INCOME WITHHOLDING

CS 720-2 Forms and Packets

11/85 Revised 09/21/15 Training Completed 07/30/15

42 U.S.C. 653a(g)(1) and 654a(g)(A)(i); 45 CFR 303.100; U.C.A. 62A-11-401 to 411, 413 and 414, 502, 504, 11-406(4); Rule 64D(c)(5); and U.C.A. 78A-2-216; R527-300.   

 

 

Automated Notice to Withhold Packet

 

The automated Notice to Withhold (NTW) consists of one packet that contains system generated wage withholding forms and letters to both the employer and the NCP.  The automated packet consists of the following forms and letters:

 

1.                   Employer’s packet.                                            

a.                   Withholding Cover Letter to Employer:  This letter is sent to the employer the first time wage withholding is sent to the employer for the NCP.

b.                  Notice to Withhold Income for Child Support.

2.                   NCP’s packet

a.                   Notice of Income Withholding to the Obligor; or,

b.                  Notice to Obligor – Change in Withholding Amount.

c.                   Notice to Withhold Income for Child Support ;

d.                  Written Response Contesting Income Withholding; and,

 

NOTE:  This form is only included in the packet when it is a new or reinstated case.

e.                  Written Request for Review: Payment Schedule.

 

NOTE:  When an employer is electronic Income Withholding Order (e-IWO) active, the employer will receive the NTW electronically through the e-IWO process.  The NCP will still receive his/her packet via U.S. mail. 

 

 

Manual Notice to Withhold Packets

 

If appropriate, there are two NTW packets that you may manually generate from document generation:  the Earned Income and the Unearned Income packets.  Below is a list of the forms and letters that you will need to include with the manual packets. 

 

1.                   Notice to Withhold Income for Child Support:  Earned Income Withholding Packet.

a.                   Employer’s packet.                                            

i.                     Withholding Cover Letter to Employer:  This letter is sent to the employer the first time wage withholding is sent to the employer for the NCP.

ii.                   Notice to Withhold Income for Child Support.

b.                  NCP’s packet

i.                     Notice of Income Withholding to the Obligor; or,

ii.                   Notice to Obligor – Change in Withholding Amount.

iii.                  Notice to Withhold Income for Child Support;

iv.                 Written Response Contesting Income Withholding; and, 

 

NOTE:  This form is only included in the packet when it is a new or reinstated case.

v.                   Written Request for Review: Payment Schedule.

 

2.                   Notice to Withhold Income for Child Support: Unearned Income Withholding Packet.

a.                   Employer’s packet.                                             

i.                     Withholding Cover Letter to Unearned Income Agency:  This letter is sent to the agency that is providing the unearned income benefits to the NCP.

ii.                   Notice to Withhold Income for Child Support:  Unearned form.

b.                  NCP’s packet.

i.                     Notice of Income Withholding to the Obligor; or,

ii.                   Notice to Obligor - Change in Withholding Amount.

iii.                  Notice to Withhold Income for Child Support: Unearned;

iv.                 Written Response Contesting Income Withholding; and, 

 

NOTE:  This form is only included in the packet when it is a new or reinstated case.

v.                   Written Request for Review: Payment Schedule.

 

NOTE:  When an employer is e-IWO active, the employer will receive the NTW electronically through the e-IWO process.  The NCP will still receive his/her packet via U.S. mail.

 

 

Notice to Withhold Form

 

