Under state law, the Division of Child Support Services (DCSS) has administrative authority to issue limited income withholding orders (LIWOs) against lump sum amounts that are owed to or held on behalf of the person owing child support on active IV-D child support cases that include past due child support (arrearages).
This authority extends to employers, payer, or other holders of non-periodic lump sum payments including, severance pay, sick pay, vacation pay, bonuses, insurance settlements, commissions, stock options, excess proceeds, retroactive disability proceeds, and personal injury awards.
Please follow the procedures below to report pending or potential employee lump sum payments for those employees with current child support payroll garnishments.
Provide the lump sum amount, expected payout date and the employees’ names to DCSS prior to the payment date of the employee bonuses.
Please list your employees by full first and last name, date of birth, social security number or 12- digit ATLAS number. Two of these identifiers are necessary to ensure payment is posted to the correct case.
The Employer Relations Team is responsible for LIWO's against lump sum payments. You may email this information to [email protected] or fax to 480-926-5193.
After DCSS receives your list of eligible employees, you will receive a LIWO for each employee either by fax or mail. Please remember to include your fax number with all your correspondence because these orders cannot be emailed.
Each employee has 10 business days in which to dispute the LIWO interception by using the Administrative Review Request process. The request is included in the LIWO packet.
If employee bonuses are categorized as taxable income, you may withhold up to 50% of the lump sum amount, up to the child support arrears balance reported on the LIWO.If employee bonuses are not taxed, you may withhold up to 100% of the lump sum amount, up to the child support arrears balance reported on the LIWO.
Please remit lump sum payments to the following address and include the IV-D case number (ATLAS), which is located on the LIWO, and consists of 12 digits:
PO Box 52107
Phoenix, AZ 85072-2107
DCSS appreciates your cooperation as well as your willingness to enhance the lives of children.