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Product ID: 400996EAU
 
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Withholding Child and Spousal Support

OnDemand Webinar (87 minutes)

Ensure that deductions for child and spousal support withholding are handled correctly based on state and federal requirements.Employers collect 75% of all child support delivered to state agencies, but the federal Office of Child Support Enforcement (OCSE) sees untapped sources and seeks legislation to expand sources of income placing more requirements upon employers and other payors of income. Employer's statistics show that Withholding Orders for Support represent 50 to 60% of other debt collection. In addition to deducting and paying support, businesses report new hires and rehires; enroll children in health plans; provide special handling of bonus and other lump sum payments including severance pay; and report terminations. Virtually all earnings/income an individual receives is subject to support withholding. Besides the Payroll department, Human Resources, Benefits and Accounts Payable are involved with support. Employer/payors must be prepared to handle multiple support payments for different families or former spouses using the correct state requirements which include withholding limit and priorities for each type of support. Special priority and calculation rules apply when the total of all orders, health insurance premiums, court and attorney fees, and employer fees exceeds the amount available for withholding. Correct withholding becomes more confusing when some orders may be from different states. 15 states require electronic payments, but have different threshold requirements. Even when an employee leaves employment, many states require his/her income withholding order remain active in the event they are rehired. OCSE provides two electronic programs that enhance receipt of IWOs, reporting termination of employment or if an individual was never employed, is on unpaid leave, and will receive a lump sum payment. Federal law requires every state be able to send new or amended IWOs electronically which means it is just a matter of time before states require employers to participate.

Authors

Amorette Nelson Bryant, ABryant Consulting

Agenda

Withholding Child and Spousal Support

• Federal Laws

• Preparing for and Handling Complex Situations

• Case Studies Influenced by Federal Laws

Lump Sum Payments

• Requirements

• Alternative Methods for Reporting

• Withholding Additional Amounts From Lump Sum Payments

Electronic Handling/Streamline the Process

• Receipt of Orders

• Reporting Employee Status Changes/Lump Sum Payments

• Remitting Payments

Withholding From Non-Employee Income

• Sources of Income

• Interaction Between Payroll and Accounts Payable

• Withholding Requirements/Limits