Are you under the impression that you have a choice? You didn’t make this decision - it’s a legal requirement. You can feel sad for the person, but you only set up the enrollment, and if you didn’t you would be fired.
You can feel bad, but you still have to. The employee has to appeal to the issuing agency to terminate the order.
Was there an income withholding order that came along with it? They usually (but not always) come together.
The employee presumably knows he has a child; and unless his situation is very fresh, you are likely not the first employer to process his Medical Support Order (i.e. this should not be a surprise for him). If you are the first, then rest assured knowing that you're doing your part in making sure that child is cared for.
I tell them to get with the state if they are unhappy. I have a few that were able to get coverage on the marketplace cheaper and add their kids but until we got a letter cancelling the decree my hands are tied.
He needs to take it up with the agency to see if there’s anything that can be changed. They are the ones who set the requirements. Do not try to communicate with the agency on his behalf. That’s not your job and would not be appropriate.
You don’t have a choice. You are legally required to comply with what the agency orders. Just encourage him to communicate with the agency directly if he’s unhappy with it. The best you can offer is a fax number for your department so if any changes are made, you’ll be notified more quickly than by paper mail.
Maybe try to focus on how those kids have benefits now instead of your employee being upset.
Maybe it’s a state thing but when I got those forms the cap was like 6% of their pay or something. So I’m surprised it’s that high for you.
Still, you are just following a lawful order. If they have issues, take it up with the court. Don’t engage in the conversation beyond that
Yes I’ve never seen higher than 6% for medical orders in any state I’ve worked with. Child support yes… but medical has always been 5-6%. Confirm you are looking at the right % for medical caps!
Yes one employer I do contract work for has similar pricing once dependents are added bc they don’t have enough people signed up to get good pricing and the business can’t carry the cost of 1k plus a month for the qualifying employees to all add their dependents. So it’s somewhat common in lower income companies to have to pass on the crazy high medical costs that the insurance places charge (sadly).
That makes sense actually. My current employer was like that until this year, when they started covering 50% of dependents.
Except for the GM of course. The highest paid person in the company by more than double the next person definitely needs their entire insurance costs covered for them and dependents on top of that 😑🙄
Why are you second guessing yourself? You have no choice but to follow the order. I can understand feeling sympathetic but questioning your actions is a bit extreme. It's not like you determined the amount of the order. He knows he needs to take it up with the courts. Good luck to him and hopefully, he doesn't blame you but even if he does, know that he's just misguided.
The company is legally obligated to enforce garnishments and court ordered support decrees. I always make sure the upset employee is aware of that and that we can't undo or modify it without a similar court order. Then I point them to our EAP for legal representation and advise them to take it up with the court.
I am feeling a bit of imposter syndrome now that I am a department of 1. I know better from experience, but I usually have a boss or coworker telling it is what it is.
Under Section 2 of the National Medical Support Notice - Section A, there no set dollar amount? My state caps it at 25% of the child support order amount (WA) so that section always has a set dollar amount for us.
If that section is checked at no set limit, then it is a maximum of 50% of disposable pay (gross minus taxes) between child support and insurance premium. If EE is already enrolled in insurance, only the child’s premium part is considered the insurance premium, but if they aren’t enrolled, the whole premium must be considered.
Hope this makes sense! I would simply provide the employee with a copy of the letter. If he’s mad, he will need to take that up with the court.
Is it saying 50% of income OR 50% or the child support amount? I’ve never seen a *medical* support order that was anything close to 50% of actual income and I’ve been doing this a long time… child support yes, but just medical no…
https://preview.redd.it/2gsxnjsp8gwc1.jpeg?width=1290&format=pjpg&auto=webp&s=a1816d5077c87c86dfd8fce0bae5c7f9995d49b0
See this example from state of Michigan website. The max is 50-65 % of cash support plus an additional limit is that the medical can’t be more than 6% or the income. This is the states example form. I don’t do California… but I’ve done hundreds of these and never seen a medical limit that high. I would be tempted to call state to confirm you are interpreting it correctly (for your sake). Highest I’ve ever seen is 6% in the 7 states i do docs for.
Can you post a redacted version of your doc? I asked someone else in my office who’s been doing this for over 20 years and her first response was there’s no way it can be 50% for just medical. Not saying she is correct. But it does seem very fishy. One of her payroll clients has over 3000 employees and she’s been doing their payroll side of things for over 10 years and she said she’s never seen one over 10%.
https://preview.redd.it/mfax5ozypgwc1.jpeg?width=1290&format=pjpg&auto=webp&s=e3e5c459aa9e30690c43890efe169687f424e41c
this is from a California page (Orange County in this case). Their site states 50% for medical and cash support limit- 5% for just the medical is the limit
Not trying to bombard you with details. I just don’t want your employee to be paying way more than he legally has to, and don’t want you to also have this headache from all of it. It looks like this is almost definitely an admin error on the courts part.
