[Code of Federal Regulations]
[Title 45, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR303.100]

[Page 256-260]
 
                        TITLE 45--PUBLIC WELFARE
 
    CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT 
 
PART 303_STANDARDS FOR PROGRAM OPERATIONS--Table of Contents
 
Sec. 303.100  Procedures for income withholding.

    (a) General withholding requirements. (1) The State must ensure that 
in the case of each noncustodial parent against whom a support order is 
or has been issued or modified in the State, and is being enforced under 
the State plan, so much of his or her income as defined in sections 
466(b)(1) and (8) of the Act must be withheld, in accordance with this 
section, as is necessary to comply with the order.
    (2) In addition to the amount to be withheld to pay the current 
month's obligation, the amount to be withheld must include an amount to 
be applied toward liquidation of overdue support.

[[Page 257]]

    (3) The total amount to be withheld under paragraphs (a)(1), (a)(2) 
and, if applicable, (f)(1)(iii) of this section may not exceed the 
maximum amount permitted under section 303(b) of the Consumer Credit 
Protection Act (15 U.S.C. 1673(b)).
    (4) In the case of a support order being enforced under the State 
plan, the withholding must occur without the need for any amendment to 
the support order involved or any other action by the court or entity 
that issued it other than that required or permitted under this section.
    (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.
    (6) The withholding must be carried out in full compliance with all 
procedural due process requirements of the State.
    (7) The State must have procedures for promptly terminating 
withholding:
    (i) In all cases, when there is no longer a current order for 
support and all arrearages have been satisfied; or,
    (ii) At State option, when the noncustodial parent requests 
termination and withholding has not been terminated previously and 
subsequently initiated, and the noncustodial parent meets the conditions 
for an alternative arrangement set forth under paragraph (b)(3) of this 
section.
    (8) The State must have procedures for promptly refunding to 
noncustodial parents amounts which have been improperly withheld.
    (9) Support orders issued or modified in IV-D cases must include a 
provision requiring the noncustodial parent to keep the IV-D agency 
informed of the name and address of his or her current employer, whether 
the noncustodial parent has access to health insurance coverage at 
reasonable cost and, if so, the health insurance policy information.
    (b) Immediate withholding on IV-D cases. (1) In the case of a 
support order being enforced under this part that is issued or modified 
on or after November 1, 1990, the income of a noncustodial parent shall 
be subject to withholding, regardless of whether support payments by 
such parent are in arrears, on the effective date of the order, except 
that such income shall not be subject to withholding under this 
paragraph in any case where:
    (i) Either the noncustodial or custodial parent demonstrates, and 
the court or administrative authority finds, that there is good cause 
not to require immediate withholding; or
    (ii) A written agreement is reached between the absent and custodial 
parent, and, at State option, the State in IV-D cases in which there is 
an assignment of support rights to the State, which provides for an 
alternative arrangement.
    (2) For the purposes of this paragraph, any finding that there is 
good cause not to require immediate withholding must be based on at 
least:
    (i) A written determination that, and explanation by the court or 
administrative authority of why, implementing immediate income 
withholding would not be in the best interests of the child; and
    (ii) Proof of timely payment of previously ordered support in cases 
involving the modification of support orders.
    (3) For purposes of this paragraph, ``written agreement'' means a 
written alternative arrangement signed by both the custodial and 
noncustodial parent, and, at State option, by the State in IV-D cases in 
which there is an assignment of support rights to the State, and 
reviewed and entered in the record by the court or administrative 
authority.
    (c) Initiated withholding in IV-D cases. In the case of income not 
subject to immediate withholding under paragraph (b) of this section, 
including cases subject to a finding of good cause or to a written 
agreement:
    (1) The income of the noncustodial parent shall become subject to 
the withholding on the date on which the payments which the noncustodial 
parent has failed to make under a support order are at least equal to 
the support

