What’s a ‘payment’ for child-support withholding? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

What’s a ‘payment’ for child-support withholding?

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in Office Management,Payroll Management

Question: Employees exercise options and buy company stock. Is the value of the stock subject to child-support withholding? Is it as a lump-sum payment, or covered under the standard income withholding order?

Answer: This is the equivalent of a bonus, so it’s considered a lump-sum payment. Seventeen states require employers to withhold on lump-sum payments; those states can be found at http://tinyurl.com/ocselumpsum. (Source: Office of Child Support Enforcement)

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