CS
720P General Information
11/85 Revised 06/19/25 Training
Completed 07/03/25 Last Reviewed 09/01/26
15 U.S.C. 1673(b), 42 U.S.C. 653a(g)(1) and 654a(g)(A)(i); 45 CFR 303.100, 45 CFR 308.2; Utah Code 26B-9-205, 26B-9-301 through 313, 26B-9-403; R527-300; AT-16-04
This section
of policy contains information on the following items:
·
General
Information
·
Federal
Performance Standards
·
Income
Withholding Categories
·
Income
Subject to Withholding
·
Arrears Payment
Included in Notice to Withhold (NTW)
·
Questions
and Answers
For additional information about income withholding, refer to the
policy subsections listed below:
• CS 720P-1
Income Withholding Definitions
• CS 720P-2
Income Withholding Forms and Packets
• CS 720P-3
Income Withholding Spousal Support and Medical Support
• CS 720P-4
Employer Agency Customer Service Unit (EACSU)
• CS 720P-5
Administrative Withholding Error
General Information
Each state must have procedures for withholding income as a means
for collecting support from a noncustodial parent (NCP) against whom a support
order is or has been issued, adjusted, or modified in the state. Withholding must occur without the need for
any amendment to the support order or any other action by the court or entity
that issued the order, provided the case meets the criteria for income
withholding.
You may not proceed with income withholding unless you have an administrative
or judicial support order. Proceed with
income withholding after a Presiding Officer signs an administrative order or a
judge signs a judicial order.
Federal Performance Standards – Audit Criteria
Federal law found at 42 U.S.C.
653a(g)(1) and 654a(g)(1)(A)(i) requires states to transmit a Notice to
Withhold to an employer within 2 business days of receipt of employment
information from any source (e.g., State Directory of New Hire, National
Directory of New Hire, Quarterly Wage, Unemployment Compensation, or other
source) reported to CSS.
In addition, federal regulations
found at 45 CFR 308.2(c)(3)(iv) states:
“. . .
(A) Two business days after the date information regarding a newly hired
employee is entered into the State Directory of New Hires and in which an
information comparison conducted under section 453A(f) of the Act reveals a
match;
(B) Two
business days after receipt of notice of, and the income source subject to withholding
from a court, another State, an employer, the FPLS or another source recognized
by the State.”
Information from another source
includes information received from the NCP, custodial parent (CP), former
employer, NCP’s relatives, another state agency, or any other employment
source. Employment information must be
verified.
CSS considers the 2-day time
period to begin as of the date the employer information is verified and added to
ORSIS, either automatically (State Directory of New Hire update) or manually.
Income Withholding Categories
Utah
Code 26B-9-303. Provision for income withholding in child support order —
Immediate income withholding:
“(1)
Whenever a child support order is issued or modified in this state the
obligor's income is subject to immediate income withholding for the child
support described in the order in accordance with the provisions of this
chapter, unless:
(a) the court
or administrative body which entered the order finds that one of the parties
has demonstrated good cause so as not to require immediate income withholding;
or
(b) a
written agreement which provides an alternative payment arrangement is executed
by the obligor and obligee, and reviewed and entered in the record by the court
or administrative body.
(2) (a)
In every child support order issued or modified on or after January 1, 1994, the
court or administrative body shall include a provision that the income of an
obligor is subject to immediate income withholding in accordance with this
chapter.
(b) If
for any reason other than the provisions of Subsection (1) that provision is
not included in the child support order the obligor's income is nevertheless
subject to immediate income withholding.”
Utah
Code 26B-9-304. Office procedures for income withholding for orders issued or
modified on or after October 13, 1990:
“(1) With
regard to obligees or obligors who are receiving IV-D services, each child
support order issued or modified on or after October 13, 1990, subjects the
income of an obligor to immediate income withholding as of the effective date
of the order, regardless of whether a delinquency occurs unless:
(a) the
court or administrative body that entered the order finds that one of the
parties has demonstrated good cause not to require immediate income
withholding; or
(b) a written
agreement that provides an alternative arrangement is executed by the obligor
and obligee, and by the office, if there is an assignment under Section
35A-3-108, and reviewed and entered in the record by the court or
administrative body.
