or payments have been received and match the expected amounts
• a payment or payments combined with available excess cash matches the expected amount
• there is an unallocated payment which is within a tolerance of $10.00, and
• there are no other issues on the case, for example, excess cash, top up or consolidated revenue debt

Multi-payer employers will be auto-reconciled overnight:

• if the ERR has a status of SAVE where the payment or payments received exactly match the expected amount
• after auto top up where the status of the ERR has been manually reconciled and set to INIT status

Note: automatic reconciliation will only use employers’ unallocated payments and will not apply any rounding function where an excess cash component is used.

When auto-reconciliation has occurred, the money will disburse to the payee.

Where the first working day of the month falls on the 1st of the month, do not reconcile any employer accounts where the total expected amount has been received for each employee. Cuba will reconcile these accounts on that evening’s batch run. Only reconcile accounts (including setting them to INIT) where the amount differs from the expected deductions.

ERRs which successfully auto-reconcile will no longer appear on the Unreconciled ERR report. All remaining ERRs with associated payments will require action before reconciliation can occur.

If the employer has deducted from the employee's wages but the payment has not been received (including on an associated account), and a valid notice is in place, funds from consolidated revenue may be applied to the employer account where satisfied that the deduction has been made. This is known as top up and, if used, is applied as part of the EW reconciliation process.

Top up is automatically applied to ERRs by Cuba from the Tuesday night prior to the second Wednesday of the month until the end of the month when all the following conditions are met:

• the ERR is at INIT status
• the ERR pay dates are not for the current month
• the deductions are greater than $0.00
• there is not outstanding debt on the employer account (top up or consolidated revenue)
• there are no unallocated payments or excess cash
• there is no s72A payment noted on the ERR

When an ESO applies the use of top up to reconcile the ERR:

• an EMPTOPUP intray (future date) will generate
• a top up indicator will display on the Organisation window

When the payment is received from the employer, Cuba will automatically match the payment to the top up debt. A system batch will automatically apply top up nightly from the second Wednesday of the month until the end of the month.

ESOs are to use the AGED UNALLOCATED CASH intray to finalise employers with outstanding unallocated cash. Refer to the Reconciliation Support tools – Unresolvable unallocated cash

Team Leaders are to access the following reports located on the Employer Services national share drive:

• The Non-individuals (Excess Cash) report at the start of each month. The report provides details of all employers with excess cash available. ESOs are to investigate each case to determine if funds should be applied to an employer or debt or be refunded. Refer to the Reconciliation Support tools – Unresolvable excess cash
• The Aged Debt report which is refreshed at the start of each month. ES Team Leaders must access this report to identify employer records where:
• top up is being used continually when reconciling consecutive periods, or
• where there are top up amounts outstanding for lengthy periods of time
• where employers are identified, the Team Leader is to discuss the appropriate use of top up with the owning ESO

Note: outstanding unallocated cash may be payments for s72A notices, a customer who is not linked or a customer who has been recently delinked. Reconcile as soon as possible to ensure the payment is available to be disbursed.

ESOs are responsible for identifying and referring lump sum collection opportunities.

If an ESO is aware of a lump sum payment of a linked customer due to ceased employment, see Ending with arrears - lump sum in the Adjust and end EW table in ESO role in setting up Employer Withholding (EW) linking.

For all other lump sum opportunities:

• Check the customer’s account to see if arrears are owing that will not be satisfied by the deductions in place

If arrears are owing, obtain the following details from the employer:

• Total lump sum net payment amount
• Breakdown of payment, including the 'termination' amount
• The date of the payment
• Time of the payment if it will be made that day or the next day
• The amount of any final EW deductions. This will be considered if a s72A notice is issued

Advise the employer that a notice may be issued to collect further funds. Do not disclose information about the debt to the employer.

Referrals must be directed to the Lump Sum team, see the Customer Referral Guidelines > Lump sum opportunity

Where the payment is happening within 24 hours, the Employer Services team leader must email the Lump Sum team to ensure that the referral is actioned in time.

Check the Unreconciled Employers window daily to access the ERR. See ERRs for non STP employers Cuba Process Help.

Unreconciled Employer Reconciliation reports generate where auto reconciliation has not occurred.

Employers on the report must be manually reconciled.

Note: unreconciled pay dates are dates which have not been reconciled for the previous month. Go to the Pay Dates List window to identify the list of pay dates requiring reconciliation. Unreconciled pay dates need to be reconciled.

Search the ERR using the date range for the previous month which will display all the unreconciled employers remaining for that month.