“UCA 62A-11-406.   Notice to payor.
     Upon compliance with the applicable provisions of this part the office shall mail or deliver to each payor at the payor's last-known address written notice stating:
     (1) the amount of child support to be withheld from income;
     (2) that the child support must be withheld from the obligor's income each time the obligor is paid, but that the amount withheld may not exceed the maximum amount permitted under Section 303 (b) of the Consumer Credit Protection Act, 15 U.S.C. Sec. 1673(b);
     (3) that the payor must mail or deliver the withheld income to the office within seven business days of the date the amount would have been paid or credited to the employee but for this section;
     (4) that the payor may deduct from the obligor's income an additional amount which is equal to the amount payable to a garnishee under Rule 64D of the Utah Rules of Civil Procedure, as the payor's fee for administrative costs, but the total amount withheld may not exceed the maximum amount permitted under Section 303(b) of the Consumer Credit Protection Act, 15 U.S.C. Sec. 1673(b);
     (5) that the notice to withhold is binding on the payor and on any future payor until further notice by the office or a court;
     (6) (a) that if the payor fails to mail or deliver withheld income to the office within the time period set in Subsection (3), the payor is liable to the office for a late fee of $50 or 10% of the withheld income, whichever is greater, for each payment that is late, per obligor; and
     (b) that if the payor willfully fails to withhold income in accordance with the notice, the payor is liable to the office for $1,000 or the accumulated amount the payor should have withheld, whichever is greater, plus interest on that amount;
     (7) that the notice to withhold is prior to any other legal process under state law;
     (8) that the payor must begin to withhold income no later than the first time the obligor's earnings are normally paid after five working days from the date the payor receives the notice;
     (9) that the payor must notify the office within five days after the obligor terminates employment or the periodic income payment is terminated, and provide the obligor's last-known address and the name and address of any new payor, if known;
     (10) that if the payor discharges, refuses to employ, or takes disciplinary action against an obligor because of the notice to withhold, the payor is liable to the obligor as provided in Section 62A-11-316, and to the office for the greater of $1,000 or the amount of child support accumulated to the date of discharge which the payor should have withheld, plus interest on that amount; and
     (11) that, in addition to any other remedy provided in this section, the payor is liable for costs and reasonable attorneys' fees incurred in enforcing any provision in a notice to withhold mailed or delivered to the payor's last-known address.”

Payor’s fee:  Under UCA 62A-11-406(4) (see above) an employer may deduct from an employee’s income an amount in addition to the child support to cover the administrative costs for implementing the withholding. This “fee” must be equal to the amount payable to a garnishee under Rule 64D(d)(ii), Utah Rules of Civil Procedures. The amount set in Utah law (UCA78-7-44) allows $10.00 per single garnishment and $25.00, as a one-time fee, for a continuing garnishment.  Since the “Notice to Withhold Income for Child Support” is a “continuing” process, employers are entitled to deduct a one time $25.00 fee.  However, the total amount withheld from any one paycheck cannot exceed the maximum amount permitted under Section 303(b) of the Consumer Credit Protection Act, 15 U.S.C. Sec. 1673(b).  The payor fee may be deducted all at one time or in increments (e.g., $5.00 per pay period for a total of 5 pay periods).

 

NOTE:  If you determine that an employer is deducting a $10.00 monthly fee, which was the fee amount employers were previously allowed to deduct prior to August 1999, you may send the employer the “Employer Stop Payor Fee” letter.  The letter instructs the employer to stop deducting the $10.00 fee.

 

Remitting payment:  Under UCA 62A-11-406(3) (see above) the payor must mail or deliver the amount withheld to the Office of Recovery Services/Child Support Services (ORS/CSS) within seven business days of the date the absent parent is paid, and must report to ORS/CSS the date on which the amount was withheld from the NCP's wages (payday).  When remitting the payment the payor must provide: the employee/NCP’s name; the employee/NCP’s Social Security Number; and, the amount paid for that employee/NCP.

NOTE:  UCA 62A-11-407(1)(b) states:  A payment of withheld income mailed to the office in an envelope postmarked within seven business days of the date the amount would have been paid or credited to the obligor but for this section satisfies Subsection 62A-11-406(3).”

 

The payor may combine withheld amounts from multiple NCPs into a single payment.  If such a combined payment is made, the payor shall specify the amount attributable to each individual NCP, identified by name and social security number.  If the payor does not send the required information about each NCP, you may send the payor the “Withholding Highlights” letter.  The Employer/Agency Customer Service Unit (EACSU) located in the ORS accounting section also sends these letters.  This letter is a reminder to the payor of the required information that must be sent regarding each NCP.

 

Multiple Notices:  If the payor receives more than one Notice to Withhold for the NCP, all Notices must be honored provided the total withholding does not exceed 50% of the NCP's disposable income or the amount allowed by the Consumer Credit Protection Act.  If one or more of the notices are issued by another state, the payor shall apply the income withholding law of the state of the NCP’s principal place of employment in determining:

·         the payor’s fee for processing income withholding;

·         the maximum amount permitted to be withheld from the NCP’s income;

·         the time periods within which the payor must implement income withholding and forward child support payments;

·         the priorities for withholding and allocating withheld income for multiple child support custodial parents (CPs); and,

·         any term or condition for withholding not specified in the notice.