Employers & Payroll Service Providers

Liability & Statutory Cites

Liability

Employers can be held liable if they do not comply with income withholding notices. An employer who fails to withhold income after receiving a withholding notice or who fails to forward the withheld money may be liable for contempt of court and a financial penalty. Courts may also impose a civil forfeiture on an employer who does not withhold money or who does not send the money to the specified location within five (5) days. Courts may hold an employer responsible for the amounts of support they fail to withhold.

Employers can also be held liable for failing to report New Hire information. The law provides for a penalty of up to $25 for each employee the employer fails to report. The employer can also be held liable for a fine of up to $500 for failing to report or reporting false information because of a conspiracy with an employee. Employers will be notified of any potential penalties and will have an opportunity to contest their application.

An employer may be subject to a fine of up to $500 for discharging an employee from employment, refusing to employ, or taking disciplinary action against any employee because of income withholding for child support. The employer may also be required to make full restitution to the aggrieved person, including reinstatement and back pay.

Statutes & Regulations

• Combining payments – §767.75(7) Wis. Stats.
• Discrimination – §767.75(6)(c); §973.20, Wis. Stats.
• Employers’ costs and charges – §767.75(3h), Wis. Stats.
• Employer liability for income withholding – Chapters 767, 778, and 785, Wis. Stats.
• Faxing income withholding notices – §767.75(2r), Wis. Stats.
• Forwarding withholdings – §767.75(3h), Wis. Stats.
• Gross income reporting – § 767.75(3h), Wis. Stats.
• Income definitions – Administrative Rule DCF 150.02(13)
• Interstate income withholding – §769.501, 769.504, 769.505, Wis. Stats.
• Medical insurance –§767.75(3h); §767.513, Wis. Stats.; federal Omnibus Budget Reconciliation Act of 1993; federal Employee Retirement Income Security Act.
• New Hire Reporting – §103.05, Wis. Stats.
• Priority (legal process against same income) – §767.75(4), Wis. Stats.
• Providing information – §49.22(2m), Wis. Stats.
• Termination notification – §767.75(6)(b), Wis. Stats.
• Withholding amounts – §767.75(1)(b); § 767.75(1f), Wis. Stats.
• Withholding limits – 45 CFR 303.100(a)(3); 15 u.s.c.1673(b); §767.75(1f), Wis. Stats.
• Withholding R&D – §767.75(2m), Wis. Stats

• Wisconsin Statutes (e.g.,§.767.265, Wis. Stats.)
• US Codes (e.g., 15 USC 1673)
• Federal law
• Federal regulations (e.g., 45 CFR § 303.100).

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