Child Support Notices Overview

The federal Office of Child Support Enforcement (OCSE) is partnering with NACHA to use the State Tax Change Portal to communicate child support state disbursement unit (SDU) banking changes to affected businesses and payment processors.

Many businesses rely on bank-provided services to pay their employees’ child support payments electronically through the Automated Clearing House Network (ACH) Network. SDUs sometimes change banks or move to a Universal Payment Identification Code (UPIC) and then only notify affected businesses about the changes. It is important that both banks and businesses are aware of the changes to ensure that the child support payments are processed correctly. The lack of direct communication to banks and payment processors about these changes adds risk, costs, and inefficiencies to the process.

The State Tax Change Portal - by NACHA - was developed to:

  • Improve the timeliness and quality of communications between states and service providers regarding changes that affect ACH business payments
  • Provide more lead-time for banks and service providers to implement changes
  • Reduce risk and cost associated with misdirected payments and returns

How Can Banks and Payment Processors Benefit from Using the State Tax Change Portal for notification of state disbursement unit (SDU) changes?

  • Receive timely notices about state disbursement unit (SDU) banking changes
    • Banks and processors often do not learn about payment changes until after their business customers are notified by the state child support authorities. The portal offers states the ability to communicate to all subscribed banks and payment providers at the same time they notify businesses.
  • Update software more quickly, decreasing service disruptions
    • Receiving notifications from the portal should provide more lead-time for making any required software changes.
  • Minimize payment return risk
    • Electronic child support payments that have incorrect information can cause delays and may be returned or rejected. You want to provide a service that assures your business customers that their child support payments will be delivered accurately and on-time.
  • Use the easy registration process to receive email notices.
    • You can register to receive state disbursement unit (SDU) child support payment change notifications as well as other state tax authority changes by simply completing the notification registration form.
  • How Can SDUs Benefit from Using the State Tax Change Portal?

    • Accelerate communications to banks and payment providers through a single site
      • Many subscribed banks and service providers that send electronic child payments on behalf of businesses can be reached through this portal service.
    • Trust in the verification provided by the federal Office of Child Support Enforcement (OSCE)
      • The OCSE is partnering with NACHA to provide this portal service. OCSE will verify the authenticity of a child support payment notice before NACHA disseminates the notice to the subscriber list.
    • Reduce the risk of misapplied payments
      • Notifying banks and service providers about payment changes reduces the risk that you will receive incorrect payment information from businesses paying their child support electronically.

    How can SDUs Submit their Changes?

    • This process does not replace your communications process. Continue notifying businesses about changes that affect electronic child support payments through your regular channels.
    • At the same time, you can communicate the same message to subscribed banks and payment providers. To send an email notice to the distribution list, please send your changes to Robyn Large, Office of Child Support Enforcement, robyn.large@acf.hhs.gov.
Why choose EBIDS? Trust EBIDS to lower costs and extend the reach to customers. Some benefits to Financial Institutions are: Transaction Revenue, Extended ACH Services, Increased Reach, Reduced Costs, Accelerated Time to Market.
Transaction Revenue, Extended ACH Services, Increased Reach, Reduced Costs, Accelerated Time to Market. Trust EBIDS to lower costs and extend the reach to customers. Some benefits to Financial Institutions are: