Child Support Withholding and Fees
Arrearages, Court Costs, Administrative Fees, Terminated Employees
Arrearages
If an employee (obligor) has been delinquent in paying child support, additional payments for arrearages (past due, unpaid child support owed by the non-custodial parent; if the parent has arrearages, she or he is said to be “in arrears”) may be included in the child support order. This means that the employee is obligated to pay the current child support and must also pay a specified amount each month towards unpaid prior child support or arrearages.
Agencies must deduct arrearages according to guidelines established by the OAG regarding the order for the deduction and the disposable earnings available. Disposable earnings are the part of the earnings of an individual remaining after the deduction from those earnings (see definition below) of any amount required by law to be withheld, nondiscretionary retirement contributions, and medical, hospitalization and disability insurance coverage for the employee and the employee’s children.
Earnings are defined as a payment to or due an individual, regardless of source and how denominated. The term includes a periodic or lump-sum payment for: wages, salary, compensation received as an independent contractor, overtime pay, severance pay, commission, bonus and interest income; payments made under a pension, an annuity, workers’ compensation, and a disability or retirement program; and unemployment benefits.
Agencies should work with their internal legal counsel to resolve any questions related to specific orders containing arrearages.
Court Costs
Courts are authorized to charge a fee to cover any court-ordered attorney fees and costs resulting from an action to enforce child support withholding orders. Agencies must also deduct any court-ordered fees according to the instructions in the order. Agencies should involve their internal legal counsel to resolve any questions related to court-ordered costs.
Administrative Fees
An employer (specifically including a governmental entity, defined as “the state, a political subdivision of the state, or an agency of the state”) may deduct an administrative fee of not more than $10 each month from the employee’s disposable earnings in addition to the amount withheld as child support.
Terminated Employees
When an employee subject to a withholding order terminates, the employing agency is required to notify the entity that ordered child support payments. Orders may include instructions for such notification, including the date of termination and the name of the subsequent employer if known. This information must be reported as soon as possible after termination.
Sources
Texas Family Code, Sections 101.012, 101.014, 158.011(a)-(b), 158.201-158.203, 158.206(b), 158.210, 158.405, 158.501(a), 158.501(b), 158.504(b), 159.101(6), (19), (22), 159.501, 159.502(b), (c); Texas Family Code, Sections 101.010, 101.011-101.012, 101.014, 101.022, 158.204; 42 United States Code, Sections 666(a)(1)(A), (b)(6)(A)(i).