Indiana Child Support
Overview
Indiana employers must begin withholding for child support no later than the first pay period that occurs 14 days after receiving a child support order. Employers must remit the withheld amount to the state Central Collection Unit when employees are paid. Other types of garnishments are covered in a separate state summary: Indiana Garnishment.
Coverage
All public and private employers are covered. This summary is restricted to coverage of private employers.
Effective July 1, 2016, a franchisor is not considered to be an employer or co-employer of a franchisee or its employees, unless the franchisor agrees in writing to assume that role
Amount Subject to Withholding
The amount subject to withholding under a child support order is 50 percent of disposable income if a noncustodial parent is supporting a second family or 60 percent if there is no second family.
Lump sum payments: Withholding for child support is required for accumulated sick pay, vacation pay, accumulated commissions, bonus payments in addition to regular pay, severance payments and other lump-sum payments. To determine the amount of the lump sum payment subject to child support withholding, employers are to identify the amount of support required each week and multiply that amount by the number of weeks represented by the lump-sum payment. The total withheld amount is not to exceed federal limits.
Withholding Notices and Orders
Multiple Child Support Orders
If more than one person is claiming child support from the same employee and the employee has insufficient disposable earnings to pay the amount required by all orders, employers can distribute the withheld earnings pro rata between orders.
Out-of-State Orders
Employers must treat support orders issued in another state in the same fashion as in-state orders.
Foreign orders: Employers that receive income withholding orders or notices issued by another country are required to honor the terms of the foreign orders or notices. This requirement is part of an international treaty the United States signed Sept. 29, 2010. Employers are required to apply the law of the foreign country that issued the order in determining:
• the nature, extent, and amount of current payments;
• the time period within which withholding must take place;
• how arrears are calculated and paid and
• how interest is accrued and paid.
Frequency of Withholding
Employers must begin withholding no later than the first pay period that occurs 14 days after being served and must remit the withheld amount to the state Central Collection Unit when employees are paid, including with each payment a statement identifying:
• each case number,
• each employee's name and
• each employee's Social Security number.
Employers can consolidate amounts withheld from more than one employee's wages into a single payment accompanied by an itemized accounting identifying the part of the single payment attributable to each employee.
Electronic Payments
Employers required to withhold income from more than one employee and that employ more than 50 employees must make payments to the state Central Collection Unit through electronic funds transfer. Payments for all child support orders served can be combined into a single payment that separately identifies and attributes each individual payment to the proper noncustodial parent.
Medical Support Orders
Employers will receive a National Medical Support Notice when employees are ordered to provide health insurance coverage for children.
Priority of Support Orders
Child support orders have priority over all other garnishments and assignments except claims for federal, state, and local taxes. For employees having more than one withholding order, and whose disposable earnings are insufficient to pay the total amount required by the orders, employers are to calculate prorated amounts among the persons entitled to receive payment under the income withholding orders, giving priority to orders for current child support to the extent that the total amount withheld does not exceed federal limits and that all child support orders are honored.
Administrative Fee
Employers can collect an administrative fee of $2 per support payment.
Notification Requirements
Employers must notify the court within 10 days after an employee subject to support withholding terminates employment and provide the employee's last known address and the name and address of the new employer, if known.
Discrimination Prohibition
Employers are prohibited from refusing to hire, taking disciplinary action or discharging employees because of the existence of a child support order.
Administration/Enforcement
The Child Support Bureau of the Indiana Department of Child Services enforces support orders.
Penalties/Remedies
Employers are liable for all support not withheld and remitted following receipt of an order. Employers required to make payments electronically that fail to do so can be fined $25 per employee per pay period.
Employers that discharge or otherwise discipline employees or that refuse to hire applicants subject to support orders may be fined up to $5,000.
Reference Citations
Coverage: Ind. Code §§31-9-2-57, 31-16-15-0.5
Ind. Code §23-2-2.5-0.5
Amount Subject to Withholding: Ind. Code §§31-16-15-2.5, 31-16-15-2.7, 31-16-15-19
Withholding Notices and Orders: Ind. Code §§31-16-15-2.6, 31-16-15-2.7, 31-16-15-5.5, 31-16-15-17, 31-16-15-29
Frequency of Withholding: Ind. Code §31-16-15-2.7
Electronic Payments: Ind. Code §31-16-15-16
Medical Support Orders: Ind. Code §§31-16-6-4, 31-16-15-4.5
Priority of Support Orders: Ind. Code §§31-16-15-2.7, 31-16-15-17, 31-16-15-27
Administrative Fee: Ind. Code §§31-16-9-0.3, 31-16-15-2.7,31-16-15-7.5
Notification Requirements: Ind. Code §31-16-15-18
Discrimination Prohibition: Ind. Code §31-16-15-2.7
Administration/Enforcement: Ind. Code §31-16-15-23
Penalties/Remedies: Ind. Code §§31-16-15-2.7, 31-16-15-23, 31-16-15-25
Web References
Indiana Laws:
Indiana Child Support Bureau: http://www.in.gov/dcs/support/index.html
Related Information
Agency information: Indiana Department of Child Services, Child Support Bureau, P.O. Box 7083, Indianapolis, Ind. 46207; 800-840-8757
Indiana Central Collection Unit, P.O. Box 6219, Indianapolis, Ind. 46206
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Created: July 2017