Employer/Organisation debt repayment (CS) 277-04180000

Before contacting the employer to discuss debt repayment:

• investigate the debt to ensure it is accurate:
• review ATO records
• check that Top Up has been used correctly
• take any corrective action, checking
• for unallocated payments on an employer account
• for excess cash credits on an employer account
• if any payments have been incorrectly credited to the customers account
• any duplicate or associated employer accounts
• the suspense account
• employer deductions received
• outstanding Top Up amounts
• amounts previously written off
• debts occurring March 2002 (conversion to Cuba), and
• ensure all relevant penalties have been applied

Note: where the employer is under administration or in liquidation, a Debt Liquidation Officer (DLO) must review the account. Complete the Insolvency referral macro.

Analyse the circumstances that led to the debt and previous debt repayment activities. Check:

• when the debt occurred by reviewing the Employer Top Up window, or the Aged Debt Report
• ERR notepad relevant to the Top Up debt for details as to the decision to apply Top Up
• Employer Top Up window notepad for any previous communication about the outstanding debt
• Record Liquidation window to determine whether the employer is already in liquidation or being managed by a liquidator/administrator
• Recovery/Prosecution Action window for information about any previous legal action taken against the employer
• Payment Arrangement - Organisation window for other payment arrangements made
• Employer Account Summary window for other conversations about Top Up debt
• Employer Communication window for documents relating to employer withholdings
• View Correspondence window for correspondence received from the employer, and
• Employer Payment list for any dishonoured payments that may have caused a consolidated revenue debt

The debt may be the result of:

• a continued pattern of non-compliance, or
• Top Up being used for consecutive months with the employer continually failing to remit

This could indicate the employer has a cash flow problem and may be insolvent.

It may not be appropriate for the employer to continue with employer withholding.

Consider delinking. Seek advice from a Service Support Officer (SSO) before delinking the customer(s).

Review ATO records to determine other possible reasons for non-compliance:

• Has a liquidator/administrator been appointed for an employer?
• Do other tax debts exist?

Document all completed searches in the Employer Account Summary window.

Searches may include:

• Integrated Core Processing (ICP)
• ATO Integrated System (AIS)
• Google
• ABN Lookup
• Electronic White Pages (EWP)

If the employer is insolvent and there are no possible avenues for collection of the outstanding debt, consider non pursuit of debt. See Non-pursuit of employer child support debts.

Review deduction records received from the employer to confirm the total deductions for the relevant period.

If the information was received verbally, contact the employer to discuss the deductions made and confirm:

• the deduction amounts for each lined customer
• the date each deduction is for, and
• if there are any s72A amounts, how much for each customer. Top Up must not be applied to s72A payments

See Employer withholding reconciliation and top up.

Note: Top Up must not be used to support an employer's cash flow problems. Refer such cases to the Intelligence and Investigations Branch. See Step 4 in Table 7.

Before contacting the employer to negotiate a payment arrangement, check the outstanding debt is correct by reviewing:

• the Employer Payment List window to identify unallocated payments on the account. The system default settings in Cuba will only display the last 6 months of payments. Where required, key a backdated start date so Cuba will display payment data for past periods. These payments are also listed in the Reallocate Payments window
• all communication records within the relevant Employer Reconciliation Report (ERR) or Employer Account Summary window and View Correspondence window, and
• any notepads within the Employer Account Summary window

Unallocated payments will display in the Employer Payment List window and the Reallocate Payments window. Where the system has failed to match an unallocated payment, manually allocate the payment to the employer's Top Up account.

If the employer has remitted a single payment which includes current deduction amounts and an outstanding Top Up amount, repay the outstanding Top Up at the same time as matching the payment to the ERR in the current reconciliation process. See Employer Reconciliation Reports (ERRs) for non STP employers Cuba Process Help.

Unallocated payments will display on the Employer Account Summary window and the Unreconciled Employer report as soon as they are credited.

If after allocating the unallocated payments the debt has been cleared, this is the end of the process. Where a debt is still outstanding, continue to investigate and correct the debt.

Check the Employer Account Summary window to establish if there are any excess cash credits on the account. Also check the notepads on the ERR and Employer Account Summary window to determine why the excess cash credits occurred.

