Three-year checkup: OCSE revises IWO & instructions — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Three-year checkup: OCSE revises IWO & instructions

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in Office Management,Payroll Management

Every three years, the federal Office of Child ­Support Enforcement (OCSE) revises the standard Income Withholding Order (IWO). All child ­support withholding orders must be issued on IWOs. The OCSE recently updated the form and instructions.

What’s new. In fiscal year 2013, employers withheld 74% of all child support collected nationwide, so a standardized withholding form is crucial for handling these orders quickly and efficiently. Highlights of the changes include the following:

  • Instructions for withholding from inde­­pen­­dent contractors. Payments made to indepen­­dent contractors aren’t covered under the Con­­­­sumer Credit Protection Act (CCPA), since the CCPA’s limits apply only to wages. Employers, therefore, need to know the withholding limits that apply to payments made to contractors. The IWO now reflects this by letting states indicate this information.
  • One IWO for each case. The instructions clarify that each IWO should apply to one noncustodial party, with the appropriate custodial party and children.

REJECT AND RETURN: To ensure that the states continue to issue only IWOs to enable child support withholding, the OCSE sent the new IWO and instructions to every State Administrator of Courts and Chief Judge. Nevertheless, if you receive a withholding order than isn’t on an IWO, you must reject it and return it to the sender. Request that the sender provide you with an IWO, instead.

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