Withholding Calculators and Examples

Notice: The administrative code Chapter DCF 150 Child Support Percentage of Income Standard was amended effective July 1, 2018. BCS is in the process of updating information on this site to conform to those changes.

The reliability of the employer calculators depends on the accuracy of the data entered, as well as the employer's understanding of the terms, definitions, and limitations of the calculators. This page will define the terms, limits and priorities for withholding support for Wisconsin orders.

Definitions and Descriptions

Consumer Credit Protection Act Limits (CCPA Limits)

The total amount withheld from a paycheck may not exceed the federal CCPA limits as specified on the income withholding notice. The total amount may include withholding under a notice other than income withholding such as an R&D Notice or National Medical Support Notice. The parent will still owe any remaining balance you are unable to withhold and may request that you withhold the total amount that is due, even if it exceeds CCPA limits.

CCPA limits are:

  • 50% of disposable income if the payer has a second family and does not owe past-due support.
  • 55% of disposable income if the payer has a second family and owes past-due support.
  • 60% of disposable income if the payer does not have a second family and does not owe past-due support.
  • 65% of disposable income if the payer does not have a second family and owes past-due support.

A "second family" is a spouse and/or a child living with the parent.

Disposable income is -The part of earnings that remains after deducting federal, state, and local withholding taxes, and Social Security/Medicare taxes.

Gross Income

All income and earnings from all sources. This income may or may not be taxable. Income can be in the form of money, property, or services.

Health Care Premiums

The actual amount that the employee pays for health insurance. It does not include the portion the employer pays.

Medical Support Payments

An Income Withholding Notice might have a dollar amount listed under medical support. Treat this amount as any other support amount ordered that you send to the Trust Fund.

Unpaid Amount

Any amount that is not withheld because it is above and beyond CCPA withholding limits is an unpaid amount and will become past-due if unpaid by the employee.

Withholding Priorities

If the total amount of withholding exceeds the CCPA limits, notify the agency listed on the withholding notice, and withhold support, up to the CCPA limit, in priority order:

  1. Current Support
  2. Spousal Support
  3. Medical Support
  4. Past-due Support
  5. Past-due Spousal Support
  6. Past-due Medical Support
  7. Other fees and costs as specified (examples: birth costs, genetic testing, court costs).
  8. R&D Fees

Income Withholding Calculators

The calculators require MS Excel software. The shaded cells in these calculators are locked to protect the formulas.

Choose the calculator that matches the type of withholding for your employee. All calculators will determine the amount to withhold with the federal CCPA limits. The CCPA limits will be identified on the Income Withholding Notice.

Two Orders and/or Orders from Two States

Support and the R&D Fee

Support and a Health Insurance Premium

Examples for Calculating Income Withholding

*For all examples below:

Gross income means: All income and earnings from all sources. Gross income may or may not be taxable and can be in the form of money, property, or services.

Disposable income means: The part of earnings that remains after deducting federal, state, and local withholding taxes, and Social Security/Medicare taxes.

Calculating withholding amounts for two states within CCPA limits when both notices are for fixed-dollar amounts.

Scenario:

  • Wisconsin notice is for $200 per month
  • Minnesota notice is for $350 per month
  • Employee's gross income is $900 per month
  • Employee's CCPA limit is 55% of disposable income
  • Disposable income is $750 per month

Calculation:

  • Employee's CCPA limit is 55% of disposable income: 55% x $750 = $412.50
  • Total amount due per notice: $550 ($200 + $350) is above the CCPA limits
  • WI notice is 36% of total ($200 / $550)
  • MN notice is 64% of total ($350 / $550)
  • Prorated amount for WI notice: 36% of $412.50 = $148.50
  • Prorated amount for MN notice: 64% of $412.50 - $264.00
  • Withhold $148.50 and remit to Wisconsin
  • Withhold $264.00 and remit to Minnesota

Calculating withholding amounts within CCPA limits for a fixed-dollar amount and a withholding for R&D Fees.

Scenario:

  • Income withholding notice: $100 per bi-weekly pay period
  • R&D withholding: $35
  • Total amount: $135 for the bi-weekly paycheck
  • Employee's CCPA limit is 60% of disposable income
  • Gross income for biweekly pay period is $250
  • Disposable income is $205

Calculation:

  • Employee's CCPA limit is 60% of disposable income: 60% x $205 = $123
  • Compare withholdings to CCPA limits:
    • Income withholding notice: $100 (below the CCPA limit)
    • With R&D withholding: $135 (above the CCPA limit)
  • Prorate the R&D fee within CCPA limit
    • $123 - $100 = $23 R&D withholding
  • Withhold $23 for the R&D fee

Calculating withholding amounts for child support, insurance premiums, and past-due support within CCPA limits and withholding priorities.

Scenario:

  • Income withholding notice for pay period totals: $275:
    • $150 for current support
    • $50 for health care premium
    • $75 for past-due support
  • Gross income is $500
  • Disposable income is $420
  • CCPA limit is 55%

Calculation:

  • CCPA limit is $231 (55% x $420)
  • Withhold:(up to CCPA limit)
    • Full $150 for current support
    • Full $50 for health care premium
    • Only $31 for past-due support