Q: An employee who was having child support withheld from his pay became an independent contractor. He received two payments last year and another payment this year, but support wasn’t withheld from those payments. The child support agency has told us that we must withhold support. How do we complete the withholding order with regard to how he’s paid?
A: When an employee becomes a contractor and works for his old employer, you must continue withholding support from his payments. Report the end of the contract to the child support agency, just as you would report a termination. If you know he is no longer under contract, report to the agency that he is no longer being paid and when payments stopped.