If no date range is entered, the ERR will display the current month’s unreconciled pay dates which must not be reconciled until the following month.

Online employer accounts must only be reconciled by the online account Employer Services Team.

If the ERR shows an employer account has unallocated payments, the payments have been credited to the employer account, but have not yet been allocated to a reconciliation attempt.

Note: outstanding unreconciled pay dates and employer reconciliation reports should be actioned first as this may resolve the unallocated payments.

If the unallocated payments are for the current month, then no action is required.

If the employer is reporting deductions online or STP, reconciliation of the current month pay dates can be actioned.

Action unallocated payments for the previous month from the Employer Payment List window. See ERRs for non STP employers Cuba Process Help.

If the unallocated payments cannot be identified obtain evidence to confirm which payer it belongs to by checking for received correspondence such as deduction schedule or see Table 4. For more information on checking for correspondence see the Correspondence Cuba Process Help.

For each unreconciled employer, determine if the actual amount received is the same as the expected amount for each payer.

Note: ERRs should not be deleted unless the pay dates included should never have been created. If an ERR needs to be deleted it should be discussed with an SSO.

When an ERR is deleted the Payer Employer Withholding Enquiry window displays a status code of DLTE for that pay date. The status does not update on this window if the pay date is subsequently re-created and reconciled.

Check the ERR for the employer with the unreconciled pay dates or payments received and compare the actual amount deducted with the expected deduction amount.

If the actual and expected deductions match, automatic reconciliation will occur overnight. No further action required.

If the amount is more than the expected amount and the employer wants a refund, Table 6, Step 5.

If the actual deduction differs from the expected deductions and the employer does not want a refund, go to Step 5.

Do not reconcile the employer account if:

• the payment amounts do not match the deduction schedule, or
• the employer does not have specific information regarding which funds were deducted for each payer

Note: if payments are incorrectly reconciled, the amount will be disbursed which may result in a payee overpayment or a consolidated revenue debt for the payer. See Overpayments and payee debt.

If a payment is incorrectly reconciled, see the Table 7.

If the amounts do not match, check for information received from the employer advising of the actual deductions made for the month. If required contact the employer to gain a breakup of the payments received. Go to Step 6.

Any information received from the employer in writing (by fax or post) is automatically recorded in the View Correspondence window. Record any information received verbally from the employer in the ERR window.

Document discussions with the employer in the Employer Reconciliation Report Summary window notepad relating to that month.

Information from online employer accounts (identified by the ESD indicator on the Organisation window) can be updated via the Child Support online account.

Only the online Employer Services Officers reconcile deductions made through CSBOS by employers. Single Touch Payroll employers send in a submission which details deductions and these can be viewed in the STP Data Submission list window.

Reasons for a variance in the deduction amounts may include:

• The payer is taking holidays and making advance deductions
• The employer may not have received variation letters in time to make alterations to or cease the deductions
• The payer might cease employment
• The payer might take leave without pay
• Deductions might be affected by protected earnings
• The payer may have requested that extra money be deducted, for example, to address arrears
• The pay cycles recorded in Cuba may be incorrect

If there is information provided relating to deductions made and sent however no payments have been received, see Table 3.

If the actual deduction differs from the expected deduction and no deduction schedule or advice has been provided from the employer to explain the variance, check the letters sent to the employer back to the date the latest deduction schedule was sent for the relevant payer. If the employer is deducting a rate from an out-dated letter:

• see Table 4 to advise of the correct deduction amounts
• resend the deduction schedule, see Letters Cuba Process Help

If there are no recent changes to the deduction amounts, see Table 4.

If a payment is missing it may have been made:

• incorrectly to the ATO where the payer’s Tax File Number has been quoted rather than the Child Support Reference Number
• directly to payer/payee or another associated employer
• using an incorrect Child Support Reference Number

Contact the employer to confirm:

• when the payment was made
• how the payment was made
• the payment amount

Check:

• Suspense account, go to Step 2
• Payer Account Summary window, go to Step 3
• if payment has been sent by mail, go to Step 4

If no payments can be located, see Table 4.

A payment will post to the Suspense account if incorrect customer payment reference numbers are provided with the payment. This may occur when:

• spaces or additional text have been included with the reference number
• check digit or head of revenue details have not been included
• an inactive account or incorrect reference number has been used

Search the Suspense account for the amount. A list of payments that match the criteria will display. If the deductions are found in the Suspense Account, create a Payment Enquiry intray. Use the Payment search request macro to record details of the payment in the intray notepad. The intray automatically routed to the Payments Processing Team.

