Income withholding is an administrative or court ordered deduction of child and medical support obligations from a parent's income. The employer (or other source of income, i.e., banks, unemployment compensation, workers' compensation, etc.) deducts the specified amount each pay period and sends the payment to the Ohio Child Support Payment Central (CSPC).

Income is defined as "any form of monetary payment, including personal earnings; workers' compensation payments; unemployment compensation benefits....; pensions, annuities; allowances; private or governmental retirement benefits; disability or sick pay; insurance proceeds; lottery prize awards; federal, state, or local government benefits...; any form of trust fund or endowment; lump sum payments; and any other payment in money." [O.R.C. 3121.01]

Note: Under Ohio law, direct payment of child support (from one parent directly to the other parent) is considered a gift. [O.R.C. 3121.45]

All child support cases are now subject to income withholding. However, income withholding is not required for the self-employed unless that individual falls under the definition of an employee under a contract as an independent contractor and who is an individual, the sole shareholder of a corporation, or the sole member of a limited liability company per Revised Code section 3121.89. State law provides for fines against an employer who discharges from employment, refuses to hire, or takes disciplinary action against an employee in response or reaction to withholding for child support.

Income withholding by employers is the single most effective method of child support collection. During state fiscal year 2002, 74% of all child support collections in Ohio came from income withholding.

Income withholding is just like any other automatic payroll deduction, such as withholding for Social Security or state income taxes. It takes priority over all other legal processes against income (including commercial garnishments) except for an IRS lien.

Ohio employers play a vital role in helping secure the financial future of thousands of children. Working cooperatively to withhold and remit child support payments, employers are a valuable resource in our efforts to secure the financial and medical resources to which these children are entitled.

An income withholding order or notice may be Judicial (which originates in the court system and is ordered by a judge) or Administrative (which originates through the local child support enforcement agency's "administrative process" in order to expedite case handling; it is ordered by a child support hearing officer or equivalent; bearing the same authority as a judge.) When child support is ordered for an employee, the employer will receive an Order/Notice to Withhold Income for Child and Spousal Support (JFS 04047). The parent is not required to tell his employer that she/he owes child support.

Upon receipt of an Order/Notice to Withhold Income:

• Document the date of receipt.
• Provide a copy of the Order/Notice to the employee.
• Follow the terms of the Order/Notice.

This Order/Notice requires an employer to do the following:

• Begin withholding the amount indicated no later than the first pay period that falls after 14 business days from the date the order/notice was mailed. The amount may not exceed the limits set by the Consumer Credit Protection Act (CCPA) and similar state laws.
• Send the amount withheld to Ohio Child Support Payment Central (CSPC) no later than seven business days after it is withheld.
• Continue to withhold until official notification to stop. Do not stop withholding for child support until official notification is received from the Child Support Enforcement Agency (CSEA) or the court to stop or to make a change to the withholding.
• Notify the county CSEA of any change that results in ceasing of payments to the obligor (resignation, termination, layoff, retirement, etc.)

An income withholding may come from within the employer's state, or directly from another state. If from another state, it is called "direct income withholding" because it comes directly from another state to the employer, rather than going through the child support enforcement agency in the employer's state. See section Direct Interstate Income Withholding for more information.

Top of the Order/Notice:

• Contains information about where the Order/Notice is from and to whom it applies (State/County/City/District, Date of Order/Notice, Court or Case Number, Employer's Information, Employee's Name, Social Security Number, and Case Number)

• Provides information about what payments should be withheld. It provides totals, then breaks down payments to accommodate different payroll cycles, It includes current support, arrears, medical support and other data (such as court fees).
• Note that medical support can be ordered on this Order/Notice.

• Provides the information necessary to start withholding. This information follows state law of the issuing state. Most of the time the issuing state will be where the employee works.

• This page is mostly informational

This should be a straightforward process for most child support income withholding orders. The amount to withhold follows the terms of the order/notice and cannot exceed the employee's allowable disposable income.

1. Calculate disposable income: gross pay minus deductions.
2. Calculate allowable income: Consumer Credit Protection Act (CCPA) limits (%) applied to disposable income + maximum withholding allowed for child support purposes.