(2) For
purposes of this section:
(a) good
cause shall be based on, at a minimum:
(i) a
determination and explanation on the record by the court or administrative body
that implementation of income withholding would not be in the best interest of
the child; and
(ii)
proof of timely payment of any previously ordered support; and
(b) in
determining good cause, the court or administrative body may, in addition to
any other requirement that it determines appropriate, consider whether the
obligor has:
(i)
obtained a bond, deposited money in trust for the benefit of the children, or
otherwise made arrangements sufficient to guarantee child support payments for
at least two months; and
(ii)
arranged to deposit all child support payments into a checking account belonging
to the obligee or made arrangements insuring that a reliable and independent
record of the date and place of child support payments will be maintained.
(3) An
exception from immediate income withholding shall be:
(a)
included in the court or administrative agency's child support order; and
(b)
negated without further administrative or judicial action:
(i) upon
a delinquency;
(ii)
upon the obligor's request; or
(iii) if
the office, based on internal procedures and standards, or a party requests
immediate income withholding for a case in which the parties have entered into
an alternative arrangement to immediate income withholding pursuant to
Subsection (1)(b).
(4) If
an exception to immediate income withholding has been ordered on the basis of
good cause under Subsection (1)(a), the office may commence income withholding
under this part:
(a) in
accordance with Subsection (3)(b); or
(b) if the
administrative or judicial body that found good cause determines that
circumstances no longer support that finding.
(5) (a)
A party may contest income withholding due to a mistake of fact by filing a
written objection with the office within 15 days of the commencement of income
withholding under Subsection (4).
(b) If a
party contests income withholding under Subsection (5)(a), the office shall
proceed with the objection as it would an objection filed under Section
26B-9-305.
(6) Income
withholding implemented under this section is subject to termination under
Section 26B-9-308.
(7) (a)
Income withholding under the order may be effective until the obligor no longer
owes child support to the obligee.
(b)
Appropriate income withholding procedures apply to existing and future payors
and all withheld income shall be submitted to the office.”
Utah code 26B-9-305. Office procedures for income withholding for
orders issued or modified before October 13, 1990:
(1) With
regard to child support orders issued prior to October 13, 1990, and not
otherwise modified after that date, and for which an obligor or obligee is
receiving IV-D services, the office shall proceed to withhold income as a means
of collecting child support if a delinquency occurs under the order, regardless
of whether the relevant child support order includes authorization for income
withholding.
(2) Upon
receipt of a verified statement or affidavit alleging that a delinquency has
occurred, the office shall:
(a) send
notice to the payor for income withholding in accordance with Section
26B-9-306; and
(b) send notice to the obligor under Section
26B-9-207 that includes:
(i) a copy of the notice sent to the payor; and
(ii) information regarding:
(A) the commencement of income withholding; and
(B) the
opportunity to contest the withholding or the amount withheld due to mistake of
fact by filing a written request for review under this section with the office
within 15 days.
(3) If the obligor contests the withholding,
the office shall:
(a)
provide an opportunity for the obligor to provide documentation and, if
necessary, to present evidence supporting the obligor's claim of mistake of
fact;
(b) decide whether income withholding shall
continue;
(c)
notify the obligor of its decision and the obligor's right to appeal under
Subsection (4); and
(d) at
the obligor's option, return, if in the office's possession, or credit toward
the most current and future support obligations of the obligor any amount
mistakenly withheld and, if the mistake is attributable to the office, interest
at the legal rate.
(4)(a)
An obligor may appeal the office's decision to withhold income under Subsection
(3) by filing an appeal with the district court within 30 days after service of
the notice under Subsection (3) and immediately notifying the office in writing
of the obligor's decision to appeal.
(b) The
office shall proceed with income withholding under this part during the appeal,
but shall hold all funds it receives, except current child support, in a
reserve account pending the court's decision on appeal. The funds, plus
interest at the legal rate, shall be paid to the party determined by the court.
(c) If
an obligor appeals a decision of the office to a district court under
Subsection (4)(a), the obligor shall provide to the obligee:
(i) notice of the obligor's appeal; and
(ii) a
copy of any documents filed by the obligor upon the office in connection with
the appeal.
(5) An
obligor's payment of overdue child support may not be the sole basis for not
implementing income withholding in accordance with this part.
Income
withholding is divided into two categories based on when the order was issued
or modified.
1.
Immediate Income Withholding – All orders enforced through IV-D Child Support Services,
current or arrears, which were issued or modified on or after October 13, 1990 are subject to immediate income
withholding. Utah Code 26B-9-303 extended the immediate income withholding
provisions contained in 26B-9-304 to all support orders issued or modified on
or after January 1, 1994, regardless of whether they are being enforced through
IV-D Child Support Services or through private action by the parties.
