Bonus/Lump Sum Payments

Bonus and lump sum payments are considered employee income and can be garnished to collect child support.  Lump sum payments include (but are not limited to):

Money in an envelope

  • Severance
  • Leave payouts
  • Insurance settlements
  • Retirement incentives
  • Commissions 
  • Stock options
  • Lottery winnings 
  • Awards
  • Payments resulting from verdicts 

See the state requirements for more information about:

  • States that require employers to report upcoming payments before paying them to the employee
  • Threshold amounts for reporting
  • Maximum amounts to withhold (Consumer Credit Protection Act (CCPA)). See Withholding Calculations.

Online Lump Sum Reporting, available on the Employer Services Web Application, is an easy way for employers to notify many states at once about upcoming payments.

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