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Frequently Asked Questions
for Employers about Wage Withholding
State of Alaska
> Revenue
> Child Support Services
> FAQ Menu
> Employer Withholding FAQs
Table of Contents
WHY DO WE WITHHOLD?
1. Is there
something wrong with an employee who is subject to wage withholding?
Let’s start by clearing up a long-standing myth: There’s
nothing wrong with an employee who pays child support through wage
withholding. The most effective way of collecting child support and securing
health insurance (for a child/children) is through wage withholding and the use
of our National Medical Support Notice (NMSN) aka Medical Support Order.
Wage-withholding orders are required on all new or
modified child support orders – even if the parent has never missed a payment.
Back in 1984, when wage withholding for child support first started, the orders
were used only on delinquent cases. Congress changed the law in 1990 to cover
all cases when it realized wage withholding is the best way to collect money
for children.
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. The
child support program’s main job is to make sure support payments are made on
time and in full.
3.
What are the two kinds of orders?
The two kinds of
orders are the Wage Withholding Order (also referred to as Order to withhold
income and deliver or WID) for child support, and the National Medical Support
Notice (NMSN) for medical coverage. The Wage Withholding Order for child
support requires you to forward the withheld wages to the child support agency,
so they can be sent to the employee’s family. The Medical Support Notice
requires you to enroll the employee’s children in health care coverage if it’s
available. More details about the Medical Support Order can be found on page
4.
WHEN
?
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 Services Division (CSSD) or from 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 certain determinations about eligibility have been made.
6.
When will it stop?
Wage withholding
orders and medical support orders remain in effect until you are notified by
the child support agency of any changes.
7.
Can my employee have a copy?
Because of
confidentiality, we do not recommend you give the employee a copy of the
Medical Support Notice, unless it is properly sanitized by removing the
custodial parents and child/ren address and personal identification information.
If you have any questions, please call Employer Assistance.
8.
How often are payments due?
You are to send
in the money you withhold from your employee for child support within seven
business days of each pay date. If the employee is paid weekly, you must send
in the money each week. If your payroll is monthly, you must send in the money
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.
HOW & HOW MUCH?
10.
What do I do when I get a Wage Withholding Order?
Complete the
Answers to Inquiries portion and return it to the child support agency within
14 days. 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, child support agency Member number, and all child
support agency Case numbers.
13.
Is there a limit to withholding?
In Alaska, the
withholding limit for child support is generally 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 in one check to cover child support for all of your employees. However,
you must list the amount and date withheld for each employee, each employee’s
Social Security number and child support agency Member number, and all child
support agency Case numbers.
16.
Can I use direct deposit?
Yes. It’s
optional for employers and it speeds up the process. For information on the
electronic fund transfer option, including software requirements, call
269-6750.
17.
What if the employee objects?
Continue to
withhold wages according to the order and tell your employee to challenge the
order by requesting (in writing) an administrative review with the child
support agency. Until we notify you otherwise, you must withhold money as
ordered.
18.
What if my employee quits?
You must notify
the child support agency promptly when the employee leaves and give 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 the job within that time.
WHAT
NOT TO DO
19.
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 also could be ordered to pay court costs.
20.
What if I ignore the order?
You could be
liable for 100% of 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.
21.
What if the employee goes on Workers Compensation?
If an
employee goes on workers compensation, notify the employer hotline at 269-6901
or 1877-269-6685. You will be asked to provide the name of the workers
compensation provider their address and telephone number.
22.
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.
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