Why can I just remit child support payments using the same electronic funds transfer process as I use when sending my employees paycheck to his/her bank account?
A. When an employee’s salary is directly deposited into his/her bank account, you obtain the bank account number and bank routing number from the employee. That information is programmed into your payroll system. The payment is transmitted electronically through the Federal Reserve System using a PPD format that makes the payment go to the correct bank, then automatically into the correct person’s account at that bank. When remitting income withholding payments to North Dakota’s State Disbursement Unit (SDU), there is only one bank account number for all child support cases in North Dakota. The SDU does not accept PPD payments, as those payments would become commingled, and the SDU would have no way to determine how much money should be applied to each individual’s case.
Related Questions
- Why can I just remit child support payments using the same electronic funds transfer process as I use when sending my employees paycheck to his/her bank account?
- Can I make payments from the trust bank account using electronic funds transfer (EFT)?
- Am I required to remit child support payments via Electronic Funds Transfer EFT?