See:

• Suspense Account Management Cuba Process Help
• Intray Management Cuba Process Help

If the missing amount is showing on the Payer Account Summary window, contact the employer to advise them of the correct payment reference number.

If the deductions are located on the Payer Account Summary window or another Employer account:

• reassign the payment to the correct account, and
• route the Pymt Auth Reqd intray to the SSO site position for approval

See Reassign a payment Cuba Process Help.

If the payment was made by mail:

• contact the employer to confirm the date the cheque was posted:
• If more than 7 working days have elapsed ask the employer to stop the cheque and issue a replacement payment
• create an Organisation Follow up intray on the employer to ensure the payment is received

Contact the employer. See Contact with Child Support customers.

Confirm with the employer that they are the correct person to speak to, by asking for their full name and position/title.

If no contact name is listed on the Organisation Contacts window, confirm the appropriate contact details with the employer and update Cuba. See Organisation contacts Cuba process Help.

Note: when speaking to an employer do not divulge payer information to anyone except the known payroll contact person or, in their absence, a colleague that deals with payroll issues.

Discuss the reason the amount received differs from the expected amount. Confirm the break-up of the deductions received for all pay dates in the relevant month for each payer.

If the employer cannot provide the figures verbally, ask them to provide documentation confirming the break-up of the deductions within 2 working days.

If the discrepancy is due to a payment that has been sent but not yet received consider if using top up is appropriate.
Note: use of top up should not be discussed with the employer.

When the reason for the discrepancy is confirmed, reconcile the ERR to the actual deduction amount received using the correct reason code to explain the discrepancy.

Use the Reconciliation template to document the information provided by the employer in the Reconciliation Report Summary window. If top up is used document the information using the Reconciliation template in the Employer Account Summary window.

See Table 5.

Payments that have been deducted and remitted but not yet received can occur when:

• incorrect details may have been provided with the payment and the payment will have posted to the suspense account
• the payment may have been incorrectly made to the payer, payee or another employer’s account

If the employer advises that the remittance was previously sent confirm:

• when the payment was made
• how the payment was made, for example BPAY®, EFT
• the reference number used
• the payment amount

Complete a search for the payments.

If the payment has been remitted, determine if it would be appropriate for top up to be used to complete reconciliation:

• if the employer advised the payment has been remitted and there is a valid notice in place for the amount reported, top up must be used. This can only occur in the month following the deductions, after auto top up has run
• if the use of top up is for a second continuous month, Service Support Officer approval must be obtained using the Top up Approval template, to make sure non-compliance is being addressed. See Resources for the template

Note: top up cannot be used for s72A notices.

Do not discuss the use of top up with the employer.

See Table 5.

If the employer advised amounts have been deducted but not remitted:

• Remind the employer of their obligations to deduct and remit child support. See References for a link to the Child Support Guide 5.2.4
• Confirm that the due date for deductions is the 7th of each month
• Agree on a date for the funds to be remitted (as soon as possible)
• Confirm the amounts deducted for each employee
• Advise the employer that penalties could be applied and they could be fined and prosecuted for failure to remit
• Issue a warning letter to the employer. Use the
• PAD1-8 Warning regarding late remittances - for the first instance of unremitted deductions
• PAD1-5 Warning letter for failure to remit - for consecutive instances of unremitted deductions

Note: there may be other circumstances where the PAD1-5 is warranted, as details of the remittance are included in this letter. Seek assistance from a Service Support Officer (SSO) to determine which letter is appropriate.

Use the Reconciliation Template to document the discussions in the Employer Account Summary, and the relevant month Reconciliation Report Summary window.

See:

• Letters Cuba Process Help for assistance issuing letters, and
• Documenting Child Support information for documentation assistance

If deductions have not occurred despite the advice from the employer, request further evidence such as copies of payslips from the employer or payer. Do not use top up to reconcile the ERR until proof of deduction is received.

If the employer refuses to remit the deductions, go to Step 6.

If confident that the payment is remitted, determine if it would be appropriate for top up to be applied. Do not discuss use of top up with the employer.

See Table 5.

If deductions have not been made, discuss the reasons for the failure to deduct.

