Remitting Payments

State Disbursement Units

State Disbursement Units (SDUs) centralize the collection and disbursement of specified child support payments. Federal law requires SDUs to process all payments under orders (1) in all IV-D cases and (2) in all non IV-D cases in which the support order was initially issued in the state on or after January 1, 1994, and in which the income of the noncustodial parent is subject to withholding. Some states require that payments for all cases, IV-D and non IV-D, regardless of date, and spousal support be remitted to the SDU. Cases that are not processed through the SDU are typically handled locally at county offices or courts as they were before SDU implementation.

With the implementation of centralized collections handled by a SDU, custodial parents benefit because states are required to distribute payments within two business days after receipt. Benefits to employers sending checks to fewer locations in a state include:

• reduced check processing costs,
• fewer errors, and
• opportunity to use electronic transmission of payments and payment information.

Click here for a list of contact information in all SDUs.