Employers Wage Withholding FAQ
Table of Contents
- Is there something wrong with an employee who is subject to wage withholding?
- Is income withholding meant to punish employees?
- What kinds of withholding orders are there?
- When will I know?
- When will it start?
- When will it stop?
- Can my employee have a copy?
- How often are payments due?
- Can I charge the employee?
- What do I do when I get a Wage Withholding Order?
- What if I get more than one Withholding Order?
- What information needs to be on the check?
- Is there a limit to withholding?
- Do commissions and bonuses count?
- Can I combine payments?
- What if the employee objects?
- What if my employee quits?
- Can I fire the employee so that I don’t have to bother with wage withholding?
- What if I ignore the order?
- What if the employee goes on Workers Compensation?
- What is wage with withholding for a contractor?
WHY DO WE WITHHOLD?
1. Is there something wrong with an employee who is subject to wage withholding?
The agency is required by federal law to use direct withholding order to the employer to collect child support.Congress changed the law in 1990 to mandate this method when it was determined withholding is the most efficient way to collect support and securing health insurance for families.Wage-withholding orders are required on all new or modified child support orders – even if the parent has never missed a payment.
2. Is income withholding meant to punish employees?
Income withholding is not meant to punish the employee – it’s to collect the money children need for housing, food, school supplies, clothes, and health care.
3. What are the most common kinds of withholding orders?
The most common kinds of withholding orders are the Wage Withholding Order (also referred to as Order to withhold income and deliver or WID) These require the employer to forward the withheld wages to CSED by the employees pay cycle. The National Medical Support Notice (NMSN) for medical coverage requires the employer to enroll the employee’s children in health care coverage if it’s available. Another example would be a Property Withholding order.
4. When will I know?
You’ll receive a Wage Withholding Order telling you when to begin, how much to deduct and where to send the information and or money. The order may come from the Alaska Child Support Enforcement Division (CSED) or another state, but you must follow the order.
5. When will it start?
A Wage Withholding Order for child support requires that you start withholding no later than the first pay period following the date you receive the order. A Medical Support Notice requires you to enroll the children in health care as soon as eligibility determinations have been made.
6. When will it stop?
Wage withholding orders and medical support orders remain in effect until you receive modified request or termination notice.
7. Can my employee have a copy?
Due to confidentiality restrictions, please do not give the employee a copy of the Medical Support Notice until you have removed the other parent's location, address, social security, and personal identification information. If you have any questions, please call Employer Assistance.
8. How often are payments due?
The money you withhold from your employee for child support should be sent within seven business days of each pay date. If the employee is paid weekly, the payment is due each week. If your payroll is monthly, the money is due once a month.
9. Can I charge the employee?
The law allows employers the option of charging employees up to $5 each time money is withheld from their paycheck.
10. What do I do when I get a Wage Withholding Order?
Complete the Answers to Inquiries portion that is attached and return it to the child support agency within 14 days. After this you should begin withholding at the next pay period.
11. What if I get more than one Withholding Order?
If both are Alaskan orders, withhold the combined total of the orders up to the limit on line “i” of the Wage Withholding Order.Be sure to reference both case numbers on your check.
If the orders are from different states but for different custodians or child/ren you must add the withholding amounts required by each order, but not exceed the withholding limits.For assistance in determining the correct amounts, call our Employer Assistance section at (907) 269-6089.
If you receive more than one order for the same case, notify the child support agency of the duplication.
12. What information needs to be on the check?
The employee’s:
- Social Security number
- CSED Member number
- CSED Case numbers
If you are a payroll company doing payroll for another company, please place the employer's name also on the check.
13. Is there a limit to withholding?
In Alaska, the withholding limit for child support is 40% of net income or 50% if Medical Support is required. Net income is gross wages minus federal income taxes, Social Security, Medicare, and other mandatory deductions.
The percent withheld can be increased, up to the maximum allowed by the Federal Consumer Credit Protection Act, if the child support agency finds good cause. The percentage to be withheld is indicated on line “i” of the Wage Withholding Order.
14. Do commissions and bonuses count?
Yes. Alaska law requires that employers withhold for child support and medical support from all earnings. It defines earnings to include wages, salaries, commissions, bonuses, dividends, retirement benefits, and other compensation.
15. Can I combine payments?
Yes. You can send one check to cover child support for all of your employees.However, please verify you include:
- The amount and date withheld for each employee
- Each employee’s Social Security number
- CSED Member number
- CSED case numbers
If you are a payroll company doing payroll for another company, please place each employers name also on the check.
16. What if the employee objects?
Advise that you will comply with the order and withhold wages. However, you can inform your employee they have the right to contact CSED and request (in writing) an administrative review and explain why they object with the CSED collecting wages.
17. What if my employee quits
Notify the child support agency promptly when the employee leaves, please provide the employee’s last known home address and – if you know it – the new employer’s name and address.
Alaska law requires you to keep a record of the withholding order for three years and to enforce the order if the employee returns to employment with you within that time.
18. Can I fire the employee so that I don’t have to bother with wage withholding?
No. You could be fined up to $1,000 if you refuse to hire an applicant or if you discipline or fire an employee because of a child support wage-withholding order or a Medical Support Notice. You could also held legally responsible to pay court costs.
19. What if I ignore the order?
You could be liable for 100% of the money owed under the child support order if you fail to follow the withholding order or Medical Support Notice. You also could be liable for court costs, interest, and attorney fees.
20. What if the employee goes on Workers Compensation?
If an employee goes on workers compensation, notify the employer hotline at 269-6901 or 1-877-269-6685. You will be asked to provide the name of the worker's compensation provider their address and telephone number.
21. What is wage with withholding for a contractor?
Wage withholding for a contractor is 100% of the contract, not to exceed the outstanding child support debt.