Question: An employee said he fulfilled his child support obligation. The state faxed us corroborating information, but not on the federal Income Withholding Order (IWO), so withholding continues. Must states use the IWO to inform employers to stop withholding?
Answer: No. States aren’t required to provide withholding termination notices on the IWO. This may change, however, since the IWO is up for renewal. Also, states are sending withholding termination notices electronically. (Source: Office of Child Support Enforcement)