A Compliance Guide to Child Support Income Withholding
Employers are regularly part of the collection process when an employee is ordered to pay child support or maintenance. Based on state law, a court order for child support shall constitute an assignment of all income, including commissions, earnings, salaries, wages, pension benefits, and other money due. Wisconsin employers may receive an Income Withholding for Support notice that directs a specified amount be deducted from an employee’s earnings and sent to the appropriate governmental disbursement unit. Although income withholding for support is similar to an ordinary payroll deduction, it is a legal obligation that requires accurate and timely processing.
Income Withholding is the Standard, it is Not Limited to Delinquent Employees
Wisconsin law generally requires orders for child support, maintenance, and family support to include immediate income withholding as the method for making regular payments. Courts or their designated child support agencies process the Income Withholding for Support notices as standardized forms. The agencies then provide the notices directly to employers with little to no involvement from the employee.
An employee does not need to be behind on payments before income withholding begins. Current support, past-due support, and annual receiving and disbursing fees are all subject to withholding under Wis. Stat. §767.75. Employers should not interpret an Income Withholding for Support notice as an indication of misconduct or failure to timely pay support obligations by their employees. Employers should also protect the confidentiality of the notice and limit access to those who need the information for payroll, benefits, or legal compliance purposes.
Review the Notice Closely and Promptly
Upon receipt, employers should confirm the identity of the employee and review the notice for the amount and frequency of withholding, remittance instructions, case identifiers, and the issuing agency. Wisconsin withholding notices frequently come from the court or a county child support agency. An employer may also receive an order issued by another state or a tribal child support agency.
Employers should provide the appropriate employee with a copy of the notice. If the employee believes that the information or amount is incorrect, or that no obligation exists, the employee must raise that issue with the issuing child support agency or court, not the employer. The employer must continue complying with the notice received until it receives an amended notice from the court or child support agency.
It is important to note that an employer should not independently modify any withholding amount based on a divorce judgment, a letter from the employee’s attorney, or the employee’s representation that the parties have reached a different arrangement. The employer should only act in response to an official amended withholding notice or termination it receives from the issuing child support agency or court.
Comply With the Provided Deadlines
The Income Withholding for Support form will outline the instructions to comply, including the deadline to begin withholding and to submit the payment to the proper disbursement unit. Wisconsin’s employer guidance from the Department of Children and Families (DCF) provides that withholding must begin no later than the first pay period occurring five working days after the date of the notice. Withheld funds must then be submitted to the Wisconsin Support Collections Trust Fund (WI SCTF) within five days after the withholding date. The information on the specific notice will apply.
Employers should retain the notice, document when it was received, and establish payroll controls to ensure that payments are properly identified and timely transmitted.
Apply Withholding Correctly and Address Employment Changes
A notice may require withholding from wages, salary, commissions, and other forms of income paid out by the employer. If clarification is needed, the notice will provide employers with contact information for the issuer.
If the employee does not earn enough to satisfy the full order without exceeding the limits under the federal Consumer Credit Protection Act (CCPA), the employer should withhold the amount up to the CCPA limit and notify the issuing agency. The unpaid difference remains the employee’s obligation.
When employment ends, the reporting directions contained in the notice must be complied with. Employers must complete the Notification of Employment or Income Status section of the withholding notice. A temporary layoff may require the employer to retain the order for possible reactivation.
Bottom Line
Ultimately, careful processing protects the employer, the employee, and the family members who depend on timely support. A written procedure, trained payroll personnel, and adequate recordkeeping can reduce errors and help employers satisfy their responsibilities.
This article, slightly modified to note recent updates, was featured online in the Great Lakes Employment Law Letter and published by BLR®—Business & Legal Resources. Reproduced here with the permission of BLR®—Business & Legal Resources.