[[Page 258]]

payable for one month or, if earlier, and without regard to whether 
there is an arrearage, the earliest of:
    (i) The date on which the noncustodial parent requests that 
withholding begin;
    (ii) The date on which the custodial parent requests that 
withholding begin, if the State determines, in accordance with such 
procedures and standards as it may establish, that the request should be 
approved; or
    (iii) Such earlier date as State law or procedure may provide.
    (2) The only basis for contesting a withholding under this paragraph 
is a mistake of fact, which for purposes of this paragraph means an 
error in the amount of current or overdue support or in the identity of 
the alleged noncustodial parent.
    (d) Notice to the noncustodial parent in cases of initiated 
withholding. The State must send a notice to the noncustodial parent 
regarding the initiated withholding. The notice must inform the 
noncustodial parent:
    (1) That the withholding has commenced;
    (2) Of the amount of overdue support that is owed, if any, and the 
amount of wages that will be withheld;
    (3) That the provision for withholding applies to any current or 
subsequent employer or period of employment;
    (4) Of the procedures available for contesting the withholding and 
that the only basis for contesting the withholding is a mistake of fact;
    (5) Of the information provided to the employer, pursuant to 
paragraph (e) of this section.
    (e) Notice to the employer for immediate and initiated withholding. 
(1) To initiate withholding, the State must send the noncustodial 
parent's employer a notice using the standard Federal format which 
includes the following:
    (i) The amount to be withheld from the noncustodial parent's income, 
and a statement that the amount actually withheld for support and other 
purposes, including the fee specified under paragraph (e)(1)(iii) of 
this section, may not be in excess of the maximum amounts permitted 
under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 
1673(b));
    (ii) That the employer must send the amount to the SDU within 7 
business days of the date the noncustodial parent is paid, and must 
report to the SDU the date on which the amount was withheld from the 
noncustodial parent's income;
    (iii) That, in addition to the amount withheld for support, the 
employer may deduct a fee established by the State for administrative 
costs incurred for each withholding, if the State permits a fee to be 
deducted;
    (iv) That the withholding is binding upon the employer until further 
notice by the State;
    (v) That the employer is subject to a fine to be determined under 
State law for discharging a noncustodial parent from employment, 
refusing to employ, or taking disciplinary action against any 
noncustodial parent because of the withholding;
    (vi) That, if the employer fails to withhold income in accordance 
with the provisions of the notice, the employer is liable for the 
accumulated amount the employer should have withheld from the 
noncustodial parent's income;
    (vii) That the withholding under this section shall have priority 
over any other legal process under State law against the same income;
    (viii) That the employer may combine withheld amounts from 
noncustodial parents' income in a single payment to each appropriate 
agency requesting withholding and separately identify the portion of the 
single payment which is attributable to each individual noncustodial 
parent;
    (ix) That the employer must withhold from the noncustodial parent's 
income the amount specified in the notice and pay such amount to the 
State disbursement unit within 7 business days after the date the income 
would have been paid to the noncustodial parent.
    (x) That the employer must notify the State promptly when the 
noncustodial parent terminates employment and provide the noncustodial 
parent's last known address and the name and address of the noncustodial 
parent's new employer, if known.

[[Page 259]]

