Michigan medical support orders: what reaches your payroll.
In Michigan, county Friend of the Court offices enforce child support orders, but the formula behind the health coverage terms is statewide. Here is how those orders and notices reach employers.
How Michigan orders work.
Statewide Formula, County Offices
Courts must apply the Michigan Child Support Formula, which sets health care coverage criteria statewide. The county Friend of the Court office administers the case and sends notices to employers. Employers in different counties may hear from different offices, but the notices follow the same statewide approach. Keep a log of every notice received, with dates, so payroll and benefits can show what was done.
Cost And Access Tests
Under the formula manual, coverage is presumed accessible if primary care is covered within 30 miles or 30 minutes of the child’s residence. A reasonable cost generally does not exceed 6 percent of the providing parent’s gross income, unless the court orders otherwise.
Fifty Percent Ceiling
A Michigan order or notice directs that the amount withheld for support, fees and health care premiums not exceed 50 percent of the employee’s disposable earnings. When more than one order or fee applies, payroll needs a clear method for staying within the limit. Ask your payroll provider or counsel how to apply it, since the order of priority can matter.
What Michigan employers do.
Enroll Within Twenty Business Days
Within 20 business days after the date of an order or notice, an employer notifies its insurer or plan administrator and takes the steps needed to enroll the child, without regard to enrollment period restrictions, when the child is eligible and the employee or the Friend of the Court applies.
Withhold And Remit
Deduct the required premium share from pay and send it to the insurer or plan administrator. Cash medical support listed on an income withholding notice goes to the Michigan State Disbursement Unit with other support withholding. Benefits and payroll should agree on who deducts, who remits and how the premium share is tracked. Review the notice for payee instructions and keep copies of what was sent and when.
Watch For Changes
When a court modifies a coverage order, the Friend of the Court sends a notice of the change to the employer, insurer or plan administrator. A modified order can change who is covered, the premium share or the end date. Match each new notice to the earlier one, update payroll and enrollment, and ask counsel if the notice is unclear.
Three questions to settle.
Who Receives Friend Of The Court Mail
Name one person for notices from any county office. One designated person helps ensure notices are routed fast and nothing gets lost in a general inbox. Give the office a current contact and name a backup for absences. Review the assignment each year.
Can We Enroll Within The Window
Check that your carrier or enrollment system can add a child within 20 business days. Confirm the process with your carrier or enrollment system in advance, since delays can create problems for the child and the employer. Document each step so you can show timely handling.
Do We Know Our Limits
Confirm how payroll applies the 50 percent ceiling when several orders apply. Payroll rules for multiple orders can be complicated, and mistakes affect an employee’s pay. Write down your procedure and have counsel or your payroll provider confirm it. Keep the written method with payroll procedures.
Common Questions About Michigan Medical Support
Do the criteria differ by county?
The formula is statewide. Each county has its own Friend of the Court office that administers cases, so notices can come from the county where the case sits.
How quickly does the office send the notice?
For Friend of the Court cases, the office will, when appropriate, send a new employer the notice within 2 business days after a new hire report enters the state directory.
Can a child be denied coverage?
No. A child cannot be denied enrollment because they were born outside marriage, are not claimed on the parent’s federal tax return, do not live with the parent or in the insurer’s service area, or are eligible for medical assistance.
Can the employee drop the child?
Not without written proof that the order is no longer in effect or the child will be enrolled in comparable coverage.
Are the formula figures fixed?
No. The formula manual is updated periodically, so check the current version.
Is this legal advice?
No. For an actual order or notice, involve your counsel. We can help you organize your procedures.
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