Where the employer advises they have not received deduction notification letters:

• check the employers postal address and update if required
• ensure that the payer was appropriately linked
• resend the Schedule of Deductions letters to the employer

If the employer advises they had received deduction letters but did not deduct:

• remind the employer of their obligations to deduct and remit child support. See References for a link to the Child Support Guide 5.2.4
• confirm that the due date for deductions is the 7th of each month
• confirm the next date deductions are due and the amount of the deductions
• advise the employer that penalties could be applied and they could be fined and prosecuted for failure to deduct
• issue a PAD 1-3 Warning Letter for Failure to Deduct to the primary contact for the employer
• if the employer agrees to begin deductions, document all information provided by the employer on a notepad on the summary level of the ERR window and the Payer/Employer Relationship window. See Table 6 .

If the employer refuses to comply, go to Step 6.

Where the employer is refusing to make deductions:

• Remind the employer of their obligations to deduct and remit child support. See References for a link to the Child Support Guide 5.2.4
• Advise them refusal to do so can result in penalties, fines and prosecution
• Request that the payment be deducted and remitted immediately

If the employer agrees to deduct and remit payments:

• Confirm that the due date for deductions is the 7th of each month
• Confirm the next date deductions are due and the amount of the deductions

See Table 6.

If the employer continues to refuse to deduct and or remit payments:

• Issue a PAD 1-3 Warning Letter of Failure to Deduct and PAD 1-5 Penalty Warning for Failure to Remit to the employer
• Apply or review penalties
• Determine if EW is an appropriate method of collection
• Document all information provided by the employer in the Employer Account Summary window
• if the deductions are unable to be confirmed, reconcile the ERR to zero using the reason code DIDN, go to Step 8

For ongoing non-compliance see Employer/Organisation debt repayment

Attempts to contact the employer on different days, at various times and using all available phone numbers. If unable to contact the employer by phone, send a unique letter using the Employer contact letter macro.

If the employer cannot be contacted to determine the reason for a discrepancy between actual and expected deductions:

• Check previous ERRs for an employer remittance pattern
• Check employer notepads, the Communication window and letters, for example, check for a possible s72A payment for another customer
• Check payer windows for letters/phone calls explaining the variance (for employers with a small number of linked payers)
• Search for payments, for example, they may have been made to an incorrect or duplicate account
• If funds received, continue contact attempts and monitor regularly until amounts can be confirmed with the employer

If no deductions received and the employer contact has been unsuccessful, go to Step 8.

Employer Service Officer action

• Reconcile the employer account to zero using the reason code of DIDN
• Create an SNC Investigation request intray and forward date it to prompt further contact in the first week of the following month. If the employer is contacted and more accurate information is obtained, update the reason code on the ERR in the Deduction record Detail window
• Issue a PAD 1-3 Warning Letter of Failure to Deduct to the employer
• If the account is to be reconciled to zero for the second consecutive month, refer the case to the SSO to obtain approval. To refer to SSO, create an SNC Investigation request intray.
• Complete the Rec to Nil Approval template and record in the intray notepad. Note: This template must also be saved to the EAS window notepad and the current ERR notepad
• Route to the SSO team in your site:
• ALBURY/STS1 SSO ALB TM 1/<NONE> intray position
• WOLLONGONG/STS5 SSO WOL TM 1/<NONE> intray position
• DANDENONG/SEW1 ES DAN TM 1/SSO (Select Name)
• DANDENONG/SEW1 ES DAN TM 2/SSO (Select Name)
• Follow normal non-compliance process (Failure to Deduct)

Note: forward Rec to Nil Approvals no later than the last two business days of the month to allow SSO to investigate and approve.

Service Support officer action

• Check:
• appropriate searches for a contact have been completed and documented
• contact attempts on all available numbers have been made
• an Employer Contact letter and/or PAD 1-3 Failure to Deduct letter has been issued
• Update the SNC Investigation request intray with
• approval or
• if not approved, refer to the Subsequent top up and Rec to Nil approval SSO Feedback template and route back to the ESO

See:

• Employer/Organisation debt repayments for information regarding non-compliant employers
• Employer Reconciliation Reports (ERRs) for non STP employers Cuba Process Helps for reconciling the employer account, and
• Intray Management Cuba Process Help for intray creation.

All attempts to contact the employer must be documented in the Employer Communication window and Reconciliation Report Summary window.
See Resources for Employer Services documentation - Where to document.

Update Cuba if the deductions from the employer differ because the:

• employment has ended, go to Step 2
• customer is linked to an incorrect employer, go to Step 3
• pay cycle is misaligned, go to Step 4

Where Child Support is advised that employment has ended, reconcile the ERR. See ERRs for non STP employers Cuba Process Help.

