Withholding Priorities:
 Federal
and state laws require child support withholding to take priority
over most income attachments. For example, a non-tax federal
debt, state and local tax levies, creditor garnishments, and
voluntary assignment or income to pay a loan DO NOT take priority
over child support withholding.
Special Circumstances:
Bankruptcy:
In the case of bankruptcy, the court-appointed trustee will
most likely make the child support payment. However, you should
continue to withhold child support until you receive official
notification from the Department of Child Support Services
or the Bankruptcy Court.
IRS Tax Levy:
The order of service controls the priority of a federal
tax levy. When the IRS levy has been served first, it takes
priority over the child support Income Witholding Order(IWO). When the
child support Income Witholding Order(IWO) has been served first, it takes
priority over the IRS levy.
Franchise Tax Board Levy:
If you receive a child support Income Witholding Order(IWO) first, you
should continue to send the court ordered amount to the Department
of Child Support Services and instruct your employee to contact
the child support officer who has been assigned to their case
to address this matter.
If you receive the Franchise Tax Board 50% levy first, you
must comply with that order until you receive a release from
them. You should immediately have your employee contact their
child support officer to resolve or clarify this issue. |
