Income Withholding Order (IWO) FAQs
If you do not see your question below, please contact us at 866-901-3212 Option: 1.
Frequent Questions Regarding Disposable Earnings and Garnishment Amounts:
What are net disposable earnings?
Net disposable earnings are earnings remaining after mandatory taxes and deductions, including mandatory retirement or union dues, are taken out of an employee’s pay. Therefore, if the employee has voluntarily deductions for 401k plans, or other benefits, these deductions cannot be included in calculating their net disposable earnings.
Some of my employees only work part time. What do I do if 50% of their net disposable earnings is less than the withholding amount for the pay period?
California law requires that you only withhold up to 50% of your employee’s net disposable earnings each month (this withholding limit varies from state to state). If your employee voluntarily agrees to pay more, he or she should first contact our office.
An employee is an independent contractor. Can I garnish his/her wages?
Yes, even if your employee is an independent contractor, these wages must be garnished.
How do I handle lump sum payments such as bonuses, commissions, benefits, and severance payments?
Employers are encouraged to call 1-866-901-3212 for guidance, when they know that an employee will be receiving a lump sum payment.
Bonus and lump sum payments made to employees are considered income and may be garnished to collect past-due child support. Examples include severance, vacation payouts, retirement incentives, commissions, awards, and payments as a result of verdicts. To learn more about reporting special circumstances, please click here.
What do I do if an employee has other non-support income attachments?
Federal, and state laws require child support withholding to take priority over all other income attachments. You must withhold the required amount as long as the amount does not exceed 50% of the employee’s net disposable earnings. An Order/Notice for child support has priority against any attachment, execution or other assignment, except when an IRS tax lien was served prior to the date the child support order was entered.
Questions Employers May Receive From Their Employees:
An employee disagrees with the amount of arrears shown on the Order/Notice. What should I do?
Payments must continue until the employer receives a hard copy termination from our department. Encourage the employee to contact our department at 866-901-3212. Any changes will be mailed to the employer, in the form of an amended Income withholding Order.
An employee would prefer to pay child support directly to the SDU, can I allow this?
No. The employer must comply with the Income Withholding Order.
An employee has asked me not to enforce the Income Withholding Order, as they have contacted the Child Support Department to stop garnishing, what should I do?
Payments must continue until the employer receives a hard copy termination from our department. Encourage the employee to contact our department at 866-901-3212.
An employee told me his/her child support order is illegal because he/she never knew about it. What should I do?
Payments must continue until the employer receives a hard copy termination from our department. Encourage the employee to contact our department at 866-901-3212.
An employee has told payroll that his/her child has turned 18 and/or the arrears are paid in full, and to stop the wage withholding. Should the withholding stop?
Payments must continue until the employer receives a hard copy termination from our department. Encourage the employee to contact our department at 866-901-3212. Any changes will be mailed to the employer in the form of an amended Income withholding Order.
An employee has informed me they have custody of the children. What should I do?
Payments must continue until the employer receives a hard copy termination from our department. Encourage the employee to contact our department at 866-901-3212. Any changes will be mailed to the employer in the form of an amended Income withholding Order.
Other Frequently Asked Questions:
Do any reference guides exist?
Contact us at 866-901-3212, to find out if there is an error in the number or name.
What if the name and/or Social Security Number on the Order/Notice do not match my employee?
No. The employer must comply with the Income Withholding Order.
What if the employee quits work, is laid off, or fired after I begin withholding child support?
If any of the above occur, return the Notification of Employment Termination or Income Status (found within the IWO) or call us at 866-901-3212.
What if I receive phone calls from the other parent about the Order/Notice?
Refer the other parent to us at 866-901-3212. Also, let our office know about any concerns you have with the other parent or guardian. We will work with that person to avoid disruption of the workplace.
Can an Income Withholding Order (IWO) be terminated over the telephone?
No, an IWO form must be used for an IWO termination. Most terminations are sent via mail; however at times, we can also expedite the process by sending them through secure e-mail or over a fax line.
Can you verify the receipt of the payments our company is sending to your office?
Yes. Receipt of payments can be verified by calling: 866-901-3212.