EXCEPTION: Immediate income withholding is not
applicable if the order includes an exception through a good cause finding or written
agreement that prevents immediate income withholding. An exception may be
negated without a modification of the order.
For details and examples, refer to CS 721P Immediate Income Withholding.
2.
Delinquency Based Income
Withholding – All orders enforced through
IV-D Child Support Services which were issued or modified before October 13, 1990 are subject to delinquency based income
withholding, as per Utah Code 26B-9-305. Initiate income withholding when the NCP has a
delinquency equal to at least one month’s current support. For procedures and
more specific information, refer to CS 722P Delinquency Based Income
Withholding.
NOTE: Advance notice procedures
were eliminated from state law effective July 1, 1997.
Income withholding policies and
procedures also apply to arrears only cases.
Income Subject to Withholding
The payor of income may be an
employer or another source of income to a NCP. For more information, refer to
CS 720P-1 Definitions.
The maximum amount that may be
withheld is established by the Consumer Credit Protection Act (CCPA) (Pub. L. §
303, 15 USC § 1673(b)), which allows for varying deductions depending on the
NCP's circumstances and the amount of arrears due. Current Support and Medical Support must be
collected before an arrears payment.
Generally, income withholding for enforcement of child and medical
support is limited to 50% of disposable income.
However, if 50% of the NCP's disposable earnings do not meet the child
and medical support obligation, you may withhold up to 65% of the NCP's
disposable earnings if the NCP meets the criteria listed below.
1. Criteria for 55% withholding:
a.
The NCP is
supporting a spouse or dependent child other than the child or spouse in this
case;
b.
The NCP has
an arrears in an amount equal to at least 3 months current support; and,
c.
50% of the
NCP's disposable earnings do not meet the current support and medical support
obligation.
2. Criteria for 60% withholding:
a.
The NCP is
not supporting a spouse or dependent child other than the child or spouse in
this case; and,
b.
50% of the
NCP's disposable earnings do not meet the current support and medical support
obligation.
3. Criteria for 65% withholding:
a.
The NCP is
not supporting a spouse or dependent child other than the child or spouse in
this case;
b.
The NCP has
an arrears in an amount equal to at least 3 months current support; and,
c.
50% of the
NCP's disposable earnings do not meet the current support and medical support
obligation.
Verify the NCP's circumstances
and obtain your manager's approval prior to issuing a “Notice to Withhold
Income for Child Support” for more than 50% of the NCP's disposable
income.
If you issue a “Notice to
Withhold” and are also enforcing the health insurance obligation, the total
amount of the current support obligation and the NCP’s costs for the monthly
insurance premium may not exceed the limits set by the CCPA. Refer to the scenarios below.
EXAMPLE 1: You send a Notice to Withhold (NTW) for current support and an
arrears payment of 50% of current and a National Medical Support Notice
(NMSN). The case facts are:
a.
Medical
insurance: The NCP’s monthly expense for
insurance for himself and the child is $180.00.
The child’s portion is $90.00, of which the NCP receives 50% credit =
$45.00;
b.
Current
support = $329.00 ($374.00 child support less $45 insurance credit); and,
c.
Arrears
payment = $187.00 ($374.00 x .50 =
$187.00)
The NCP’s monthly gross income is
$1,440.00. After mandatory deductions
there are disposable earnings of $1,051.20 (.73%). For more information, on mandatory deductions refer to CS 720P-1
Income Withholding Definitions.
NOTE: Use the NCP’s actual deductions if
available. This amount x .50 (CCPA
limitation) = $525.60 available income for withholding. Of this amount, CSS receives $345.60 (since
$180.00 deducted for insurance premium).
$329.00 is applied to current support/insurance credit and $16.60 is
applied to arrears ( = $345.60).
This case meets the requirements
to pay current support and the insurance premium; therefore, do not determine
if the case meets the criteria to increase the withholding to 55%, 60%, or
65%. CSS will not receive the full
arrears amount.
EXAMPLE 2: You send an NTW and include an arrears
payment of 50% of current and a National Medical Support Notice (NMSN). The case facts are:
a.
Medical
insurance: The NCP’s monthly expense for
insurance for himself and the child is $100.00.
The child’s portion is $50.00, of which the NCP receives 50% credit =
$25.00;
b.