• Pre-tax Deductions (elective deductions) - Add back before calculating allowable disposable income.
• Imputed Income (fringe benefits) - subtract before calculating allowable disposable income.
• Tips - Add "reported tips" that passed through employer's hands before calculating allowable disposable income.

In addition to deducting the ordered amount from an employee's regular pay, Ohio law requires an employer to contact the CSEA in the following circumstances:

• the employee is to be paid a lump sum for workers' compensation benefits, severance pay, sick leave, retirement benefits or contributions, bonuses, or profit sharing payments or distributions; and
• the lump sum payment is for $150.00 or more to the employee/obligor (actions can be taken optionally on amounts under $150.00)

Lump Sum payments are income other than personal earnings that the obligor is receiving, or is eligible to receive, as a benefit of employment or as a result of termination of employment.

A "lump sum" payment refers to any payment to the employee in excess of $150 that is not part of regularly scheduled wages. Other examples of lump sum include employee buyout packages, incentives, bonuses, and cash out of vacation pay. "Cash out of vacation" pay means income disbursed to an employee in lieu of actual vacation or leave taken. Any cash out of vacation pay is considered a lump sum payment and shall be processed in the same manner as any other lump sum payment.

Steps in handling a Lump Sum:

• Ohio law requires an employer to notify the county CSEA 45 days prior to the payment, or as soon as the decision is made to make the payment, should that be less than 45 days. The issuance of the check should be held for 30 days after the intended payment date. This allows the CSEA adequate time to determine if any portion of that lump sum payment should be applied/withheld for child support payment.
• Once a determination is made, the CSEA will issue an order of payment for whatever portion is considered owed as child support.
• Send the ordered amount to CSPC.
• Any such payment should include the words "lump sum" on the check to ensure the payment is applied properly and is distinguishable from a standard withholding
• If arrearages are involved, do not break out the arrearages, just indicate the full lump sum payment amount withheld per the county order.

For questions regarding remitting lump sum payments, please contact the issuing county CSEA's lump sum contact as found on the County Lump Sum Contact List.

An employer may have an employee who has more than one case and order and therefore will receive multiple order/notices to withhold income. Federal law requires that some money will be paid to each order for current support. The employer may need to prorate the amount due. Please refer to the withholding order/notice, JFS 04047 for additional details.

Normally, when an employee is being paid his or her regular earnings, the full amount of the order can usually be withheld. It is only when the paycheck falls short due to special circumstances that the employer may not be able to withhold the full ordered amounts.

However, sometimes an employee's earnings do not stretch far enough to pay all his or her claimants. There are specific laws governing who is to be paid first. There are also laws protecting the employee from having his or her entire paycheck turned over to a third party. The Consumer Credit Protection Act (CCPA) is a federal law that serves as the minimum protection to the employee. The CCPA limits on withholding an employee's paycheck do not forgive the debt owed.

When withholding is limited by CCPA, the employer must prioritize when:

• Multiple orders are received
• There are child support orders and other garnishments (for debt)
  • Rule of Thumb: child support income withholding must be paid before all other garnishments
  • Note that not only do income withholding orders take precedence over other garnishments, much more money can be withheld for child support than for other garnishment debt
• There are child support orders and other involuntary deductions (i.e., tax levy, bankruptcy)
  • Rule of Thumb: Federal tax debt does take precedence over a child support order if it was served first. The Internal Revenue Service (IRS), however, has stated its willingness to accommodate child support withholding orders that are served after the IRS levy. It is up to the employee to request this from the IRS. It is a good idea for the employer to notify the child support agency of the pre-existing tax levy. The agency has no way of knowing that there is an existing IRS levy.
  • Even if an employee declares bankruptcy, he is still obligated to pay child support. Debts due for delinquent child support are not dischargeable in bankruptcy actions.
  • An employer may be notified, however, that it is no longer responsible for withholding the payments because a trustee of the bankruptcy court may take over this task. Continue withholding until official notification from the agency or bankruptcy court is received.
• Involuntary deductions that never take precedence over child support withholding (even if the child support withholding order/notice was served after the involuntary deduction):
  • Nontax federal debt (e.g., Administrative Wage Garnishment)
  • State and local tax levies
  • Creditor garnishment (e.g., garnishment from a store like Sears)
  • Assignment of wages (e.g., when taking out a loan, a person can voluntarily sign over his future wages to pay a creditor in the event he defaults on the loan).