Note: if a customer advises they have left their employment, confirm with the employer if the customer has ceased employment and if further deductions are to be received before delinking.

If the amount received is:

• zero or less than expected, use reason code NEM (the payer has left employment)
• higher than expected, use reason code TERM (indicating that the amount has been deducted from the payer’s termination payment)

Delink the customer from the incorrect employer and re link to the correct one. See Employer withholding (linking) Cuba Process Help.

If a varied amount is received due to a pay cycle misalignment, update the pay cycle. Example the customer is paid fortnightly not weekly or paid on a Tuesday, not a Friday. See Maintain Employer/Organisation Records Cuba Process Help.

If the actual amount received and expected amounts match and there is no excess cash, top up or consolidated revenue debt, automatic reconciliation will occur overnight. When accounts do not reconcile automatically, manually reconcile the payments to the ERR from the Employer Reconciliation Match window.

If no deductions have been made or there is not enough information to proceed with allocating received funds, contact the employer to ascertain the reason for the difference, then use the appropriate reason code in the Reconciliation Report Summary window. Use the Reconciliation template to document the relevant information on the ERR summary notepad in the Reconciliation Report Summary window. See Documentation Cuba Process Help.

Note: when the ERR has been submitted for reconciliation it should be left at INIT status. Cuba will automatically attempt to:

• match the ERR to the incoming payment/s remitted by the employer, or
• apply top up only where the date to use top up has occurred in the month and no payment has been received. See Table 1, Item 4

If the available reason codes do not adequately explain the situation, select the most relevant one and ensure that the document includes a detailed explanation. Record the document in a new notepad on the Summary level window of the ERR.

If the unallocated payments do not match the Net amount required:

• use excess cash if the payment in excess cash comes from the ERR being actioned, or
• use top up if there is no excess cash and the requirements for top up are met.
  See Table 7

The employer may remit more than the actual amount stated in the reconciliation reports to repay top up or an error on the employer’s behalf.

If the reason for the additional payment can be established or the employer has advised of an error and requests the money be held on their account, allocate the amount to excess cash. Create an Excess Cash - Employer intray to follow up on any excess cash by the last business day of the month.

Note: do not allocate a payment to excess cash if the reason for the additional payment is not known.

Update the status to INIT at Summary level in Cuba during or prior to the top up period if:

• all relevant information has been received from the employer, and
• there are no entries on the employer account that would block automatic reconciliation such as s72A payments (these should be created in a separate ERR)

Update the status to SUB at Summary level in Cuba:

• prior to the top up period if:
• all relevant information from the employer has been received
• the employer’s payment has been received, and
• there are entries on the employer account that would block automatic reconciliation such as s72A payments, or multiple payments received from the employer that don’t match
• during the top up period if:
• all relevant information has been received from the employer, and
• there are entries on the employer account that would block automatic reconciliation such as s72A payments, multiple payments received from the employer

For more information, see:

• Employer withholding (linking) Cuba Process Help, and
• Reconciliation Report Summary Window Help

If the variance in the amount deducted is due to the employer deducting amounts from a customer without a linking request, contact the employer to determine why the amount was deducted and if linking is appropriate - see Employer Withholding (linking) for Child Support customers.

If the payment was:

• intended for Child Support, create a new ERR for the payer if the payment has not been received because top up cannot be applied to an ERR where the deduction was not requested
• sent to Child Support in error and the employer requests a refund, go to Step 5

Also, check whether the customer has made any recent contact with Child Support about the deducted amount. For example, have they asked for the payment to be returned?

If the variance is due to another reason, select the appropriate reason code to explain the difference. If the available reason codes do not explain the situation, after employer contact, select the most relevant one and ensure that the document includes a detailed explanation. Document the information in the Reconciliation Report Summary window.

Note: where the actual and expected amounts differ and the employer has submitted the report via the Child Support online account, the accounts will usually reconcile without ESO involvement. If manual reconciliation is required, record the actual amount deducted at the summary level of the ERR. Select the appropriate reason code to explain the variance as advised by the employer.

Online variances are to be followed up from the Child Support Deduction Variation Report.

Refer the refund to the Program Support Manager (PSM) for policy advice in all instances where the:

• money to be refunded was collected in a s72A notice, or
• refund will result in a consolidated revenue debt, or
• the employer has advised they have deducted money from the incorrect payer

If the refund needs to be referred to a PSM, go to Step 6

If policy advise has been received or if a referral is not required, refund the excess funds by:

• direct credit (preferred method)
• cheque issued through Cuba
• cheque issued manually, go to Step 7

See Refunds Cuba Process Help.

