Employer Question 2

How Does Income Withholding Work?

Answer

Income withholding is the court or administrative agency ordered deduction of child and medical support obligations from a parents income. It takes priority over all other legal processes against income (including commercial garnishments) except for an IRS tax lien served before the income withholding order. Your employee is not required to tell you that she or he owes child support.

It's a good idea to give your employee a copy of the income withholding order/notice.

Begin withholding and send in payments within 10 days of receipt of the order. Generally, you may deduct up to 50%* of the employee's net income. Net income is income after mandatory deductions such as taxes, mandatory union dues, etc. Payments must be forwarded to our office within 7 days from the date they are deducted from the employee's earnings.

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