Information about the e-IWO program, and instructions on signing up are available on the Federal Office of Child Support website. at: eiwomail@acf.hhs.gov

Yes, for all income withholdings, the upper limit on what may be withheld is based on the Federal Consumer Credit Protection Act (CCPA). The federal withholding limits for child support and alimony are based on the disposable earnings of the employee. The Federal CCPA limit is 50% of the disposable earnings if the employee supports a second family and 60% if the employee does not support a second family. These limits increase to 55% and 65% respectively if the employee owes arrearages that are 12 weeks or more past due. States may choose a lower limit. The amount withheld should be determined based on the employee’s principal state of employment. If the employee works in Maryland, use the limits set forth in the CCPA. (About two-thirds of the states use the federal limits, and about one-third cap the withholding at 50% regardless of second families or arrearage amount.)

Under Maryland Family Law, employers must send payment of the withheld wages within seven (7) business days, at the most, of paying wages to the employee. The state where the employer is located may set a shorter time limit for submitting the payment.

Under Maryland Family Law, an employer is liable for damages in an amount equal to the amount of any withholding that the employer failed to deduct or failed to remit within seven (7) business days. The employer’s liability is in addition to any amounts paid directly or indirectly by the employee

The employee should contact the state child support agency or court that issued the order if he/she disputes it. The employer should make it clear that by law, until the employer is otherwise notified, the employer must comply with the terms of the withholding order as issued.

Yes, employers may send one check each pay period to cover all child support withholdings for that pay period if:

1. They are all being sent to the same State Disbursement Unit (SDU), and
2. The employer itemizes the amount withheld from each employee, the date each amount was withheld, and a required identifier such as the case number.

Yes, all payments withheld by employers/income withholders must be sent to the SDU, except those issued by a Tribal child support agency or those entered before January 1, 1994. This applies to those orders enforced by a child support (CS) agency and those orders resulting from divorces or private court actions. Payments for spousal support only are not generally paid to the SDU although some states do allow it, including Maryland.

The employer should continue withholding until the child support (CS) agency or court notifies the employer to change or stop the withholding.

Most states allow the employer to charge the employee an administrative fee for processing the income withholding. The limit of the administrative fee in Maryland is $2.00 per deduction. If the employee works in a state outside of Maryland, contact the child support (CS) agency in that state to determine the administrative fee in that state. Note that the total amount the employer withholds for child support plus fees may not exceed the maximum amount permitted under the Federal Consumer Credit Protection Act (CCPA)

If the fee plus the child support exceeds the maximum amount allowed to be withheld under the CCPA, the employer may take the entire amount of its administrative fee and make the child support payment less than the amount in the IWO. The amount of support that was not paid (because the employer deducted the administrative fee) becomes part of the arrears owed by the noncustodial party.

Yes. Under the Uniform Interstate Family Support Act (UIFSA), employers are required to honor an IWO from another state as long as the order appears to be “regular on its face.”

“Regular on its face” means that any reasonable person would think it is valid. The 2011 version of the IWO form clarifies this term by saying that an IWO is regular on its face if:

• it is payable to the SDU,
• required, a copy of the underlying order containing an income withholding clause is included,
• the amount to withhold is a dollar amount,
• the form has not been altered nor has invalid information been entered, and
• it contains all of the necessary information to process the IWO.

Effective May 31, 2012, the IWO must be on the federal form, OMB 0970-0154, to be “regular on its face”.

Child support withholdings take priority over all other claims against the same wages except federal tax liens that were entered before the child support order was established. When there are garnishments or income attachments other than federal tax liens, the employer may honor the garnishments or income attachments only after satisfying the child support obligation (to the maximum allowed limit of the CCPA). If the allowable limit for the other type of garnishment has been reached, there may be no funds available to apply to the second garnishment.

The employer should notify the Child Support Administration that a federal tax (IRS) levy was received in addition to the IWO. The Child Support Administration (CSA) can inform the employer if the underlying child support order was in fact established prior to the date that the IRS levy was entered. If the underlying order was not established prior to the IRS levy, the child support agency should then contact the IRS to determine if the levy may be modified to allow withholding of any child support.

Child support withholdings takes priority over withholding for medical support. When there are garnishments or income attachments other than federal tax liens, the employer may honor the garnishments only after satisfying the child support obligation (to the maximum allowed limit of the CCPA). If the allowable limit for the other type of garnishment has been reached, there may be no funds available to apply to the second garnishment.

For additional questions call the DHS Hotline at 800-332-6347.