Child Support and the State Disbursement Unit

What is the Illinois State Disbursement Unit?

The Illinois State Disbursement Unit (SDU) is a centralized payment processing center that handles most child support payments and ensures that child support payments are collected and disbursed efficiently and accurately. In Illinois, the State Disbursement Unit (SDU) plays a pivotal role in the process of facilitating child support. This blog post will explore how the Illinois SDU collects and disburses child support, and what both the paying (obligor) and receiving (obligee) parties must do to ensure a smooth process.

 

The Child Support Collection and Payment Process

Step 1: Establish a Child Support Order

Before any payments can be made, a child support order must be established. This can occur through a court order or through an administrative process facilitated by the Illinois Department of Healthcare and Family Services (HFS), Division of Child Support Services (DCSS).

Step 2: Payment Collection

Once a child support order is in place, the obligor (the parent required to pay support) must make regular payments to the obligee (parent receiving child support). There are several ways this can be done:

Income Withholding: The most common method, where the obligor’s employer deducts the child support payment directly from their paycheck and sends it to the SDU. Note, if you are the obligor, it can take several pay cycles before your employer withholds funds. You are responsible for making the payments even though the funds are not withheld from your check. It is best practice to review your paystub to see if funds are withheld from your check. If they are not withheld, you should make a direct payment to the obligee in the amount of the withholding. Once the payments are withheld, you should communicate to the obligee that they are now being withheld from your paycheck so that they can arrange for delivery from the SDU.

Direct Payment: If income withholding is not possible, the obligor can send payments directly to the SDU via check, money order, or electronic payment methods such as credit or debit cards, or online payment services.

State and Federal Tax Intercepts:  The SDU can intercept state and federal tax refunds of the obligor to cover overdue child support if the obligor falls behind on payments.

Step 3: Payment Processing

Next, the SDU receives the child support payments and processes them. This involves recording the payment, allocating the payment to the appropriate child support case, and ensuring compliance with state and federal regulations.

Step 4: Payment Disbursement

Afterwards, the SDU disburses the funds to the custodial parent (the parent receiving support). Disbursements can be made through:

Direct Deposit: Funds are directly deposited into the custodial parent’s bank account.
Illinois Debit MasterCard: A prepaid debit card issued by the state to which child support payments are credited.
Checks: In some cases, payments may be issued via check.

Responsibilities of Each Party

Paying Parent (“Obligor”)
  1. Ensure Timely Payments: It is crucial for the obligor parent to make payments on time to avoid penalties and interest on overdue amounts.
  2. Keep Records: Maintain accurate records of all payments made, including dates and amounts. If future disputes arise as to whether payments were made timely, the obligor has the burden of proof if the parties disagree.
  3. Update Information: Notify the SDU of any changes in employment, address, or payment method to avoid disruptions.
Obligee
  1. Monitor Payments: Regularly check the status of payments to ensure they are received on time.
  2. Update Information: Register with the SDU and keep them updated of any changes in banking information or address to ensure timely disbursement.
  3. Report Issues: Report any discrepancies or issues with payments to the SDU or DCSS immediately.

Common Issues and Solutions

  1. Missed Payments: If a payment is missed, the obligor should contact the SDU or DCSS to report the issue and should rectify the missed payment as soon as possible.
  2. Payment Discrepancies: Both parties should maintain thorough records and contact the SDU for clarification if there are discrepancies in payment amounts.
  3. Delays in Disbursement: This is very common when setting up a new account, or when there are changes such as job changes for the obligor or banking changes for the obligee. It can take 30 days or more for things to process smoothly when establishing a withholding order.

Contact Information:

For more information or assistance, parents can contact the Illinois State Disbursement Unit or the Division of Child Support Services. Your commitment to staying informed and proactive in managing child support payments can make a significant difference in the well-being of your children.

Illinois State Disbursement Unit Website

Division of Child Support Services Website