If there is nothing documented, or there is no information in the View Correspondence window, contact the employer to establish the reason for the overpayment. If the excess cash is to pay an outstanding Top Up debt, allocate the excess cash.

If a payment has been made in error:

• contact the employer to determine if a refund to the employer is appropriate, or
• if the payment should be held to be allocated with the next month's payment

If the employer wants a refund. See Employer withholding reconciliation and top up.

If the excess cash has been allocated and the debt has been cleared, the process is complete. If the debt is still outstanding, continue to investigate and correct the debt.

Check the Payer Account Summary window to determine if the payment has been incorrectly credited. If it has and the ERR has been reconciled using Top Up, the customer has been paid twice for the same period.

Where this has occurred the expected ERR amount will display on the customer's Client Payments List window as:

• a payment made, and
• an employer deduction

They will be for the same amounts but with different payment types, for example EFT and BPAY ®.

Funds already disbursed

If the funds have already been disbursed, the subsequent adjustment of the ERR could create a consolidated revenue debt on the customer's account. Where this occurs, send a submission for approval to the Service Support Officer (SSO). The SSO must forward the submission to the Program Support Manager (PSM). The PSM will forward to National Intensive Collection Services (ICS) for Program Advice. See Employer withholding reconciliation and top up.

If the outstanding debt has been cleared, this is the end of the process. Where a debt is still outstanding, continue to investigate and correct the debt.

Determine if there are other employer accounts with the same or similar name and view any credited or unallocated payments on these accounts. Check the:

• Employer Payment List window on each account, and
• Unallocated Cash Report which is located in the Employer Services National Share Drive

If there are no unallocated payments, check if the payments received are being reassigned to other employer accounts. This could indicate the employer is:

• using an incorrect EFT code to remit the payments, or
• quoting an incorrect ABN or CSRN on the remittance

In this case, contact the employer to confirm the remittance details.

If unallocated cash payments on duplicate accounts have not been reassigned to the correct employer account (the account with the outstanding debt):

• create a Reassignment request intray
• route to Service Officer’s Team SSO for review and approval

Where customers are linked to duplicate or associated employer accounts, delink and relink them to the correct employer.

Check the ABN the customer is being paid under, before delinking and relinking to ensure the link is to the correct entity. Advise the employer of the correct remittance details to ensure payments are credited directly to the correct account.

For more information about duplicate employer accounts see Employer Withholding (Linking) for Child Support customers.

If the debt:

• has been cleared and the customer is linked to the correct employer, process ends here
• is still outstanding, continue to investigate and correct the debt

If all deductions have not been credited as per the employer's advice, determine if they were credited to the suspense account on or near the date of payment as advised by the employer.

If the payment(s) are located:

• document the information in the Employer Account Summary window, and
• create a Payment Enquiry intray to have the payment reassigned to the employer account

Payment Services will advise when the payment has been allocated to the employer account by creating a Payment Response intray and routing it to the owning ESO. Once the payment appears on the employer account, allocate the funds to the outstanding debt via Employer Reallocate Payments window. Contact the employer and provide the correct EFT code to use.

See Suspense account management.

If the outstanding debt has been cleared this is the end of the process. Where a debt is still outstanding, continue to investigate and correct the debt.

If the employer provided deduction records, check the View Correspondence window to see if any information indicates a cheque was attached. Where there is record of a cheque payment, and more than 4 working days have passed, check the suspense account to see if the payments have been credited. If they have been credited, refer to the Payment Services team for investigation.

See Suspense account management.

If no payment can be located, contact the employer to confirm if the cheque has been presented. If the employer advises the cheque has been presented, complete a referral to the Payment Services team.

To refer either a credited or a missing payment:

• document the information in the Employer Account Summary window
• create a Payment Enquiry intray to have the payment reassigned to the employer account

Has the outstanding debt been cleared?

• Yes, process ends here
• No, continue to investigate and correct the debt.

If the employer has customers currently linked and remits child support deductions regularly, check the outstanding Top Up amount to determine the age of the debt:

• check the Employer Top Up List window to find the last time the employer had a nil balance in the Top Up account. Determine what amount of Top Up was used and recovered each month and use the outstanding balance from that point to determine when the discrepancy occurred
• match debits and credits for each posting to ensure Child Support received and allocated each payment correctly. Correct any errors by adjusting the affected ERRs. If required seek advice from an SSO in reading the Employer Top Up List

Has the outstanding debt been cleared?

• Yes, process ends here
• No, continue to investigate and correct the debt.

Check if the debt amount has previously been written off. If the employer has only recently had one or more customers linked after being 'inactive' for a lengthy period, confirm that:

• the customers should be linked, and
• the customer is linked to the correct employer

Example

An employer has gone into liquidation and is no longer trading. The outstanding debt has been written off as there were no dividends to be paid to creditors including priority or secured creditors. A new organisation has since been established using the same trading name however using a different ABN.

Contact the employer to confirm employment to determine the customer is correctly linked. Where is has been determined the customer has been linked to an incorrect employer, delink and link to the correct CSRN.

In March 2002 all Child Support records were transferred from the old mainframe system into Cuba. Due to implementation issues, payments on employer accounts that were not allocated between 13 - 15 March, were not available to allocate following conversion. These payments are referred to as conversion gap postings.

This resulted in Child Support having to manually create consolidated revenue debts. The payments were reassigned from the payments list to unallocated cash to enable disbursement.

ICT rectified the consolidated revenue debts by crediting excess cash on the 5th April. This excess cash should then have been used to pay back the consolidated revenue debt.

If the employer has a consolidated revenue debt that generated in March 2002, check the postings to ensure:

• all conversion gap postings occurring from 13 -15 March 2002 have been correctly credited with an excess cash posting dated 5 April 2002, and
• the excess cash posting was correctly reallocated to the consolidated revenue account. This can be checked both on the Employer Account Summary window and on the Employer Top Up List window

If the excess cash was used in the reconciliation process and disbursed instead of being reallocated to clear the consolidated revenue account, it indicates cash has been used when none was available. This is the reason the consolidated revenue debt has been created.

If the excess cash was used in the reconciliation and reallocated, check the customer was not credited twice for February 2002 deductions. If there has been a double credit for this period, an adjustment to reduce the appropriate Reconciliation Report by the overpaid amount will be required see Step 4 in Table 3.

If the excess cash was used in the reconciliation and reallocated, check the customer was not credited twice for February 2002 deductions. If there has been a double credit for this period, adjust/reduce the appropriate Reconciliation Report by the overpaid amount. This will create excess cash on the employer account that must be reallocated to clear/reduce the consolidated revenue debt. A consolidated revenue debt will create on the customer's account that is equal to the amount of adjustment on the Reconciliation Report.

Record a notepad on the customer's Communication window explaining how and why the consolidated revenue debt occurred.

If there is a consolidated revenue debt with a posting date that does not refer to the period of conversion, and the posting refers to 'Use conrev for reassignment' this indicates that a single payment has been used twice.

This occurs where an unallocated payment has been matched to a Reconciliation Report and disbursed - which makes the payment allocated. The same allocated payment has then been either:

• reassigned to another employer account
• reassigned directly to a customer account, or
• reallocated to pay Top Up

As the payment has previously been used, the system automatically uses consolidated revenue for the reassignment/reallocation. If the reassigned payment was used to credit the Top Up account, contact an SSO as the consolidated revenue posting may need to be reversed by systems to recreate the previous Top Up debt.

If the outstanding debt has been cleared this is the end of the process. Where a debt is still outstanding, continue to investigate and correct the debt.

All employer contact must be made in line with Contact with Child Support customers. All documents may be used as evidence where any legal action is taken against the employer.

Prepare a suitable payment arrangement before contacting the employer based on:

• the size of the outstanding debt
• the size of the company, for example a large national company, and
• any current deductions that should be being remitted that have not yet been topped up

Make note of the amount of any instalments and length of time it will take to repay the debt.

Note: if the employer has a history of non-compliance, a payment arrangement may not be the most appropriate collection action to take.

When speaking to the employer:

• check if the payment has been made
• establish the reasons for late payment/not deducting and discuss employer obligations
• negotiate a payment arrangement, using Debt Repayment Methodology

When talking to the employer check whether the deductions have been made and sent to Child Support.

The employer advises the remittance was previously sent

Where advised that the remittance has been sent, ask the employer if it was electronic (EFT, BPAY ® etc.) or by mail.

