INCOME WITHHOLDING

CS 735P Notice to Withhold, Procedures for Unemployment Compensation

12/23/84 Revised 06/28/23 Training Completed 07/12/23 Last Reviewed 09/29/25

45 CFR 302.65; U.C.A. 26B-9-301 through 313, 35A-4-103(5); R527-412

 

 

Introduction

 

State law found at Utah Code Annotated (U.C.A.) 26B-9-301 through 313 subjects Unemployment Compensation (UC) benefits to income withholding.  Use income withholding in all appropriate cases as the method to intercept UC benefits. For additional information, refer to the INCOME WITHHOLDING sections of policy.

 

Administrative Rule R527-412-2 states:

 

 “(1)  Unemployment compensation shall be subject to income withholding if the case meets the criteria described in Rule R527-300.  If the unemployment compensation is not subject to income withholding, the unemployment compensation may be subject to garnishment.

(2)  The obligor shall not be required to pay more than 50% of the disposable earnings from the obligor's unemployment compensation benefit, or the maximum amount  as provided in the Consumer Credit Protection Act, 15 U.S.C. 1673(b).

(3)  If the obligor volunteers to pay more than 50% of the unemployment compensation benefit, or more than the maximum amount provided in the Consumer Credit Protection Act, 15 U.S.C. 1673(b), that agreement shall be in writing.”

 

UC intercepts can only take place through an electronic interface with the Department of Workforce Services (DWS).  The steps in the process are listed below.

 

1.                   ORSIS is coded to intercept the UC benefit. 

 

2.                   Every Saturday the information is sent to DWS.

 

3.                   Every Sunday DWS processes the information and updates its system to perform the UC intercept.

 

4.                   Weekly, DWS withholds the requested amounts and electronically transmits the payments to the Office of Recovery Services/Child Support Services (ORS/CSS).  Due to processing time, the first payment may not be received and posted until the second Wednesday after ORSIS sends the information to DWS.

 

 

UC Intercept Criteria

 

Implement income withholding of UC benefits as soon as the noncustodial parent (NCP) has been approved for the benefits if the case meets one of the criteria listed below.

 

1.                   The order was issued or modified before October 13, 1990 and has or had a delinquency equal to or greater than one month’s current support.

 

2.                   The order was issued or modified on or after October 13, 1990, unless:

a.                   The order includes a finding of good cause; or,

b.                   There is a written agreement providing an alternative arrangement which is signed by both parties and CSS. 

 

If the case does not meet either of the criteria listed above, you may attempt to obtain a written agreement from the NCP for voluntary withholding of the UC benefit.

 

 

Unearned Income Withholding Packet to Noncustodial Parent

 

The Notice to Withhold Income for Child Support:  Unearned Income Withholding Packet includes the following documents:

 

1.            Notice of Income Withholding to the Obligor letter; or,

2.            Notice to Obligor – Change in Withholding Amount letter.

3.            Notice to Withhold Income for Child Support.

4.            Written Response Contesting Withholding form.

5.            Written Request for Review:  Payment Schedule form.

 

 

Interstate UC Intercept

 

CSS has an agreement with DWS to process any incoming unemployment compensation intercept requests from other states.  Another state may not refer a direct UC income withholding request to DWS.  Instead, the other state must ask Utah to do the UC withholding by making a UIFSA intergovernmental referral.  In turn, CSS will refer all unemployment compensation intercept requests directly to the responding state’s IV-D agency, by means of a UIFSA referral.