Thursday, May 17, 2007

Potential trouble for employers and income withholding orders -

I already outlined some potential problems for employers withholding child support payments from employees' wages, here comes another source of potential trouble.

Indiana Code 31-16-15-16(b) requires employers with more than 50 employees and more than one of those employees has an income withholding order to send the payments to the state central collection unit by "electronic funds transfer or through electronic or Internet access made available by the state central collection unit." Failing to do this results in a $25.00 civil penalty per child support obligor per pay period. The General Assembly added the penalty last year.

Those employers having less than 50 employees are not required to pay the withheld child support by electronic means. The Department of Child Services has a page describing its free online processing and also where to send checks for those without the electronic payment requirement.

Employers should also read the The Department of Child Services FAQ (Frequently Asked Questions).

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