Income Withholding

Helpful Tips

  • Withholding should begin no later than the first pay period after the order/notice is received.
  • When dealing with multiple orders for an employee, the employer should fulfill the current obligations first before fulfilling the past due obligations.
  • To report a lump sum payment, the employer should consider the following:
    • Is the order from the OAG?
    • Is the lump sum gross payment $500 or more?
    If the answer is “yes” to both questions, the employer must notify the OAG of the lump sum prior to distributing the payment to the employee.
  • A lump sum payment includes when an employee cashes out his/her vacation or other leave time for payment.
  • If an employee has more than one child support obligation, the lump sum payment should be applied equally to all the cases.
  • Lump sum payments and severance pay payments are not handled the same. Severance pay payments are different.
  • When signing up to receive income withholding orders electronically, an employer should use an email address where many people can access to avoid missing an order.
  • Employers have two business days to retrieve the income withholding orders electronically. If not retrieved within that time frame, the orders will be mailed to the employer.
  • The Office of the Attorney General (OAG) maintains an Employer Maintenance Unit (EMU) that contacts employers to follow-up and track Administrative Income Withholding (AIW) orders. Employers who follow these simple best practices can see a reduction of calls or faxes from the EMU:
    • Notify the OAG, as directed by law, of employee terminations timely.
    • Submit child support payments promptly.
    • Obtain Income Withholding Orders electronically.
    • Respond to all calls and faxes from the EMU promptly.

Please Select a Topic