Notice to income payor of implementation of income withholding
Sec. 4. (a) This section applies to the implementation of income
withholding under an order issued under sections 1 and 3 of this
chapter.
(b) If the Title IV-D agency or the court becomes aware that the
obligor has an income payor to whom a notice has not been sent
under subsection (c) or an income payor to whom notice of
delinquent support has not been sent under subsection (c):
(1) the Title IV-D agency in a case arising under Title IV-D of
the federal Social Security Act (42 U.S.C. 651 through 669); or
(2) the court;
shall not later than fifteen (15) calendar days after becoming aware
of an income payor send a written notice to the income payor that the
withholding is binding on the income payor.
(c) The notice to an income payor under this section must contain
a statement of the following:
(1) That the income payor is required to withhold a certain
amount of income from the obligor.
(2) That the total amount to be withheld under court order by
the obligor's income payor from the obligor's income is the sum
of:
(A) the obligor's current child support obligation;
(B) an amount to be applied toward the liquidation of any
arrearages; and
(C) an optional fee of two dollars ($2), which is payable to
and imposed at the option of the income payor, each time the
income payor forwards income to the state central collection
unit or other person specified in the notice;
up to the maximum amount permitted under 15 U.S.C. 1673(b).
(3) That the income payor shall:
(A) forward the withheld income described in subdivision
(2)(A) and (2)(B) to the state central collection unit or other
person named in the notice at the same time that the obligor
is paid; and
(B) include a statement identifying:
(i) each cause number;
(ii) the name of each obligor; and
(iii) the name of each payee with the withheld income
forwarded by the income payor.
(4) That withholding is binding upon the income payor until
further notice from a Title IV-D agency.
(5) That the obligor may recover from the income payor in a
civil action an amount not less than one hundred dollars ($100)
if the income payor:
(A) discharges the obligor from employment;
(B) refuses the obligor employment; or
(C) disciplines the obligor;
solely because the income payor is required to forward income
under this chapter.
(6) That the income payor is liable for any amount that the
income payor fails to forward under this chapter.
(7) That withholding under this chapter has priority over any
secured or unsecured claim on income except claims for federal,
state, and local taxes.
(8) That, if the income payor is required to withhold income
from more than one (1) obligor, the income payor may:
(A) combine in a single payment the withheld amounts for
all obligors who have been ordered to pay the state central
collection unit or other governmental agency; and
(B) separately identify the part of the single payment that is
attributable to each individual obligor.
(9) That if:
(A) there is more than one (1) order for withholding against
a single obligor; and
(B) the obligor has insufficient disposable earnings to pay
the amount required by all the orders;
the income payor shall distribute the withheld earnings pro rata
among the entities entitled to receive earnings under the orders,
giving priority to a current support withholding order. The
income payor shall honor all withholdings to the extent that the
total amount withheld does not exceed the limits imposed under
15 U.S.C. 1673(b).
(10) That the income payor shall implement withholding not
later than the first pay date after fourteen (14) days following
the date the notice was received.
(11) That the income payor shall:
(A) notify:
(i) the Title IV-D agency if the Title IV-D agency gives
the notice under this section; or
(ii) the court if the court gives the notice under this
section;
when the obligor ceases employment or no longer receives
income not later than ten (10) days after the employment or
income ceases; and
(B) provide:
(i) the obligor's last known address; and
(ii) the name and address of the obligor's new income
payor, if known.
As added by P.L.1-1997, SEC.8. Amended by P.L.234-2005, SEC.86.
Last modified: May 24, 2006