Employer Payment Methods

Electronic Funds Transfer

Electronic Funds Transfer (EFT) allows a payment to be made within the Automated Clearing House (ACH) network to transfer a child support payment and payment information electronically. EFT can save employers time and money because it reduces data entry errors as well as postage and handling costs.

EFT supports the following:

  • The corporate credit and debit plus (1) addenda record (CCD+) format or Corporate Trade Exchange (CTX 820) format plus (9,999) addenda records
  • The standard addenda record (record 7) format used for child support known as the “DED”

The ACH file formats accepted by most SDUs are CCD+ or the CTX (820). The EFT file formats (CCD+/CTX 820) allows employers to transmit the child support payment from the employer’s bank to OAG or the Texas SDU. The DED addenda record transmits the payment identification information, such as the child support case number and the noncustodial parent’s name and social security number.

Employers may contact their financial institution, payroll provider, or a third party processor to determine EFT capabilities, seek assistance with formats, standards, and technical requirements to implement the CCD+ or the CTX (820) file formats

Employers can take two steps to convert to EFT for quicker, easier child support withholding:

Step 1: Contact the appropriate state child support agency.

  • This is not always the child support agency for the state where the employer resides. It is the agency in the state that collects the child support from your employee, i.e., the state to which you send the income withheld.
  • Find out the EFT/EDI start-up procedures from the state to which you send the income withheld. Please do not transmit child support withholdings electronically without that information.

Step 2: Use the EFT/EDI start-up procedures for each state to which you send child support income withholdings. These typically include the following:

  • An exchange of basic banking information, bank routing codes, bank account numbers, and Federal Information Processing Standards (FIPS) code information with the state child support agency
  • A reconciliation between state records and employer records of social security numbers and case identification numbers so that each employee’s withholdings are properly credited
  • A transmission of an initial test file, or pre-note, to ensure that the automated clearing house records are formatted and transmitted properly

For additional guidance on the CCD+ or the CTX (820) formats, an employer can use the User Guide for Electronic Child Support Payments developed by NACHA.

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