INCOME WITHHOLDING

CS 735 Notice to Withhold, Procedures for Unemployment Compensation

12/23/84 Revised 08/25/16 Training Completed 07/30/15

45 CFR 302.65; U.C.A. 35A-4-103(5), 62A-11-401 through 414; R527-412

 

 

Introduction

 

State law found at UCA 62A-11-401 through 414 subjects Unemployment Compensation (UC) benefits to income withholding.  Use income withholding in all appropriate cases as the method to intercept UC benefits. 

 

Administrative Rule R527-412-2 states:

1. Unemployment compensation shall be subject to income withholding if the case meets the criteria in R527-300. If for any reason the unemployment compensation is not subject to income withholding, the unemployment compensation may be subject to garnishment.

2. The obligor may volunteer but shall not be required to pay more than 50% of his gross Unemployment Compensation benefit, or the maximum amount permitted under Section 303(b), Consumer Credit Protection Act, 15 USC 1673(b).  If the obligor volunteers to pay more than 50% of the Unemployment Compensation benefit or more than the maximum amount permitted under Section 303(d), Consumer Credit Protection Act, 15 USC 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 non-custodial 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 Non-Custodial Parent

 

The NCP must be notified when UC income withholding is initiated.  Generate and send the Notice to Withhold Income for Child Support:  Unearned Income Withholding Packet, not the standard withholding packet that is used to initiate income withholding with an employer.  Below is a list of forms and letters that are sent to the NCP. 

 

 

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 interstate 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.