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Non-IV-D Immediate Wage Withholding

DCL-94-01

Published: January 4, 1994
Information About:
State/Local Child Support Agencies
Topics:
Case Management, Enforcement, Employer Responsibilities, Income/Wage Withholding
Types:
Policy, Dear Colleague Letters (DCL)
Tags:
Non-IV-D

TO ALL STATE IV-D DIRECTORS

RE:  Non-IV-D Immediate Wage Withholding

Dear Colleague:

We have recently clarified the policy set forth in OCSE-AT-93-06
regarding the Federal statutory requirement that States must provide,
effective January 1, 1994, for immediate withholding in all child
support orders initially issued in the State which are not being
enforced under title IV-D of the Social Security Act (the Act).

First, we have stressed that States may choose from a variety of
approaches in implementing this requirement.  One option could be a
procedure where the employer sends the withheld amount directly to
the custodial parent's bank account through electronic funds transfer
(EFT) or by check.  The bank records associated with the custodial
parent's account would provide an adequate payment record. This
approach would assure prompt distribution, provide for keeping
adequate records to document payment of support, and permit the
tracking and monitoring of such payments.

Second, we have emphasized that, in accordance with OCSE-AT-93-06,
States are free to adopt procedures for findings of good cause and
alternative arrangements not to implement non-IV-D immediate
withholding which differ from the minimum criteria required in IV-D
cases.  States may design criteria for alternative arrangements which
allow the parents, in cases in which they do not want payments to go
through the public agency or publicly accountable entity, or do not
want to pay any fee that may be imposed, to choose on a case-by-case
basis to have withholding implemented through a system where the
employer would send withheld amounts directly to the custodial parent
(as opposed to the public agency or publicly accountable entity). 
States would still need to establish a system for non-IV-D
withholding which meets the mandatory requirements at 42 USC
666(a)(8)(B), but the volume of cases under that procedure may be
lessened by affording parents an alternative arrangement.

Lastly, we have sought to clarify any misunderstanding of cost
recovery activities explained in OCSE-AT-93-06.  The $25 annual fee
restriction in 45 CFR 302.57(b)(3) is applicable to activities
conducted upon the request of an individual obligor or obligee where,
at the State's option, either parent can request that payments be
made through the State agency or other entity  which administers the
State's income withholding system.  This "cap" on fees does not apply
to
recovery of costs for performing mandatory non-IV-D withholding
activities conducted by the IV-D agency where costs must be allocated
between IV-D and non-IV-D activities.  Therefore, States may recover
the full cost of administering withholding in non-IV-D cases.

These clarifications are contained in OCSE-PIQ-93-08, dated December
23, 1993, and OCSE-PIQ-93-09, dated December 30, 1993.  We hope this
information is helpful to you as you implement the non-IV-D
withholding requirements.

                              Sincerely,




                              Robert C. Harris
                              Acting Deputy Director
                              Office of Child Support Enforcement


cc:  ACF Regional Administrators
          Regions I - X

          Program Managers
          Child Support
          Regions I - X