Oct. 23, 2008

What do Michigan's big three automobile manufacturers, major grocery store chains and UPS all have in common?

Many Michigan employers, large and small, are partnering with the state of Michigan to help Michigan's children by collecting child support from their employees through the income withholding process. These partnerships play a critical role in the collection and distribution of child support, as nearly 80 percent of all child support collected through employer withholding.

Gov. Jennifer M. Granholm recently proclaimed October as Child Support Month to recognize the importance of parents meeting their child support responsibilities in strengthening families and providing critical financial support to children.

"The commitment from these employers helps children receive the money their custodial parents need to pay for housing, food and clothing," said Marilyn Stephen, director of the Department of Human Services' Office of Child Support. "During Child Support Month, it's important to recognize that employers play a critical role in keeping children and families out of poverty."

From Michigan's three automobile manufacturers with combined 33,000 child support payments per month, to the small employer who sends in one or two payments a month, Michigan's employers share DHS' commitment to ensuring that the state's children get the child support due them. Many employers submit the payments electronically, a process that reduces errors, shortens the processing time and cuts costs for employers. Once the payment is received, it often can be disbursed to the custodial parent within 24 hours through direct deposit to a client's bank account or to a debit card.

Michigan's child support central collection and disbursement unit, the Michigan State Disbursement Unit (MiSDU), is a federally-mandated entity, established by the 1996 Personal Responsibility and Work Opportunity Reconciliation Act. In 1999, Michigan legislation authorized the MiSDU, which is managed by the DHS Office of Child Support, to receive and disburse child support payments. The MiSDU works in partnership with the county Friend of the Court offices and county prosecuting attorneys.

The MiSDU processed $1.44 billion in collections in the fiscal year ending September 2007, an average of more than $120 million per month. The customer call center, housed at the MiSDU, averages more then 26,000 calls each month from child support clients, employers and friend of the court offices.

Michigan's child support program is considered one of the most efficient in the country. For every $1 spent on program operations, more than $6 in support is collected and distributed. The national average for all states is less than $5 for every $1 in program costs.

For more information, please go to www.michigan.gov/childsupport.