Payment sent electronically

If the employer indicates they have sent the payment electronically, ask the employer to confirm:

• the date the payment was made
• the full amount paid
• whether the correct reference number was used, and
• the receipt number

If the employer has made a payment for withholdings as well as a s72A notice check if they have used the reference number from the s72A notice. The employer may have used the customer’s reference number rather than their own and the payment may be sitting on the customer’s account. Where this occurs the payment requires reassignment to the employer account and may create a consolidated revenue debt on the s72A customer account. Note: if the payment has not yet been received on the customer’s account place a hold immediately to avoid a consolidated revenue debt.

Where a consolidated revenue debt is going to be created on the customer’s account follow the process in Step 4 in Table 3.

Check the suspense account for payment. See Table 3.

If no payment can be located or there are a number of payments for the same amount, send a Payment Enquiry intray to the Payments Services Team.

The intray must include the:

• employer’s name
• employer’s CSRN
• date of payment
• payment amount
• reference number used to make the payment, and
• receipt number if available

The Payment Services team will investigate the payments and then respond by sending a Payment Response intray with the outcome to the requesting ESO.

Payment sent by mail

If the employer advises the payment was made by mail, confirm the date the cheque was posted and if the cheque has been presented. If the cheque has not been presented for payment, request the employer stop payment of the cheque and make a replacement payment, preferably by EFT. Provide the employer with their 16 digit reference number and ask when they will be making the payment. Document your discussion in their Communication window. See Resources page for Employer Services documentation – Where to document.

Monitor to ensure the replacement payment is received.

If the cheque has been presented, confirm the:

• date the cheque was drawn
• cheque amount (this must be the exact amount of the cheque)
• cheque number
• employer BSB and account number (this will appear on the bottom of the cheque), and
• name of the drawer and any reference number that may have been quoted on the cheque or paper work

Document all the details provided by the employer in the Employer Account Summary notepad and create a Payment Enquiry intray including the above information. The Payment Services team will investigate and will respond by sending a Payment Response intray with the outcome to the requesting ESO within 2 working days.

If the payments are located, the Payments Services team will reassign the money to the employer account.

When the replacement payment is received, the ESO must reallocate the payment to pay back the Top Up amount.

Where the employer advises the deductions were made but not sent to Child Support, remind the employer that:

• all deductions made for a particular month must be received no later than the 7th day of the following month
• penalties could be applied, and
• they could be prosecuted and fined for failure to remit

Ask the payment be made immediately.

Confirm the:

• date the payment will be made
• total amount to be paid, and
• method of payment

If the employer cannot make an immediate payment, go to Step 4.

Remission of employer penalties can only be considered in certain circumstances. For more information on remission of penalties, the References page contains a link to the Child Support Guide 5.2.4: Employer obligations for collection from salary or wages..

Advise the employer:

• the amount of the debt
• how the debt has occurred
• how penalties have been applied
• possible penalty remission, provided they meet certain circumstances, the References page contains a link to the Child Support Guide 5.2.4: Employer obligations for collection from salary or wages, and
• where there are linked customers, the payment arrangement must be in addition to any ongoing deduction amounts

When negotiating a debt repayment with the employer negotiate a payment arrangement in the following order of preference.

1. Request payment in full

Tell the employer the total debt amount and request payment in full every time. Do not assume that the employer cannot or will not pay in full.

If the employer indicates they cannot pay in full, discuss the reason and explore all possible avenues to help negotiate payment in full, including:

• using available funds on their credit card
• selling assets, or
• obtaining a loan from a financial institution

If the employer agrees to pay in full, see Step 1 in Table 5.

2. Negotiate payment in 3 instalments

Negotiate payment in 3 instalments, or an initial lump sum plus up to 3 instalments.

The repayment frequency may be weekly, fortnightly or monthly; however, the maximum repayment period is 3 months.

If the employer agrees to pay in 3 instalments, see Table 5.

3. Negotiate an ongoing payment arrangement

The References page contains a link to the Child Support Guide 5.2.3: Collection from salary or wages.

Tell the employer:

• any payment arrangement covering a period greater than 12 months will be reviewed within 12 months from the date the arrangement was made
• if the employer suffers a significant change in circumstances which affects their capacity to make the agreed payments, the employer may negotiate a new arrangement
• if circumstances improve significantly, the employer must contact Child Support to renegotiate the arrangement
• any default in the arrangement without contacting Child Support could result in legal action

After negotiating a debt repayment, see Step 1 in Table 5.

