9.9 Wage Withholding

 Federal Authority:


Social Security Act

§454(20) -  State plan for child support and spousal support 

§466(a)(1) , (b) and (d) Requirement of statutorily prescribed procedures to improve effectiveness of child support enforcement


United States Code

15 USC 1673 Federal restrictions on garnishments


Code of Federal Regulations

45 CFR 303.100 Procedures for income withholding 

45 CFR 303.11 Case closure criteria 

State Authority:


Wyoming Statute

Wyo. Stat. § 20-2-405 Priorities of payment 

Wyo. Stat. § 20-2-171 Employer’s receipt of income withholding order of another state; employer’s compliance with income withholding of another state;’ compliance with multiple income withholding orders 

Wyo. Stat. §§ 20-6-201 - 20-6-222 Income Withholding Act


Wyoming Child Support Enforcement Rules

Chapter 6 Income withholding

Policy Number:  9.9

Effective Date:  October 1, 2010

Policy

General Rules

Immediate Income Withholding

Under federal and Wyoming law, all new child support orders must provide that income withholding shall take effect immediately, unless: 

1) The court finds good cause not to require immediate income withholding, and, the reasons for the exemptions are stated in the order; or

2) The parties  agree, in writing, that immediate income withholding is not appropriate, the court approves the agreement, and the reasons  for the exemptions are stated in the order. 

Note:    Entry of an immediate income withholding order is non-negotiable in any action in which the Wyoming IV-D program is participating.

If a child support order was entered prior to June 1, 1986 and does not require immediate income withholding, the District Court that entered the original order will enter an immediate income withholding order on its own motion or at the request of a parent or the Wyoming Child Support Program (CSP)   

An immediate income withholding order will be used to collect current child support, cash medical support as described in 9.8 Medical Support, child and/or medical support arrears, and interest, penalties, and costs associated with a child support order.

Income Subject to Withholding

In Wyoming, income is defined by statute as “any form of payment or return in money or in kind to an individual, regardless of source. Income includes, but is not limited to wages, earnings, salary, commission, compensation as an independent contractor, temporary total disability, permanent partial disability and permanent total disability worker's compensation payments, unemployment compensation, disability, annuity and retirement benefits and any other payments made by any payor.”  Wyo. Stat. § 20-6-202(a)(ix)

Withholding Limitations

The Wyoming CSP follows the guidelines set forth in the Federal Consumer Credit Protection Act (CCPA) regarding wage withholding limitations.  The wage withholding limitations in accordance with 15 USC  § 1673 Federal Restrictions on Garnishments are as follows:

The maximum part of the aggregate disposable earnings of an individual for any workweek which is subject to garnishment to enforce any order for the support of any person will not exceed:

 Income Withholding Payment Priorities

There may be instances when the amount requested on the Notice to Payor (NTP) exceeds the amount the employer can legally withhold as limited by the CCPA or similarly, the CCPA limits may be exceeded when an employer receives multiple wage withholding requests for the same non-custodial parent.

The following provides the rules for withholding prioritization and multiple wage withholdings.

Wage withholding will be disbursed in the following priority:

If there is more than one wage withholding order requiring payment to different custodial parents, then the payments withheld will be disbursed as follows:

Duties of the Employer

When an employer receives a NTP, the employer will:

Employer Enforcement

If an employer fails to withhold income as required by an NTP or withholds child support but fails to remit it to the Wyoming State Distribution Unit as required by an NTP, a District Court may hold the employer liable for the amount the employer should have withheld and remitted and/or a civil penalty not to exceed $200.00.  Depending on the judicial district, a District Court may also hold an employer who fails to comply with an NTP in civil contempt of court.  

If a payment from an employer has not been received within 45 days of the date the NTP was mailed, the caseworker will call the employer to discuss the NTP.  

Note:  Before the Wyoming CSP can file an action to hold the employer in contempt and/or liable for the accrued support and/or civil penalty, the District CSP Office will serve the NTP on the employer by certified mail return receipt requested or personal service.

Income Withholding

When a case worker identifies an employer for a non-custodial parent, within 2 days, the case worker will:

Note:  If the case does not include an immediate income withholding order, the case worker will file an application for an immediate income withholding order with the court and then proceed with the NTP as described above after the immediate income withholding order is entered.  

Under certain circumstances, POSSE will generate the NTP automatically.  When this occurs, the State CSP Office will mail a copy of the NTP to the employer, non-custodial parent, custodial parent, District CSP Office, and Clerk of District Court.  

Modify, Suspend, or Terminate Income Withholding  

Modify

If the current support changes, the arrears are paid in full, or other circumstances exist as determined by the District CSP Attorney, the case worker will amend the NTP by generating a copy of the federally approved income withholding order/notice to payor.  The case worker shall mark the “Amended IWO” box at the top; mail a copy of the amended NTP to the employer, non-custodial parent, and custodial parent; and file the original with the Clerk of District Court.

