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Statutory and Regulatory Authority for Income Withholding Allocation

Published: April 10, 2012
Information About:
Employers, Other Public Partners, Courts
Topics:
Employer Responsibilities, Income/Wage Withholding
Types:
Guides/Publications/Reports

1. Code of Federal Regulations Title 5 Chapter 1 Part 581 Section 303 Response to legal process or interrogatories (a)(1) to (3)

[Copy from the U.S. Code Online via GPO Access] [wais.access.gpo.gov] [Code of Federal Regulations] [Title 5, Volume 1] [Revised as of January 1, 2004] [CITE: 5CFR581.303]

(a) Whenever the designated agent is validly served with legal process pursuant to State procedures in effect pursuant to subjection (a)(1) or (b) of section 666 of title 42, United States Code, within 30 calendar days, or within such longer period as may be prescribed by applicable State law, the agent shall comply with all applicable provisions of section 666, including as follows: (1) If an agent is served with notice concerning amounts owed by an obligor to more than one person, the agent shall comply with section 666(b)(7); (2) Allocation of moneys due and payable to an individual under section 666(b) shall be governed by section 666(b) and the regulations prescribed under such section by the Secretary of Health and Human Services; (3) Such moneys as remain after compliance with paragraphs (a)(1) and (a)(2) of this section shall be available to satisfy any other such legal process on a first-come, first-served basis, with any such legal process being satisfied out of such moneys as remain after the satisfaction of all such legal process which have been previously served.

2. United States Code Title 42 Chapter 7 Section 659 (a) Consent to support enforcement

[From the U.S. Code Online via GPO Access] [wais.access.gpo.gov] [Laws in effect as of January 7, 2003] [Document not affected by Public Laws enacted between January 7, 2003 and February 12, 2003] [CITE: 42USC659]

(a) Consent to support enforcement Notwithstanding any other provision of law (including section 407 of this title and section 5301 of title 38), effective January 1, 1975, moneys (the entitlement to which is based upon remuneration for employment) due from, or payable by, the United States or the District of Columbia (including any agency, subdivision, or instrumentality thereof) to any individual, including members of the Armed Forces of the United States, shall be subject, in like manner and to the same extent as if the United States or the District of Columbia were a private person, to withholding in accordance with State law enacted pursuant to subsections (a)(1) and (b) of section 666 of this title and regulations of the Secretary under such subsections, and to any other legal process brought, by a State agency administering a program under a State plan approved under this part or by an individual obligee, to enforce the legal obligation of the individual to provide child support or alimony.

3. United States Code Title 42 Chapter 7 Section 659 (d) Priority of Claims (1) and (2)

[From the U.S. Code Online via GPO Access] [wais.access.gpo.gov] [Laws in effect as of January 7, 2003] [Document not affected by Public Laws enacted between January 7, 2003 and February 12, 2003] [CITE: 42USC659]

(d) Priority of claims If a governmental entity specified in subsection (a) of this section receives notice or is served with process, as provided in this section, concerning amounts owed by an individual to more than 1 person-- (1) support collection under section 666(b) of this title must be given priority over any other process, as provided in section 666(b)(7) of this title; (2) allocation of moneys due or payable to an individual among claimants under section 666(b) of this title shall be governed by section 666(b) of this title and the regulations prescribed under such section; and

4. United States Code Title 42 Chapter 7 Section 666 (b)(6)(A)(i)

[Copy from the U.S. Code Online via GPO Access] [wais.access.gpo.gov] [Laws in effect as of January 7, 2003] [Document not affected by Public Laws enacted between January 7, 2003 and February 12, 2003] [CITE: 42USC666]

(6)(A)(i) The employer of any noncustodial parent to whom paragraph (1) applies, upon being given notice as described in clause (ii), must be required to withhold from such noncustodial parent's income the amount specified by such notice (which may include a fee, established by the State, to be paid to the employer unless waived by such employer) and pay such amount (after deducting and retaining any portion thereof which represents the fee so established) to the State disbursement unit within 7 business days after the date the amount would (but for this subsection) have been paid or credited to the employee, for distribution in accordance with this part. The employer shall withhold funds as directed in the notice, except that when an employer receives an income withholding order issued by another State, the employer shall apply the income withholding law of the State of the obligor's principal place of employment in determining-- (IV) the priorities for withholding and allocating income withheld for multiple child support obligees; and

5. United States Code Title 42 Chapter 7 Section 666 (b)(7)

[Copy from the U.S. Code Online via GPO Access] [wais.access.gpo.gov] [Laws in effect as of January 7, 2003] [Document not affected by Public Laws enacted between January 7, 2003 and February 12, 2003] [CITE: 42USC666]

(7) Support collection under this subsection must be given priority over any other legal process under State law against the same income.

6. Code of Federal Regulations Title 45 Chapter 3 Part 303 Section 100 Procedures for income withholding (a)(5)

Copy from the U.S. Government Printing Office via GPO Access][Code of Federal Regulations][Title 45, Volume 2][Revised as of October 1, 2003][CITE: 45CFR303.100]

(5) If there is more than one notice for withholding against a single noncustodial parent, the State must allocate amounts available for withholding giving priority to current support up to the limits imposed under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 1673(b)). The State must establish procedures for allocation of support among families, but in no case shall the allocation result in a withholding for one of the support obligations not being implemented.