Document the details of the payment arrangement and include:

• name and role of the person who negotiated the arrangement
• type of arrangement:
• lump sum
• 3 instalments
• lump sum plus instalments, or
• ongoing instalments

If the payment arrangement includes instalments, provide details of how the payment plan was determined, including calculations.

• start date of the arrangement
• frequency of instalments
• amount of each payment
• details of any remaining balance that may be subject to a further arrangement
• total amount of payments required including the payment arrangement amounts and current deductions
• consequences of non-payment discussed with the employer, and
• any commitment given to remit penalties

Documentation may form evidence in any legal action.

Record all discussions with the employer including employer obligations and default consequences. See Resources page for Employer Services documentation – Where to document.

If the employer refuses to pay or negotiate an acceptable payment arrangement, see Table 7.

Where attempts to contact the employer have been unsuccessful, conduct the following searches:

• Electronic White Pages Search
• Google search for details on the employer, public officer or directors
• review the Organisation Details window including history and note pads
• attempt to contact past phone numbers, and
• review employer details on ATO systems to gain alternative contact numbers for the business, directors/partners

Where attempts to contact by phone have been unsuccessful, issue appropriate letters (addressed to the Public Officer) and apply penalties where applicable.

Document all action taken in the Organisation Details window and the Employer Account Summary window including:

• attempts to locate alternative numbers, and
• the outcome of searches completed

See Table 7.

Once a payment arrangement has been negotiated, record the details in the Payment Arrangement - Organisation window.

Once the Service Officer has keyed and saved the arrangement a confirmation letter (PAD19-1) will generate to the employer. Check the accuracy of the letter.

A Payment Arrangement indicator will be created and displayed on the Organisation window. This indicator will automatically delete when the arrangement has been satisfied or ended.

For assistance in recording an employer payment arrangement, see Organisation Payment Arrangements Cuba Process Help.

At the end of each month, a batch run will check for employer defaults:

• Where agreed payments have not been received an Org Arrngt Dflt intray will generate
• If payment has not been made in line with the arrangement, go to Step 3

Employer does not pay by the 7th of the month

• contact the employer to discuss the missing payments. Note: if the employer has made an electronic payment on the 7th, it may take up to 5 days to appear on the account
• discuss employer obligations and gain a commitment for payment. Advise penalties will be applied if the payment is not received
• document details of conversation with employer including:
• their name
• the reasons for late payment or failure to deduct
• payment that will be made and
• the advice given that if no payment is received penalties will be applied
• document all unsuccessful contact attempts in the Employer Account Summary window
• if unable to contact the employer or gain a commitment to pay and the employer has deducted but not yet remitted, issue a PAD 1-8 Warning regarding late remittance
• if unable to contact the employer or gain a commitment for payment and the employer has not deducted, issue a PAD 1-3 Warning Letter for Failure to Deduct
• if the employer refuses to negotiate or make payments see Table 7.

Employer has not paid for previous month and for current month

Where the employer has defaulted for a second month:

• contact the employer. Establish the reasons for non-payment and gain commitment for payment of the previous month and the current month amounts. Advised that failure to remit penalties are going to be applied, to the previous month.
• where a payment arrangement is made, record the payment arrangement and monitor for payment. Advise the employer if they default on the arrangement failure to remit penalties will also be applied for the current month.
• document the employer contact and/or unsuccessful contact attempts
• if unable to contact the employer or gain a commitment to pay and the employer has deducted but not yet remitted, apply penalties for the previous month and issue a PAD 1-5 Warning Letter for Failure to Remit, for the current month
• if unable to contact the employer or gain a commitment for payment and the employer has not deducted, apply penalties for the previous month and issue a PAD 1-3 Warning Letter for Failure to Deduct, for the current month

Send a manually generated system letter - PAD1-6 Penalty Letter for Failure to Remit in Cuba to the employer. See Letters for Child Support customers.

If applying penalties for failing to deduct, send a manually generated system letter - PAD1-4 Penalty Letter for Failure to Deduct – Impose Penalty in Cuba to the employer. See Letters for Child Support customers.