Suspend

An NTP may be suspended if the custodial parent does not supply the Clerk of District Court with an address to remit payments or the parties to the case agree.  If support is assigned, the Wyoming CSP is a party and shall also agree to suspension of the NTP.

If suspension is required, the case worker will amend the NTP as described above and change the withholding amounts to $0.00.

Terminate

The case worker will terminate the NTP in the following circumstances:

In order to terminate the NTP, the case worker will generate the federally approved income withholding order/notice to payor (NTP) and mark the “Termination of IWO” box at the top; mail a copy of the NTP terminating withholding to the employer, non-custodial parent, and custodial parent; and file the original with the Clerk of District Court.

Special Circumstances

Intergovernmental Income Withholding

If a non-custodial parent’s employer is located in another state, the Uniform Intergovernmental Family Support Act (UIFSA) allows for direct withholding from the state which is enforcing the order to the state where the employer is located.  In these instances, the case worker will follow the steps listed above in “Income Withholding”.  

If the out-of-state employer fails to honor the Wyoming NTP, the case worker should immediately contact the employer to explain the withholding process.  If the out-of-state employer continues to ignore the Wyoming NTP, the case worker will send a transmittal asking the other state to register and enforce the order as described in 11.2 Intergovernmental – Initiating.

Military Pay

If the non-custodial parent receives any form of military pay (active, reserve, National Guard, or retired) or works for the Department of Defense, the case worker will complete the “Income Withholding” steps listed above and send the NTP to the appropriate address as discussed in Chapter 15 Military.

Unemployment Insurance Benefit (UIB)

The Wyoming Child Support Program exchanges case information with the Wyoming Department of Employment, Unemployment Insurance Division to withhold child and medical support from any non-custodial parent with a IV-D child support case receiving UIB.

Worker’s Compensation

Based upon a data exchange between the Wyoming CSP’s computer system, POSSE, and the Worker’s Safety and Compensation Division, the case worker receives information when a non-custodial parent is receiving or has applied for worker’s compensation benefits.  If a wage withholding is appropriate, the case worker will take steps to withhold the non-custodial parent’s worker’s compensation benefits as described above in “Income Withholding.”

Social Security Benefits

Information about a non-custodial parent’s receipt of social security benefits may be obtained through the State Verification and Exchange System (SVES) as described in 7.4 Locate – FCR.

The Social Security Retirement (SSR) benefits and Social Security Disability Insurance (SSDI) benefits are subject to income withholding for child support.  Supplemental Security Disability Insurance (SSDI) benefits are subject to income withholding for child support as long as the obligor is not also receiving Supplemental Security Income, which is need-based and exempt from withholding.   

If a case worker determines a non-custodial parent is receiving  SSR or SSDI, the case worker will take steps to withhold from benefits as described above in “Income Withholding.”  The case worker will send the NTP to the local SSA office.  The SSA office will enter the data on the SSA’s Court Order Garnishment System (COGS).

If a disability claim by a non-custodial parent is pending and the NTP is received, COGS will hold the NTP in its system until the claim is resolved.  If the NTP is more than a year old, SSA will contact the case worker to ensure income withholding is still appropriate.

Note:  If the case does not include an immediate income withholding order, the case worker will file an application for an immediate income withholding order with the court and then proceed with the NTP as described above

If a non-custodial parent receives a lump sum from SSA, COGS will withhold up to CCPA limits if the NTP provides specific instructions on how to handle a lump sum payment.  If the NTP does not provide specific instructions, SSA will contact the case worker for instructions.

Note:  When the CSP Office receives information from Social Security indicating the NCP is receiving SSI benefits or a combination of SSI and SSDI benefits or SSI and SSR benefits, the CSP Office shall terminate the wage assignment and review the case for closure. (see Chapter 12 – Case Closure.)

Veteran’s Benefits

Veteran’s benefits are exempt from child support withholding unless the benefit is compensation for employment.  In that case, the case worker will follow the steps indicated above in the “Income Withholding” section.  The NTP should be sent to the Regional Veterans Administration (VA) Office.

According to the Social Security Act and other federal statutes governing VA benefits, there are certain limited circumstances when dependents may obtain financial support from a veteran’s benefits.  Those circumstances include:

1) If a veteran is entitled to receive military retired pay and waives a portion to receive VA disability pay, then the VA disability pay in lieu of retired military pay may be garnished to satisfy a child support order; however this provision does not apply if the child is no longer a minor.

2) If the veteran is not residing with his or her child(ren) and not providing support, then the veteran’s compensation, pension, or emergency officer’s retirement pay may be apportioned for the benefit of the child(ren).

3) A special apportionment may be authorized if the custodial parent shows a hardship for the child(ren).

If the case worker believes the case meets one of the exceptions, the case worker should send a letter on state letterhead to the VA and request an apportionment review.

Cross Reference

None

Version Number: 4

Last Revised Date:  June 11, 2021

Last Reviewed:  May 31, 2024