    (2) In the case of an immediate withholding under paragraph (b) of 
this section, the State must issue the notice to the employer specified 
in paragraph (e)(1) of this section within 2 business days of the date 
the State's computerized support enforcement system receives notice of 
income and income source from a court, another State, an employer, the 
Federal Parent Locator Service, or another source recognized by the 
State, or the date information regarding a newly hired employee is 
entered into the State Directory of New Hires, or if information is not 
received by the State's computerized support enforcement system or its 
State Directory of New Hires, within 15 calendar days of the date the 
support order is received if the employer's address is known on that 
date, or, if the address is unknown on that date, within 2 business days 
of the date the State's computerized support enforcement system receives 
notice of income and income source from a court, another State, an 
employer, the Federal Parent Locator Service, or another source 
recognized by the State, or the date information regarding a newly hired 
employee is entered into the State Directory of New Hires, or if 
information is not received by the State's computerized support 
enforcement system or its State Directory of New Hires, within 15 
calendar days of locating the employer's address.
    (3) In the case of initiated withholding, the State must send the 
notice to the employer required under paragraph (e)(1) of this section 
within 2 business days of the date the State's computerized support 
enforcement system receives notice of income and income source from a 
court, another State, an employer, the Federal Parent Locator Service, 
or another source recognized by the State, or the date information 
regarding a newly hired employee is entered into the State Directory of 
New Hires, or if information is not received by the State's computerized 
support enforcement system or its State Directory of New Hires, within 
15 calendar days of the date specified in paragraph (c)(1) of this 
section if the employer's address is known on that date, or, within 2 
business days of the date the State's computerized support enforcement 
system receives notice of income and income source from a court, another 
State, an employer, the Federal Parent Locator Service, or another 
source recognized by the State, or the date information regarding a 
newly hired employee is entered into the State Directory of New Hires, 
or if information is not received by the State's computerized support 
enforcement system or its State Directory of New Hires, within 15 
calendar days of locating the employer's address.
    (4) If the noncustodial parent changes employment within the State 
when a withholding is in effect, the State must notify the noncustodial 
parent's new employer, in accordance with the requirements of paragraph 
(e)(1) of this section, that the withholding is binding on the new 
employer.
    (f) Interstate withholding.
    (1) The State law must require employers to comply with a 
withholding notice issued by any State.
    (2) When an out-of-State IV-D agency requests direct withholding, 
the employer must be required to withhold funds as directed in the 
notice but to apply the income withholding laws of the noncustodial 
parent's principal place of employment to determine:
    (i) The employer's fee for processing the withholding notice;
    (ii) The maximum amount that may be withheld from the noncustodial 
parent's income;
    (iii) The time periods to implement the withholding notice and to 
remit the withheld income;
    (iv) The priorities for withholding and allocating income withheld 
for multiple child support obligees; and
    (v) Any withholding term or conditions not specified in the 
withholding order.
    (3) In other than direct withholding actions:
    (i) A State may require registration for orders from other States 
for purposes of enforcement through withholding only if registration is 
for the sole purpose of obtaining jurisdiction for enforcement of the 
order; does not confer jurisdiction on the court or agency for any other 
purpose (such as modification of the underlying or original support 
order or resolution of custody or visitation disputes); and does

[[Page 260]]

not delay implementation of withholding beyond the timeframes 
established in paragraphs (e)(2) and (e)(3) of this section.
    (ii) Within 20 calendar days of a determination that withholding is 
required in a particular case, and, if appropriate, receipt of any 
information necessary to carry out withholding, the initiating State 
must notify the IV-D agency of the State in which the noncustodial 
parent is employed to implement interstate withholding. The notice must 
contain all information necessary to carry out the withholding, 
including the amount requested to be withheld, a copy of the support 
order and a statement of arrearages, if appropriate. If necessary, the 
State where the support order is entered must provide the information 
necessary to carry out the withholding within 30 calendar days of 
receipt of a request for information by the initiating State.
    (iii) The State in which the noncustodial parent is employed must 
implement withholding in accordance with this section upon receipt of 
the notice from the initiating State required in paragraph (f)(3)(ii) of 
this section.
    (iv) The State in which the noncustodial parent is employed must 
notify the State in which the custodial parent is receiving services 
when the noncustodial parent is no longer employed in the State and 
provide the name and address of the noncustodial parent and new 
employer, if known.
    (4) The withholding must be carried out in full compliance with all 
procedural due process requirements of the State in which the 
noncustodial parent is employed.
    (5) Except with respect to when withholding must be implemented 
which is controlled by the State where the support order was entered, 
the law and procedures of the State in which the noncustodial parent is 
employed shall apply.
    (g) Provision for withholding in all child support orders. Child 
support orders issued or modified in the State whether or not being 
enforced under the State IV-D plan must have a provision for withholding 
of income. This requirement does not alter the requirement governing all 
IV-D cases in paragraph (a)(4) of this section that enforcement under 
the State plan must proceed without the need for a withholding provision 
in the order.

[57 FR 30682, July 10, 1992, as amended at 64 FR 6251, 6252, Feb. 9, 
1999; 68 FR 25304, May 12, 2003]