If the refund requires policy advice, escalate the issue to a Service Support Officer (SSO) before making any adjustments. The SSO completes the PSM enquiry macro.

Do not give employers an indication of the outcome, until advice is received.

Has the refund been approved?

• Yes, process in Cuba, see Refunds Cuba Process Help
• No, verbally communicate the outcome and reason for the decision to the employer. If phone contact is not possible, consider other methods to advise the employer of the decision. See Letters for Child Support customers, if a unique letter is required

Note: employers do not have objection rights to this decision.

A cheque should only be issued manually if the employer requires documentation for the refund relating to a specific payer. To issue a cheque manually:

• Contact the Payments queue using Services Australia Workspace to obtain a manual cheque number
• Use the Employer account refund template to document details in the Refund Details window notepad, key the refund on Cuba. See Resources for the template. See Refunds Cuba Process Help
• Route the Authorisation intray to a SSO for approval
• If SSO approval is received, create a Payment Enquiry intray, record on the intray notepad:
• Subject heading - Manual Cheque Request
• Cheque number
• Employer name and CSRN
• Amount to be refunded
• Reason for refund
• Name of payer if the refund relates to a payer
• Details to be included in the unique letter to employer when cheque is sent
• Requesting officer, name, user id and phone extension
• Route the Payment Enquiry intray to:
• Region: Victoria and Tasmania
• Office: Albury
• Stream/Team: MC SPT1 PAYMENT PROC
• Position: NONE

If SSO approval is not provided, advise Payment Services the cheque number is no longer required.

Payment Services are to:

• paste details from Payment Enquiry intray notepad onto the CS Manual Cheque Request form. The Resources page contains a copy of the form
• complete Section B and C of Prepare CS Manual Cheque Request form
• prepare manual cheque
• print a copy of Manual Cheque Request form and retain in the Manual Cheque folder
• complete the Manual Cheque Register located on the Payments shared drive
• prepare a unique letter to be attached to the cheque. See Letters for Child Support customers
• send unique letter and cheque
• advise ESO, cheque has been sent

An employer top up can be done:

• automatically
• manually

See Employer Reconciliation Reports (ERRs) for non STP employers Cuba Process Help.

Top up must not be used for expected s72A deductions, see References for a link to the Child Support Guide 5.2.9. Expected deductions for s72A should have a different ERR to EWA. An s72A ERR can be reconciled when payment have been received.

Where top up is used because remitted funds differ from deduction advice or not being received, a discussion with the employer should be held around compliance. The employer should not be advised that top up will be used to cover the deductions.

If the employer does not meet all the conditions for automatic top up, manual top up may be applied:

• if satisfied that the employer has deducted the required amount, however:
• if the use of top up is for a second continuous month approval must be obtained go to Step 3

If the employer cannot be contacted and deductions have been received which do not meet the expected amount, see Table 2, Step 5.

Top up should not be used:

• where cash is available for reconciliation. This includes adjustments to previous months ERRs. Do not make adjustments to previous ERRs using top up prior to the normal top up cycle, which is prior to the second Wednesday of the month. Move the funds to excess cash, then use the ‘cash’ option. For document reasons for moving excess cash in the EAS window. See Documenting Child Support information
• if the employer is a parent company and they remit payments for other employers (subsidiary companies) top up must not be used for reconciliation of the subsidiary company. Reassign the payment that has been credited to the parent company to the subsidiary companies prior to reconciliation to enable the deductions to be credited to the payer. See Reassign a payment Cuba Process Help

Note: Check documentation in the Reconciliation Report Summary window before allocating excess or unallocated cash to an ERR, to confirm the purpose of the payment. Where documentation is not present investigate previous reconciliations to make sure the account has been reconciled correctly before contacting the employer to seek clarification.

Top up can be used from the second Wednesday of each month where the employer advises they have made the deductions but payments have not been received and a valid Section 45 notice is in place.

Document the decision using the Reconciliation template, to apply top up on the relevant months ERR in the Employer Account Summary window and ERR window in all circumstances where manual top up is applied.

Document the source of information that indicates payment has been deducted, the date it can be expected and how the payment is to be made on the Reconciliation Report window notepad. If the notification was:

• written - document the date and type (fax, post or email)
• verbal - document the name and role of the person who provided the information

When satisfied that the deductions have been made reconcile update the ERR to the actual deduction amount expected, and manually apply top up.