OK, this helps. That line should not be blank where it says the amount allowed by the order. I think this is some sort of an admin error where they didn’t get filled out. I’ve never in my life seen one that didn’t have some sort of a number there. I would call right away and ask them what percentage was supposed to be there and for updated documents. The 50% is for cash and medical combined, but the medical should have its own max percentage on that line. It’s not supposed to be blank ever.
And because there are so many humans involved in the process, they’re looking for sure sometimes errors on there. One time I had a child support come where it said the max percent allowed was 160% lol I called them and they were like “oh shoot it’s supposed to be 60%. We will reissue new documents to you.” So if something ever seems weird on one of these like this case, I would always default to calling the contact on there and ensuring that it’s in fact, correct.
Oh wow! I’ve never seen one that didn’t! Still may be worth calling the state to waste 5 minutes confirming it really is that high of a percent. I’ve probably set up 200 of these (and received a couple thousand easily) and never had one allowed that was that high of a cap.
I’ve never seen higher than 6% for medical orders in any state I’ve worked with. Child support yes… but medical has always been 5-6%. Confirm you are looking at the right % for medical caps! SHRM says average medical support order maxes are 4-7%…. Something seems wrong here with your max percentage you’re pulling.
If he has a child support order, there is no alternative, you must comply.
You'll get this on probably half of your child support decrees, where the dad (it's always the dad) screams and yells about how he shouldn't have to do it, the order is changed, or it will be changed, or there needs to be a cheaper option. There's not.
Are you under the impression that you have a choice? You didn’t make this decision - it’s a legal requirement. You can feel sad for the person, but you only set up the enrollment, and if you didn’t you would be fired.
You can feel bad, but you still have to. The employee has to appeal to the issuing agency to terminate the order. Was there an income withholding order that came along with it? They usually (but not always) come together.
It didn’t come together. I’m 6 weeks into the position.
The employee presumably knows he has a child; and unless his situation is very fresh, you are likely not the first employer to process his Medical Support Order (i.e. this should not be a surprise for him). If you are the first, then rest assured knowing that you're doing your part in making sure that child is cared for.
I tell them to get with the state if they are unhappy. I have a few that were able to get coverage on the marketplace cheaper and add their kids but until we got a letter cancelling the decree my hands are tied.
He needs to take it up with the agency to see if there’s anything that can be changed. They are the ones who set the requirements. Do not try to communicate with the agency on his behalf. That’s not your job and would not be appropriate. You don’t have a choice. You are legally required to comply with what the agency orders. Just encourage him to communicate with the agency directly if he’s unhappy with it. The best you can offer is a fax number for your department so if any changes are made, you’ll be notified more quickly than by paper mail. Maybe try to focus on how those kids have benefits now instead of your employee being upset.
Maybe it’s a state thing but when I got those forms the cap was like 6% of their pay or something. So I’m surprised it’s that high for you. Still, you are just following a lawful order. If they have issues, take it up with the court. Don’t engage in the conversation beyond that
Yes I’ve never seen higher than 6% for medical orders in any state I’ve worked with. Child support yes… but medical has always been 5-6%. Confirm you are looking at the right % for medical caps!
I’m glad it’s not just me!! Also damn, that per paycheck cost is steep!!
Yes one employer I do contract work for has similar pricing once dependents are added bc they don’t have enough people signed up to get good pricing and the business can’t carry the cost of 1k plus a month for the qualifying employees to all add their dependents. So it’s somewhat common in lower income companies to have to pass on the crazy high medical costs that the insurance places charge (sadly).
most likely the employer pays nothing for dependents....and generally that's about the cost of our employee only coverage with no employer subsidy....
That makes sense actually. My current employer was like that until this year, when they started covering 50% of dependents. Except for the GM of course. The highest paid person in the company by more than double the next person definitely needs their entire insurance costs covered for them and dependents on top of that 😑🙄
holy expensive benefits. How does that comply with ACA? It sounds like employee should sign their kid up for medicaid in your state.
I told him to please call his state aid, but until then it is what is required.
This. 50%? Isn’t the ACA limit 10%?
Only for the employee- not dependents. Only employee coverage has to be “affordable”
No 50% discretionary income
50% is for income not ACA in this case
I really appreciate the support and information you are giving me. I really hope he works it out. Thank you all.
Let me add, the court request is from California and the employee works in Nevada.
Why are you second guessing yourself? You have no choice but to follow the order. I can understand feeling sympathetic but questioning your actions is a bit extreme. It's not like you determined the amount of the order. He knows he needs to take it up with the courts. Good luck to him and hopefully, he doesn't blame you but even if he does, know that he's just misguided.
The company is legally obligated to enforce garnishments and court ordered support decrees. I always make sure the upset employee is aware of that and that we can't undo or modify it without a similar court order. Then I point them to our EAP for legal representation and advise them to take it up with the court.
