Income Withholding Information An important component of the Wisconsin Child Support Program is the state statutory requirement that all orders for child support, maintenance and family support include a provision for immediate income withholding by the payer's employer. Income withholding is required whether or not the individual is delinquent in making payments. Current obligations, past-due support, and annual receipt and disbursement fees are subject to income withholding per Wis. Stat. s. 767.75. Timelines for Withholding Support Employers must begin withholding support no later than the first pay period occurring five working days from the date on the income withholding notice. All support and support-related payments must be submitted to the Wisconsin Support Collections Trust Fund (WI SCTF) within five days of the withholding date. Income withholding orders remain in effect until the employer is notified otherwise. You will receive a notice if the terms of the order change, or when the order is no longer in force. You must keep the income withholding notice on file and withhold the stated amount whenever the employee receives a paycheck. This applies to all employers. Costs and Charges for Income Withholding You may deduct a fee from an employee's wages to offset withholding costs. You may deduct this fee from the employee's wages, commission check, or other sources of income, but not from the support payment. The fee does not affect the employee's gross income for calculating support amounts. By law, the fee must reflect the actual cost, but may not exceed $3.00 per withholding. In general, you may charge more than one fee from the same paycheck if you send in the withholdings to separate addresses or with separate documentation, such as: Withholding child support and withholding R&D Fees from the same paycheck (requires separate documentation and mailing). Withholding child support from the same paycheck for two child support orders if the orders are from two different states (remitted to two different locations). You may not charge separate fees for two or more withholdings from one paycheck if the withholdings from one paycheck are all remitted to the WI SCTF with the same documentation. For example: Withholding for two Wisconsin child support orders. Withholding for current and past-due support. You may not charge a fee for sending withheld premiums to an insurance provider. Electronic Income Withholding Order (e-IWO) Information Electronic Income Withholding Order (e-IWO) is a federal program where employers can receive income withholding order notices (original, amended or terminated) electronically. The details of the program can be found at http://www.acf.hhs.gov/programs/css/employers/e-iwo. If you are already signed up for e-IWO you will automatically receive electronic notices from Wisconsin. Wisconsin will start sending electronic income withholding orders as of September 23, 2015. Employers can respond to an income withholding order request or report employee terminations through e-IWO. This is a great way to reduce paper processing time and mail expenses. If you are not signed up, see the Office of Child Support Enforcement website to do so. Income Withholding Notices Withholding R&D Fees Submitting Income Withholdings There are several options available for submitting income withholding funds to the Wisconsin Support Collections Trust Fund (WI SCTF). These payments may be submitted electronically using electronic funds transfer (EFT), online using Expert Pay, or by mail using an employer coupon or list. Submitting Withholdings Electronically Option 1 - Online Option 2 - Electronic Funds Transfer All services are free after a one-time $2.50 registration fee ExpertPay creates the required NACHA file and sends your posting data and payment to the WI SCTF. To register go to www.expertpay.com; registration tab. For more information contact ExpertPay at 1-800-403-0879 or Email customer service. (Processing timeframe: The first payment may take up to 11 days due to registration requirements. After that, payments may take up to 7 business days to reach the WI SCTF.) Use your current payroll software to create an ACH file in the required NACHA approved CCD+ or CTX820 format. This format is standard and required for all states, and provided free of charge. For details contact the EFT Coordinator, at 414-615-2423, or by email. (Processing timeframe: Payments reach the WI SCTF the next business day following the settlement date selected by the employer.) Submitting Withholdings by Mail You may submit the withheld support by mail. You should receive a pre-printed Employer Withholding List or Coupon for employees with a Wisconsin support order. Coupons are sent to employers with a limited number of employees with support orders and lists are sent to employers who have several employees with support orders. For support withheld for a Wisconsin order, mail your check (payable to WI SCTF) along with your list or coupon to: WI SCTF Box 74400 Milwaukee, WI 53274-0400 The templates below can be used in lieu of the pre-printed withholding list or coupon. These templates include all required fields. The withholding coupon is used for one employee. The withholding list is used for multiple employees. Required Information for Coupons/Lists The items listed below are critical to ensure support payments are distributed correctly, especially if your employee has more than one court order. Information about your company: Company Name Your Company's KIDS Employer ID (listed in item 10, on page 2 of the withholding notice) Information about the employee: Withholding date - the date you withheld the support obligation amount from the employee's wages Employee's name - first name, middle initial, and last name Employee's case identification PIN or Social Security Number/Individual Tax ID Number Amount withheld - The total support amount you withheld from each employee's wages. If an employee has more than one Wisconsin support order, add the amounts together and list the total. Questions? Contact the Employer Line at 1-877-209-5211 Modifying a Withholding Coupon or List Complete and return the changed list or coupon with your payment. Please make sure the amount of the check equals the amount noted on your withholding list/coupon. Note any changes that should be made: If you no longer want to receive the list, mark "x" in the "Discontinue Lists" box. If your business address is incorrect, mark "x" in the "Address Change" box. Write your correct address on the face of the withholding list/coupon. To add a new employee, or an employee with a new income withholding order: If you currently receive the Employer Withholding List/Coupon for one employee, you may download a coupon for the additional employee, or you may create your own list/coupon for an additional employee. This list/coupon must contain the same required information as the Employer Withholding List/Coupon. The following month you will receive a list/coupon that includes both employees' names. If you currently receive the Employer Withholding List/Coupon for more than one employee, add the new employee's name and the related data to the "Added Employee Table" in the section labeled "Withholding List Changes Coupon." You must also add all the required information for the added employee. Your next month's withholding list/coupon will have the added employee's name. To remove an employee name, mark "x" in the "No Longer Employed" box. If known, please write the termination date directly below the employee's name. Do not remove the name if the employee is temporarily laid off, receiving worker's compensation/disability, or is a season worker and will return next season. Questions Parents ask about Income Withholding Why can't I just write the checks myself? Wisconsin law requires income withholding. Generally, only self-employed parents do not use income withholding. Those who are self-employed might need to arrange for automatic payments of support from a bank account. My employer is not happy about the income withholding because it creates more paperwork. I am worried about losing my job. Under the law, your employer may not fire you because of income withholding. If you can show that income withholding causes you irreparable harm, you may ask the court for another payment option. Your request to the court must be made within 10 days of the income withholding notice being mailed to you. What happens if there is a mistake in income withholding? What if the employer takes too much money or doesn't send any money in to the Trust Fund? If the amount withheld does not match the amount on your income withholding notice, you should contact your employer. You are responsible for your court ordered child support, even if your employer fails to withhold child support, withholds the wrong amount, or does not send the support to the Trust Fund. Employers are required to send withheld support to the Trust Fund within five days of the withholding. An employer who withholds support but does not send the money to the Trust Fund can be found in contempt of court. You should regularly check your payment/account information to make sure your payments are sent to the Trust Fund. I work two jobs. Will both employers withhold child support? They may or may not. The total amount of support that is withheld during a month should equal the amount stated on your income withholding notice whether one or both of your employers withhold support.