How to prioritize:

1. For multiple orders, refer to your withholding order/notice
2. Allocate a percentage to each order based on the total dollar amount of the current support orders

If there is any allowable disposable income (that is, disposable income that falls within the CCPA limits for withholding) left over, then payments for arrears can be withheld up to the remaining balance.

1. How long after I receive notice do I begin withholding?
2. When do I send in the withheld payments?
3. What is the maximum amount of money I can withhold from my employee's paycheck?
4. What do I do if my employee has multiple income withholding orders and doesn't earn enough to pay the current support on all the orders?
5. What do I do if my employee's hours are cut back temporarily and the child support payments are reduced?
6. May I combine the child support payments of several employees on the same check
7. How do I know when to stop withholding?
8. May I refuse to hire someone who has a withholding against his/her wages?
9. What if I don't carry out the withholding?
10. What should I do if my employee tells me the amount being withheld is not the correct amount or he/she already paid the child support directly to the custodial parent?
11. What do I do if my employee is going to be evicted from his/her home if I withhold wages for child support? May I temporarily stop withholding for child support? May I temporarily stop withholding until my employee gets back on his/her feet?
12. What if an employee becomes ill or injured and cannot work?
13. What do I do if my employee quits, is fired, or laid off?
14. Income withholdings required extra work for my company. May I charge a processing fee to my employees?
15. Some of our employees already have wage attachments against their paychecks. How do we handle these attachments and child support?
16. When I send wage withholding payments, what date should I report as the withholding date?
17. Is an employee who has declared bankruptcy still liable for child support payments?

1. Q. How long after I receive notice do I begin withholding?
   
   A. Withholding must begin no later than the first pay period that occurs after 14 days following the date the notice was mailed to you. O.R.C. 3121.03
   
   
2. Q. When do I send in the withheld payments?
   
   A. O.R.C. 3121.03 and 3121.037 require you to forward the withheld payment immediately but no later than 7 working days after the withholding.
   
   
3. Q. What is the maximum amount of money I can withhold from my employee's paycheck?
   
   A. The Federal Consumer Protection Act (CCPA) (15 U.S.C. 1673(b)), sets the maximum amount that may be withheld from an employee's paycheck. The federal withholding limits for child support and alimony are based on the Aggregate Disposable Weekly Earnings (ADWE) of the employee. The ADWE is calculated by taking the employee's gross earnings (wages, bonuses, commissions and pensions) and subtracting taxes and mandatory retirement deductions. Health insurance premiums, union dues, other child support garnishments and money owed to the employer are not deductible when determining the ADWE. Ohio law requires that this maximum be followed.
   
   The federal CCPA limit is 50 percent of the ADWE if the employee supports a second family and 60 percent if the employee does not support a second family.
   
   This limit increases to 55 percent and 65 percent respectively if the employee owes arrearages that are 12 weeks or more past due.
   
   Refer to page 4 of the Order/Notice to Withhold Income for guidelines.
   
   
4. What do I do if my employee has multiple income withholding orders and doesn't earn enough to pay the current support on all the orders?
   
   A. O.R.C. 3121.034 contains a formula which employers must use to determine how to allocate the available funds. If the amounts for current support on all orders exceed the applicable CCPA limit, allocate to each order a percentage of the current support ordered based on the following formula:
   
   total $ available for income withholding
   total $ of current support
   
   If the total amount designated as current support does not exceed the applicable CCPA limit, pay current support on all orders and pay a percentage of the past due support on all orders and pay a percentage of the past due support on each order based on the following formula:
   
   total $ available for withholding after paying current support
   total $ due on all orders for past due support
   

   Note: In such circumstances, employers are advised to work with the local CSEA to obtain data needed to accurately calculate the amount to be withheld.

