Workforce Development Urges Parents Receiving Child Support to Register for Cost-Saving Service

state.wi.us, Dec 28, 2006

Department of Workforce Development (DWD) Secretary Roberta Gassman today highlighted an added service for parents receiving child support and alimony. Parents can now opt to receive their payments through direct deposit. An added benefit of this service is the potential for the state to save up to $2.2 million each year, if parents elect to use direct deposit for their payments.

The recently introduced service, which offers parents convenience and added security, also provides savings to taxpayers. The service reduces the costs of preparing and mailing checks to custodial parents.

Annually, DWD issues 5.6 million checks to parents. Each check costs approximately $0.46 to print and mail. The cost of direct deposit is $0.06 per check. If all child support checks were issued via direct deposit, the state would realize savings of $2.2 million per year. So far, 25% of all child support recipients had opted to receive their payments via direct deposit, resulting in savings of $560,000.

“This service for child support and alimony payments is a prime example of the Governor's commitment to make government more responsive and to provide services as cost effectively as possible,” said Secretary Gassman. “We are pleased to be able to provide this convenient and secure option for parents while also saving taxpayers money. While we have already realized substantial savings, we would like to encourage even more parents to have their checks directly deposited into their savings or checking accounts.” Read more at state.wi.us