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When to Start Withholding:
Response: Ten days after service of the order. Family Code Section 5233 specifies that unless a court order states a later date, beginning as soon as possible, but no later than ten days after service, the employer shall commence withholding.
When to Send Payment:
Response: Seven business days after commencement of withholding. Family Code Section 5235(c) requires the employer to send the amounts withheld to the obligee within the timeframe specified in federal law at 45 Code of Federal Regulations (CFR), Section 303.100(e)(1)(ii).
Response: State, federal, and local taxes; Social Security; Medicare; and disability insurance. Union dues and payments to public employee’s retirement systems, provided that the deductions are required as a condition of employment. Title 22 California Code of Regulations (CCR), Section 110226, defines “disposable earnings” as income that is subject to withholding left after making mandatory deductions for taxes including state, federal, local, social security, medicare taxes and union dues, along with deductions for disability insurance and payments to public employees’ retirement systems, provided that the deductions are required as a condition of employment.
Exception to federal CCPA limits:
Response: Cannot exceed 50% of obligor’s disposable earnings. Family Code Section 5246 (e)(2) specifies that the obligor has a right to contest the income withholding order if the withholding exceeds the maximum permitted by Section 1673(b) of Title 15 of the United States Code (50% of net disposable earnings).
Allocation of multiple orders:
Response: Priority is given to current child support first, then to the liquidation of arrearages. Family Code Section 5238(b)(2) specifies that if 50 percent of an obligor’s net disposable income will not pay in full all of the assignments for support, then the employer shall prorate it first among all of the current support assignments in the same proportion that each assignment bears to the total current support owed. Subsection (b)(3) specifies that the remainder shall be applied to the liquidation of arrearages in the same proportion that each assignment bears to the total arrearages owed.
When to send termination notice (of employees with orders only):
Response: Within 10 days of becoming aware that an income withholding order should be terminated. 22 CCR, Section 116106, requires local child support agencies to provide the employer with written notification within 10 days of when the circumstances specified in this section occur (i.e. child emancipates), to terminate an income withholding order.
How long to retain order after employees termination:
Response: California does not have a state law or policy that regulates the amount of time an employer should retain a copy of the income withholding order after an employee/obligor is terminated. Local child support agencies, however, are required under 22 CCR, Section 111450, to retain all closed Title IV-D case records for four years and four months from the date of case closure.
Maximum administrative fee (that may be charged by employer):
Response: $1.50 for each payment made pursuant to the order. Family Code Section 5235(d), specifies that the employer may deduct from the earnings of an employee the sum of $1.50 for each payment made pursuant to the order.
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