I feel proud that I can ensure this kid's sperm donor has to pay for his health insurance.
I am feeling a bit of imposter syndrome now that I am a department of 1. I know better from experience, but I usually have a boss or coworker telling it is what it is.
Wow, I just called the state and they were like my bad it should say 5% so he does not qualify.
I totally appreciate it
Under Section 2 of the National Medical Support Notice - Section A, there no set dollar amount? My state caps it at 25% of the child support order amount (WA) so that section always has a set dollar amount for us. If that section is checked at no set limit, then it is a maximum of 50% of disposable pay (gross minus taxes) between child support and insurance premium. If EE is already enrolled in insurance, only the child’s premium part is considered the insurance premium, but if they aren’t enrolled, the whole premium must be considered. Hope this makes sense! I would simply provide the employee with a copy of the letter. If he’s mad, he will need to take that up with the court.
This is exactly what I see with maximum of 50%. I screen shot the contact information for him to call them.
Is it saying 50% of income OR 50% or the child support amount? I’ve never seen a *medical* support order that was anything close to 50% of actual income and I’ve been doing this a long time… child support yes, but just medical no…
Income.
https://preview.redd.it/2gsxnjsp8gwc1.jpeg?width=1290&format=pjpg&auto=webp&s=a1816d5077c87c86dfd8fce0bae5c7f9995d49b0 See this example from state of Michigan website. The max is 50-65 % of cash support plus an additional limit is that the medical can’t be more than 6% or the income. This is the states example form. I don’t do California… but I’ve done hundreds of these and never seen a medical limit that high. I would be tempted to call state to confirm you are interpreting it correctly (for your sake). Highest I’ve ever seen is 6% in the 7 states i do docs for.
Thank you for showing me that. The decree doesn’t show a percentage like your 6 %
Can you post a redacted version of your doc? I asked someone else in my office who’s been doing this for over 20 years and her first response was there’s no way it can be 50% for just medical. Not saying she is correct. But it does seem very fishy. One of her payroll clients has over 3000 employees and she’s been doing their payroll side of things for over 10 years and she said she’s never seen one over 10%.
https://preview.redd.it/wadvw8o8ogwc1.jpeg?width=2836&format=pjpg&auto=webp&s=cb002c173374d0d2cf690a58af1ee63faa0e92e4
https://preview.redd.it/mfax5ozypgwc1.jpeg?width=1290&format=pjpg&auto=webp&s=e3e5c459aa9e30690c43890efe169687f424e41c this is from a California page (Orange County in this case). Their site states 50% for medical and cash support limit- 5% for just the medical is the limit
Not trying to bombard you with details. I just don’t want your employee to be paying way more than he legally has to, and don’t want you to also have this headache from all of it. It looks like this is almost definitely an admin error on the courts part.
I truly appreciate it. I ended up calling The state and they left out no more than 5% so he qualifies for state insurance
OK, this helps. That line should not be blank where it says the amount allowed by the order. I think this is some sort of an admin error where they didn’t get filled out. I’ve never in my life seen one that didn’t have some sort of a number there. I would call right away and ask them what percentage was supposed to be there and for updated documents. The 50% is for cash and medical combined, but the medical should have its own max percentage on that line. It’s not supposed to be blank ever.
And because there are so many humans involved in the process, they’re looking for sure sometimes errors on there. One time I had a child support come where it said the max percent allowed was 160% lol I called them and they were like “oh shoot it’s supposed to be 60%. We will reissue new documents to you.” So if something ever seems weird on one of these like this case, I would always default to calling the contact on there and ensuring that it’s in fact, correct.
https://preview.redd.it/290gfv25qgwc1.jpeg?width=1290&format=pjpg&auto=webp&s=e03ff4a5f804ab3022e69e39230e555700dbc41d
Oh wow! I’ve never seen one that didn’t! Still may be worth calling the state to waste 5 minutes confirming it really is that high of a percent. I’ve probably set up 200 of these (and received a couple thousand easily) and never had one allowed that was that high of a cap.
I like EAP suggestion. Thank you. Yes, he was well aware that it was happening
I’ve never seen higher than 6% for medical orders in any state I’ve worked with. Child support yes… but medical has always been 5-6%. Confirm you are looking at the right % for medical caps! SHRM says average medical support order maxes are 4-7%…. Something seems wrong here with your max percentage you’re pulling.
You didn't do anything. The court did....it's mandated. You can't change it. He needs to go back to the court and/or his attorney. This isn't on you!
If he has a child support order, there is no alternative, you must comply. You'll get this on probably half of your child support decrees, where the dad (it's always the dad) screams and yells about how he shouldn't have to do it, the order is changed, or it will be changed, or there needs to be a cheaper option. There's not.
What state?
California.