When the warning letters are issued, update the Organisation contact details to the Director/Public Officer, Trustee or Partner.

Where a new payment arrangement is negotiated, see Table 5.

Employer has not paid for previous 2 months or has defaulted on payment arrangement

Contact the employer and speak directly with the Director/Public Officer, Partner or Trustee. Explain:

• that penalties for failing to remit have or will be applied, and
• the possible remittance of penalties depending on the circumstances that lead to the employer’s delay in payment

Document the conversation with employer including any contact attempts. This information may be used as evidence in court if the case proceeds to prosecution.

Apply penalties, for more information see Table 6.

Send a manually generated system letter - PAD1-6 Penalty Letter for Failure to Remit in Cuba to the employer. See Letters for Child Support customers.

If applying penalties for failing to deduct, send a manually generated system letter - PAD1-4 Penalty Letter for Failure to Deduct – Impose Penalty in Cuba to the employer. See Letters for Child Support customers.

When considering the application of penalties, if required discuss the case with an SSO.

If ongoing non-compliance continues after penalties have been applied, consider a referral to the Intelligence and Investigations Branch. See Step 4 in Table 7.

For more information on employer penalties and remission or penalties the References page contains a link to the Child Support Guide 5.2.4: Employer Obligations for collection from salary or wages.

Where:

• the ESO was unable to negotiate a new payment arrangement
• the employer refuses to pay, or
• the employer defaults on the payment arrangement for a third time

See Table 7.

Section 51 and Section 52 of the Child Support (Registration and Collection) Act 1988 allows for imposition of administrative penalties on employers for failing to:

• remit deducted amounts to Child Support, and
• deduct from an employee's salary or wage when directed

Employer Penalties can be applied if an employer:

• fails to pay after deducting;
• defaults on an arrangement to pay. For more information on when to apply penalties, see Step 3 in Table 5, or
• refuses to deduct from salary or wages

Check the Employer Penalty Details window to ensure all penalties have been applied for failing to remit or failing to deduct.

Check the Letters List window to ensure the correct penalty imposition letter has been issued, depending on the type of penalties applied.

For more information the References page contains a link to the Child Support Guide 5.2.4 Employer Obligations for collection from salary or wages.

Administrative penalties are a debt payable to the Commonwealth and can only recovered through litigation.

Determine if the employer is a government body or a non-government body. The penalties will be calculated differently as outlined in Section 51 and Section 52 of the Child Support (Registration and Collection) Act 1988. The References page contains a link to the legislation.

To backdate penalties, impose them separately for each month where the employer has failed to remit or deduct.

Use the Employer Penalties macro to document the following:

• The month for which the penalty has been imposed
• The type(s) of penalty/penalties imposed
• Calculation and total of each penalty imposed, including the amount of the unremitted or non-deducted amount and
• Confirmation of penalty warning letter sent

Seek SSO approval for multiple month failure to deduct penalties.

Seek approval from an SSO for complex penalties involving multiple months.

If a referral for Intelligence and Investigations Branch is being approved by a DLO, the penalties must be reviewed by the site PSM.

Where an employer is non-compliant, court action may be taken to enforce the debt or the employer may be prosecuted for failure to remit the payments where the employer:

• refuses to negotiate a satisfactory payment arrangement
• defaulted on an arrangement and cannot be contacted
• defaults on an arrangement a second time, or
• refuses to pay

Child Support can initiate 2 legal options against an employer:

• Litigation - undertaken against an employer for the recovery of unpaid employer deductions and any administrative penalties
• Prosecution - undertaken where the employer has committed an offence such as failing to remit deducted payments under Section 47 Child Support (Registration and Collection) Act 1988. Child Support is unable to collect any penalties through the criminal prosecution process. The intention of prosecution is to establish a criminal conviction and impose fines and court costs

Seek advice from an SSO to discuss if taking legal action is appropriate and delinking the customer(s) where EW is no longer a suitable collection method.

Timely action must be undertaken if considering legal action against an employer to ensure prosecution can be undertaken within the statute limitation of 12 months.

Prosecution of an offence against a Commonwealth law may be time limited.  Offences, which are statute limited, with less than 6 months remaining, are unlikely to be suitable for referral unless there are compelling circumstances.  