Do not reconcile an employer account from information received from a payer without verifying with the employer. Exceptions can occur for non-compliant employers where the payer can provide evidence such as payslips. Refer to the team leader for assessment and approval.

If top up is required for a second continuous month, contact the employer to discuss debt and arrangement for payment if their account has outstanding top up from the previous month.

Payment Arrangement

• Set a firm expectation that payment will be made using Debt Repayment Methodology for ES
• Issue a formal letter, addressed to the Public Officer, detailing the arrangements for payment. Note: allow time when keying the payment date for delays in post and payment processing as some payment methods are slow to be receipted
• Use Services Australia Workspace Softphone for all outbound calls
• Issue warning letters appropriately (address to the correct primary contact for the entity e.g. Public Officer, Trustee, Partner)
• Seek SSO support for imposition of Penalties on Employers

If further use of top up is needed approval is required.

Employer Service Officer action

• Issue a PAD 1-5 Warning Letter for Failure to Remit to the employer
• Complete the Top up Approval template and save to the ERR notepad. Note: this template must also be saved to the EAS window notepad
• For online employers, the Top up decision must be pasted into the ERR notepad

Reconciliation submitted by employer online.

I have made the decision to use S77 of the Child Support (Registration and Collection) Act 1988, as I am satisfied that the deductions have been made, a valid notice is in place, and the deduction has not been paid and am utilising top up as per the Operational Blueprint procedure: Employer withholding reconciliation and top up (CS) 277-04170000

Create an organisation follow up intray, forward date to the next working day. Note: if it’s the last day of first or final disbursement, forward date to the date of creation

Copy the completed Top up Approval template into the intray.

Route to the SSO team in your site:

• ALBURY/STS1 SSO ALB TM 1/<NONE> intray position
• WOLLONGONG/STS5 SSO WOL TM 1/<NONE> intray position
• DANDENONG/SEW1 ES DAN TM 1/SSO (Select Name)
• DANDENONG/SEW1 ES DAN TM 2/SSO (Select Name)

Service Support officer action

• Check:
• appropriate searches for alternate numbers, including other responsible officers have been completed and documented
• contact attempts on all available numbers have been made
• an Employer Contact letter and/or PAD 1-5 Warning Letter for Failure to Remit has been issued

If approval is granted, the SSO will:

• set the ERR to SUB using top up
• document the decision to approve use of s77 in the Reconciliation Report Summary window
• create an SNC Investigation Request intray
• route the intray to the owning ESO to monitor for payment of the debt

If approval is not granted, the SSO will:

• create an SNC Investigation Request intray
• document details of further action required in the SSO Feedback template
• route the intray to the owning ESO

See the Intray management Cuba Process Help Cuba Process Help.

Do not delete the SNC Investigation Request intray until the debt is repaid. See Employer/Organisation debt repayments

Cuba will not recover the original amount used if subsequent adjustments have been made. If the employer has remitted deductions that no longer match the net balance of the outstanding top up, manually reallocate the payment to the top up account.

A manual match of an ERR for reconciliation with top up will only be required if:

• reconciling using part payment/excess cash and part top up, or
• the balance of the top up account does not match the payment made by the employer

If automatic reconciliation has not occurred and the payment has not been received see Employer/Organisation debt repayments and Employer Reconciliation Reports (ERRs) for non STP employers Cuba Process Help.

A reconciled ERR may require adjustment if:

• funds were applied that were subsequently determined to be more than what was actually deducted, go to Step 2
• funds that should have been applied to the account/customer were not made, go to Step 3

To process an upward adjustment see the Employer Reconciliation Reports (ERRs) for non STP employers Cuba Process Help.

Do not adjust up the account if it is prior to the second Wednesday of the month unless the funds are available for use.

Document the decision in the relevant months ERR notepad, using the Employer Account Adjustment template.

If a payer’s account is adjusted down, a consolidated revenue debt may occur. This will depend on whether the funds have already been disbursed to the payee or if the payer’s account is in credit. If the:

• funds are available and have not yet been disbursed to the payee, Cuba will remove the expected disbursement from the payees account to the value of the adjustment. A consolidated revenue debt will not be created
• payment has already been disbursed and there is no excess credit equal to or greater than the adjustment, a consolidated revenue debt will create

Refer any adjustment that creates a consolidated revenue debt to a Program Support Manager (PSM) before the adjustment is made see Table 6, Step 6.