Current
support = $349.00 ($374.00 child support less $25.00 insurance credit); and,
c.
Arrears
payment = $187.00 ($374.00 x .50 =
$187.00).
The NCP’s monthly gross income is
$940.00. After mandatory deductions
there are disposable earnings of $686.20, x .50 (CCPA limitation) = $343.10
available income for withholding. Of this amount, CSS receives $243.10 (since $100.00 deducted for the insurance
premium). All of this must be applied to
current.
This case does not currently meet
the requirements to pay all of current support and the NCP’s cost for the
insurance premium; therefore, determine if the case will meet the CCPA criteria
to increase the withholding to 55%, 60%, or 65% in order to meet current
support and the insurance premium. Do
not exceed the 65% cap.
NOTE: CSS limits the withholding of an NCP's Social
Security Retirement (SSR) or Social Security Disability Insurance (SSDI)
benefits to 25% if the SSR or SSDI is the sole source of income and there is no
current support due. CSS may not
withhold from Supplemental Security Income (SSI) or from SSR or SSDI benefits
that are being received concurrent with SSI benefits. For procedures and more information, refer to CS 734P-2 Notice to
Withhold, Social Security Benefits.
If an employer receives multiple NTWs
on the same NCP, the employer must comply with the law of the NCP’s work state in regard to how that state
prioritizes income withholding and distribution. For procedures and more information, refer to
CS 156P UIFSA Enforcement, Direct Income Withholding.
Federal regulations at 45 CFR
303.100 require that in addition to the amount to be withheld to pay the
current month's obligation, the amount to be withheld must include an amount to
be applied toward liquidation of arrears.
However, before you include an arrears payment in the Notice to
Withhold, you must ensure that the NCP has had an opportunity to contest
his/her arrears debt by checking that an “Annual Notice of
Past-due Child Support” has generated on the case and at least 35 days have
passed. “Annual Notices” are generated
each week on new cases and on existing cases that have become delinquent for
the first time, if the qualifying criteria have been met.
EXCEPTION: You may collect
arrears by income withholding before the “Annual Notice” has been sent if the
arrears have been reduced to a sum-certain judgment. The “Annual Notice” is not a legal
prerequisite when enforcing on arrears that have been included in a sum-certain
judgment. This is covered in state law
within Utah Code 26B-9-205. Even if
there is a sum-certain judgment, you may choose to send the “Annual Notice” if
you are unsure as to whether the balance of the judgment is still owed. For example, the case is new and the judgment
is several years old.
If the NCP owes arrears that are not high enough to meet the
automated “Annual Notice” criteria, and you
want to collect these arrears by income withholding, you must contact the NCP
by phone or letter and inform him/her of the arrearage amount. If the NCP does not dispute the amount, you
may collect the arrears by income withholding.
If the NCP disputes the amount, attempt to resolve the amount that is in
dispute. You may also manually generate an “Annual Notice” to the NCP to notify
him/her of the alleged arrears. (You
will need to create a self-alert for follow-up.) However, a manual “Annual
Notice” will not result in coding ORSIS for automatic enforcement, nor will
other automated enforcement actions take place on the case until such time the
case qualifies for an automated “Annual Notice.”
Current Support Only Cases
If the NCP is current and is paid
on a 26 or 52 pay period schedule, DO NOT send the NTW for more than his/her
ordered monthly child support pursuant to 45 CFR 303.100(a)(2) and (3) and
AT-16-04 Correctly Withholding Child Support from Weekly and Biweekly Pay
Cycles.
For example, if the NCP is
ordered to pay $400.00 per month for child support and he is paid on a 26 pay
period schedule, the NTW may only be
sent for $400.00 per month. This means
that ORS will not receive the full $400.00 current support amount most months and
will create a small arrears balance.
EXAMPLE: The total annual amount due and owing on this
case would be 4,800.00 ($400.00 X 12 = $4,800.00). The bi-weekly amount that should be withhold
is $184.62 ($4,800.00 ÷ 26 pay periods = $184.62). With bi-weekly withholding, ORS typically
receives two payments each month which will total $369.24. This will leave a current support balance due
and owing of $30.76 each month. The arrears
balance will continue to accrue each month until the NCP is paid three times
during the month.
NOTE: Withholding an amount that is not based on
the underlying child support order is inconsistent with federal law and
regulations. It is not acceptable to send the NTW for more money each month than what
the current monthly support obligation allows and the monthly amount required
to satisfy arrears.