Note: Prosecution of offences where the maximum penalty is more than six months imprisonment can be commenced at any time.

Where other customers are linked to the employer, discuss with an SSO whether collection by employer withholding is the most appropriate method, or if the customer(s) should be delinked. When considering if this action is appropriate, take into account whether the employer:

• is remitting current child support deductions in a timely manner and has defaulted on a payment arrangement only, or
• has defaulted on a payment arrangement and is failing to remit current deductions as well

Note: delinking must not occur without prior discussion with Fraud. See Report Suspected Fraud and Corruption.

If the employer is continuing to remit current deductions for the customers, collection by employer withholding should be maintained. End the current payment arrangement and contact the employer to negotiate a new payment arrangement. Impose all penalties for failure to remit up to the current date. See Penalties Cuba Process Help.

Do not continue to use Top Up in the reconciliation process if the employer is failing to remit. For information about the appropriate use of Top Up see the Employer withholding reconciliation and top up.

Where a decision is made to delink customer(s) from an employer and the customer is locked to a Service Officer, phone to advise that follow up action is required.

Advise the Service Officer to:

• advise the customer that collection by employer withholding is no longer available
• explain to the customer that further payment of child support will be their responsibility
• apologise for any inconvenience this may cause and that there is no alternative decision that could be made
• provide other alternatives to the customer for the payment of child support

Because of Top Up payments, customer(s) will not be aware that deductions have not been remitted. Do not breach the employer’s privacy by advising the customer of the reasons that lead to delinking.

Where the employer has continually failed to meet the existing arrangement or is refusing to pay, end the current payment arrangement. See Organisation Payment Arrangements Cuba Process Help.

If the employer is insolvent and there are no possible avenues for collection of the outstanding debt, consider non pursuit of debt. See Non-pursuit of employer child support debts.

If all collection avenues have been exhausted and the employer is still non-compliant, the case may be suitable for referral to Fraud. See Report Suspected Fraud and Corruption.

All steps in this process must be completed before making a fraud referral to the Intelligence and Investigations Branch.

Contact with the employer must be attempted, see Table 4.

Employer is unable to be contacted

• Use all available phone numbers and any alternate numbers found during searches. The contact must be attempted with the officer responsible, for example Public Officer, not the payroll officer, see Contact with Child Support customers
• If the employer is still not compliant and a referral to Fraud is being considered/or has been decided upon, regarding:
• failure to remit, go to Step 6
• failure to deduct, go to Step 7

• Generate an SNC Investigation Request intray
• Complete the template on the Resources page
• Copy the template into the SNC Investigation Request intray
• Documented in the Employer Account Summary window
• Route the SNC Investigation Request intray to:
• Region: NATIONAL OFFICE
• Office: NATIONAL OFFICE
• Stream/Team: MC SEW NAT EMP SERVICES
• Position: A – ES LEGAL NOTICE GATEWAY

After SNC referral

• The employer account must remain locked to the referring Service Officer
• An intray to follow up and create penalties each month must always be on the account

Process ends here

This referral must only occur if no deduction information has been received from the employer and all contact attempts with the employer have been exhausted.

• If contact with the employer to confirm deductions over a period of more than 2 months has been unsuccessful, discuss with an SSO whether to ask the customer’s case officer for contact with the customer:
• Service Officer and SSO must consider if customer contact is appropriate and required, on a case by case basis
• Some of the employer linking letters may be argued to be invalid, if prosecution is proceeded with
• If the SSO approves customer contact:
• check with the customer whether deductions are being made
• if confirmed, request the customer provide evidence including payslips and bank details
• Ensure failure to deduct penalties for the outstanding months have been applied and the appropriate manually generated system letters:
• Seek SSO approval for multiple month failure to deduct penalties
• For more information about applying penalties see Table 6

If non-compliance for failure to deduct continues, refer to the SSO to determine if a s72A can be issued, in place of the link.

• If the SSO determines it is required, they will:
• prepare a Submission to Reissue a Notice and seek delegate approval and signature from National Intensive Collection Services (ICS)
• action the delink and send the s72A

Note: an ESO must not delink without approval from the SSO.

After SSO referral

• The employer account must remain locked to the referring Service Officer
• An intray to follow up and review penalties each month must always be on the account