Starting on October 1, 2005, employers that fail to comply with medical child support notices face new penalties. These are only one provision of Chapter 2005-39, which is a revamping of the state's child support procedures. Here is a look at some of the provisions of the law that affect employers.

Child support remittance. Employers send in $30 million in child support annually to the State Disbursement Unit (SDU), but less than 30% of it is remitted electronically. The bill requires employers that have 10 or more employees, or who pay $30,000 or more in state taxes annually, to remit child support payments to SDU by electronic means. The Department of Revenue (DOR), of which SDU is a part, will adopt rules governing the process.

Paperless transmittal of income withholding and medical support notices. The bill requires DOR to come up with a paperless system to replace delivery of the current 5-page income withholding notice and 12-page medical support notice. By July 1, 2006, DOR must implement an efficient method for employers to electronically access and download income withholding notices and national medical support notices.

DOR will likely follow the example of Texas, which has been successfully piloting a program that allows employers to log on to a secure website and obtain income withholding notices for their employees. The secure website provides employers with a user code and password that allows them to receive notification if an income deduction notice has been issued for one of their employees. It also allows the employer to download the information necessary to begin income withholding. Employer participation will be voluntary.

Medical support. The bill provides a penalty for employers that refuse to enroll children in available health plans after receiving notice of the requirement to do so. After receiving the notice, employers or unions must enroll the child and inform the state either of the coverage or that coverage is unavailable because medical insurance is not offered; the employee has been terminated; or coverage costs exceed the employee's income. Failure to do so subjects an employer, union, or plan administrator to a civil penalty of up to $250 for the first violation or $500 for any subsequent violation, plus attorney's fees and costs. Until now, Florida law provided no penalty in this situation.