Note: consideration should be given on the length of time that has passed since the ERR was reconciled incorrectly when making a downward adjustment to make sure the payee is not disadvantaged.

If the payer is still linked and deductions are expected:

• to make a downward adjustment in a subsequent month to which ERR adjustment relates to, either:
• reduce the amount reconciled in the current month’s ERR by the excess amount previously applied
• reconcile the current ERR to the correct amount, and process the adjustment down the following day when the funds have applied to the account, but prior to payee disbursement

The funds will be applied to the consolidated revenue debt and reduce amount disbursed to the payee.

The process of applying funds from a current ERR reconciliation to offset the downward adjustment depends on when the current ERR is reconciled:

Reconciliation to occur prior to the 3 business days before the 8th of the month

If the current ERR is reconciled prior to the 5th of the month, the funds for the ERR will not be disbursed overnight and will be available on the payee's account as funds to be disbursed the following day.

Payments from the employer will need to be on the ERR for the account reconciliation to occur.

If the adjustment down is processed the day after the reconciliation the reduction amount will be drawn from the funds to be disbursed, and a consolidated revenue debt will not be created.

If the payee has requested early disbursement, there may be no funds available to be applied to the consolidated revenue debt.

Reconciliation to occur from the 3 business days before the 8th of the month until the end of the month

The funds will be applied to the account and disburse overnight If the ERR is:

• reconciled on or after daily or normal disbursement has commenced
• due to commence on the evening on which the ERR is reconciled, such as 2 business days before the 8th or any day thereafter until the end of the month

A hold payment (EW) is required on the payer to stop the automatic overnight disbursement. Remove the hold the day after the reconciliation and obtain approval for the adjustment down for the funds to be offset.

To process a hold, see the Hold Credit Window Help.

Payments from the employer for the ERR will need to be on the employer account for the reconciliation to occur after the 5th but before the second Tuesday of the month.

Note: if there is no excess cash available on the payer's account, it is appropriate to wait until to the following month if it is expected funds will be available to process a downward adjustment to make sure a consolidated revenue debt is not created.

To process a downward adjustment see the Employer Reconciliation Reports (ERRs) for non STP employers Cuba Process Help.

Document the decision adjustment ERR downwards in the relevant ERR and the payer's Communication window using the Employer Account Adjustment template.

Pend the post reconciliation adjustment. The adjustment in Cuba will remain pending until a decision is made by an SSO.

The follow up action for the recovery of the consolidated revenue debt from the customer is managed by the customer's owning Service Officer or team. Include the following details for the Service Officer:

• The consolidated revenue debt is correct and submitted for approval
• They are required to contact the customer, after the debt has been approved by the SSO, to discuss the details of how the debt was created and negotiate a payment arrangement

Note: if the adjustment results in an offset being required by the SSO, create an Organisation Follow Up intray with a one day due date to make sure the additional actions for the offset are taken. Record details of the offset in the intray notepad.

SSO will:

• check adjustment is documented correctly
• document in the Reconciliation Report Summary window reasons for the decision
• process the authorisation in Cuba, see the Adjust an Employer Reconciliation table in Employer Reconciliation Reports (ERRs) for non STP employers Cuba Process Help
• if an offsetting is required, process the offset in Cuba

If the adjustment is approved, a Pyr Con Rev Debt intray will create on the payer and route to the payer's owning Service Officer/team.

If the adjustment is not approved in Cuba, a Downward Adjustment Not Auth intray will generate on the employer. Record any additional action required by the ESO before they can resubmit for approval in the intray notepad. The intray will automatically route to the ESO who pended the adjustment.

Where the downward adjustment is not authorised:

• review the notepad in the Reconciliation Report Summary window
• take necessary action as advised by the SSO
• repeat the process for each adjustment

Note: although the SSO changed the Status to Not Auth, the reconciliation is still pended awaiting a decision.

Reassign a payment where:

• it has been credited to the payer’s account in error
• the payment from the employer has been credited directly to the payer’s account in addition to a payment being credited to the payer’s account using top up as part of reconciliation. Reassign the payment back to the employer account to recover the top up

See Reassign a payment Cuba Process Help.

Route the Reassign Authorisation Required intray to the site SSO position for approval. A consolidated revenue debt will be created unless there is a credit on the account that will cover the amount of the reassigned payment.

If the payer’s next salary deduction is available, reallocate the deduction to the consolidated revenue debt. Discuss with a SSO or Team Leader prior to reallocation to consider the impacts on the payee.

See the Intray management Cuba Process Help Cuba Process Help.