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)