   
   
   
5. Q. What do I do if my employee's hours are cut back temporarily and the child support payments are reduced?
   
   A. If the full amount of the support order can be paid without exceeding the applicable CCPA limit, you must withhold the required amount despite the employee's reduced pay. If not, you must withhold an amount equal to the CCPA limit as described above. If your employee will have reduced income for a period of time, he or she should be advised to contact the local CSEA and request that the support order be reviewed and modified based on a change of circumstances. Modification cannot occur retroactively, so the employee should act quickly if the circumstances warrant.
   
   
6. Q. May I combine the child support payments of several employees on the same check.
   
   A. Yes. Even if you receive multiple monthly billing statements, you may remit one payment for all employees for whom you have an active income withholding order/notice. You may do any of the following:
   1. Send one payment with each statement
   2. Include multiple statements into one envelope with one check that "covers" all statements
   3. Prepare your own list with the Employee Name, Social Security Number, SETS Case Number, Order Number, and Amount for each employee and remit one or more payments.
   
   
   
7. Q. How do I know when to stop withholding?
   
   A. You should continue to withhold income until the child support enforcement agency or court notifies you to change or stop the withholding.
   
   
8. Q. May I refuse to hire someone who has a withholding against his/her wages?
   
   A. No. An employer is subject to a fine up to $500 for discharging the obligor from employment, refusing to employ the obligor, or taking any disciplinary action against the obligor because of withholding for child support. O.R. C 3121.39
   
   
9. Q. What if I don't carry out the withholding?
   
   A. If the employer fails to withhold income in accordance with Ohio law, the employer is liable for the accumulated amount that should have been withheld. In addition, the court may fine an employer up to $200 for failing to withhold personal earnings. O.R.C. 3121.037 and 3121.03.
   
   
10. Q. What should I do if my employee tells me the amount being withheld is not the correct amount or he/she already paid the child support directly to the custodial parent
    
    A. You should tell your employee to contact the child support enforcement agency or court. You must continue to withhold wages, according to the Order/Notice, until you are notified by the child support enforcement agency or the court to change the amount being withheld or stop withholding.
    
    
11. Q. What do I do if my employee is going to be evicted from his/her home if I withhold wages for child support? May I temporarily stop withholding for child support? May I temporarily stop withholding until my employee gets back on his/her feet?
    
    A. You must continue to withhold wages according to the Order/Notice. Advise your employee to contact the CSEA immediately to discuss his/her concerns.
    
    
12. Q. What if an employee becomes ill or injured and cannot work?
    
    A. If an employee becomes ill or injured and cannot work, notify the CSEA or court that sent you the income withholding Order/Notice. Provide the employee's name and Social Security number and the name and address of any entity paying workers' compensation or disability benefits.
    
    
13. Q. What do I do if my employee quits, is fired, or laid off?
    
    A. You must notify the CSEA that sent the Order/Notice, of the name of the employee, employee's SETS Case Number, date of separation from employment, last known home address, and the name and address of the employee's new employer. You must continue to withhold wages through the employee's final paycheck. If the employee returns to work for you, you must report that person as a new hire and begin withholding child support payments again.
    
    
14. Q. Income withholdings required extra work for my company. May I charge a processing fee to my employees?
    
    A. Yes, you may charge up to $2.00 for wages and $5.00 for financial institution withholdings, or an amount not to exceed 1% of the amount withheld for support, whichever is greater. O.R.C 3121.18
    
    
15. Q. Some of our employees already have wage attachments against their paychecks. How do we handle these attachments and child support?
    
    A. Child support withholdings take priority over all other claims against the same wages except federal tax liens that were served before the child support withholding Order/Notice. Only after satisfying the child support obligation (to the maximum allowed limit) may you honor the other wage attachments.
    
    
16. Q. When I send wage withholding payments, what date should I report as the withholding date?
    
    A. Report the date the child support payment was withheld from the employee's paycheck. The date of withholding normally coincides with the pay-date.
    
    
17. Q. Is an employee who has declared bankruptcy still liable for child support payments?
    
    A. Yes. Even though an employee declares bankruptcy, he/she is still obligated to pay child support. Debts due for delinquent child support are not discharged in bankruptcy actions. An employer may be notified, however, that it is no longer responsible for withholding the payments because a trustee of the bankruptcy court may take over this task. Continue withholding until you receive official notification from the child support enforcement agency or bankruptcy court.