Employers’ Costs and Charges - continued Withholding Amounts Limits of Health Insurance Premiums Income Withholding Notices In general, you may charge more than one fee Support obligations may be stated as a: The cost of adding the children to an existing from Other States from the same paycheck if you send in the policy or the difference between the self-only and • Fixed-dollar amount (e.g., $50 a week) When you receive an income withholding notice withholdings to separate addresses or with family plan should not exceed 5% of the • Percentage (e.g., 17% of gross income) employee's gross monthly income. See the from another state, and the employee’s principal separate documentation For example, you may • Combination of a percentage with an National Medical Support Notice brochure for state of employment is Wisconsin, you should charge two separate fees if you withhold child additional fixed-dollar amount details. comply with Wisconsin laws for determining the support and withhold R&D fees from the same • Combination of a percentage with a fixed- following: paycheck. You may not charge separate fees for dollar amount minimum Priority for Withholding Medical Support two or more withholdings the same paycheck if the • Combination of a percentage with a fixed- If the total amount of withholding exceeds the • The employer’s fee for processing an income withholdings are all remitted to the Wisconsin dollar amount maximum CCPA limits and the employee is ordered to pay withholding order/notice Support Collections Trust Fund with the same health care premiums, you should follow the set • The maximum amount that may be withheld documentation. Withholding Limits and Priorities priorities to determine the withholdings. See from the employee’s income example 4. The priorities are: • The time frames within which the employer Withholding Notices Withholding limitations for an employee are You may receive income withholding notices 1. Current child support must implement the support order and forward stated on the notices to withhold that you receive. from: 2. Current spousal support child support payments to the issuing state You are legally obligated to withhold the 3. Health insurance premiums or current medical • The priorities for withholding and allocating • A Wisconsin court or child support agency amount ordered by the court. The income income withheld if an employee has multiple support The notice may be sent by mail or Fax. withholding notice you receive might instruct you to support withholding notices 4. Past-Due Support - Or - limit the amount of withholding to the limits under 5. Past-Due Spousal Support A Wisconsin employer who complies with an • A court or agency in another state the federal Consumer Credit Protection Act 6. Past-Due Medical Support Other states’ courts or child support agencies income withholding notice issued by another state (CCPA). If you cannot withhold the ordered 7. R & D Fees may issue income withholding notices directly in accordance with the Uniform Interstate Family amount in full because the withholding would 8. Other Fees and Costs as Specified (e.g., to you or to your registered agents in their Support Act cannot be held liable for withholding exceed the CCPA limit, withhold the amount up to genetic testing, court costs) state. support from an employee’s income. the CCPA limit, notify the agency listed on the When you receive an income withholding withholding order/notice, and, as always, include Special Form and Procedures for A Wisconsin employer who willfully fails to notice, you should provide a copy to the affected the amount of the employee’s gross income. The Withholding R&D Fees comply with an income withholding notice issued employee, and withhold and forward the funds employee is still responsible for any difference by another state is subject to the same penalties between the CCPA limitations and the court order. If your employee owes unpaid R&D fees, you that may be imposed for noncompliance with a according to the terms of the notice. will receive a special R&D fee income withholding The employee may voluntarily agree to have the notice issued by a Wisconsin tribunal. Please Note: the employee has the right to full amount withheld. CCPA limitations are: notice up to three times a year (spring, summer, contest the withholding by notifying the child and fall). This notice includes an R&D Withholding The federal Office of Child Support support agency, but you must obey the withholding • 50% of disposable income if the payer has an (only) form. The form is pre-printed with the Enforcement has developed a standard notice while the appeal is pending, unless directed intact family living with her or him (a spouse employee’s name, KIDS PIN, Social Security order/notice of income withholding to facilitate differently by the court. and/or child) and has no arrears. number, and the amount of R&D fee the employer uniform processing of interstate income • 55% of disposable income if the payer has an should withhold. The R&D Withholding form is withholding. Income Definitions intact family living with her or him (a spouse different from the usual Employer Withholding Gross income includes all of the employee’s and/or child) and has arrears. Coupon/List. The two items are not income from all sources before mandatory • 60% of disposable income if the payer has no interchangeable. Calculators for withholding amounts and deductions for federal, state, local, and Social intact family (a spouse and/or child) living with Security taxes are deducted. R&D fee withholding requirements: priorities are online at: her or him and has no arrears. • You are required by law to withhold unpaid Gross income also includes employee • 65% of disposable income if the payer has no childsupport.wisconsin.gov fees from the next payroll, or as soon contributions to any employee benefit program or intact family (a spouse and/or child) living with thereafter as practicable. There must be profit-sharing and voluntary contributions to any her or him and has arrears. strong justification for any delay beyond the pension or retirement account whether or not the CCPA limits affect the withheld amount for the next payroll. account provides for tax deferral or avoidance. R&D fee and medical support, as well as, • R&D withholdings may be impacted by the Disposable income is that part of the employees with more than one support order. If CCPA limits. Withhold the R&D fees after all earnings of the employee remaining after your employee has one or more Wisconsin income other support orders. deducting federal, state, and local withholding withholding notice, only withhold up to the • If you cannot withhold the full amount of the taxes, and Social Security taxes. Deductions for applicable CCPA limit, see example 3. If your R&D fee from this payroll, submit only the Individual Retirement Accounts, medical expense employee has income withholding notices from amount of the R&D fee that is allowed under accounts, etc., do not reduce disposable income. more than one state, you may need to prorate the the CCPA limits, see example 5. amounts withheld under the limits, see example 6. Calculating Income Withholding Amounts Example 4 Questions? Calculating withholding amount for child support, Wisconsin Employers’ Example 1 insurance premiums, and past-due support within Contacts Guide to Calculating withholding amount for a percentage • For questions about calculating the amounts to CCPA limits and withholding priorities withhold, contact the county/tribal child support Income Withholding order with an additional dollar amount for child’s • Income Withholding Notice for pay period health care premium agency that issued the withholding notice. totals $250: An important component of the Wisconsin • Income Withholding Notice: 17% of gross $150 for current child support Contact information is listed on the withholding Child Support Program is the state statutory income, plus health care for child $50 for health care premium notice and online at requirement that all orders for child support, • Gross income for the weekly pay period is $75 for past-due child support childsupport.wisconsin.gov. maintenance, and family support include a $500, disposable income is $350 • Gross income is $500 • For questions about your Employer provision for immediate income withholding by the • CCPA limits is 60% (60% x $350 = $210) • Disposable income is $420 Withholding List/Coupon, please call the payer’s employer. Income withholding is required • Health care premium is $50/week • CCPA limit is 55% ( 55% x $420 = $231) Wisconsin Support Collections Trust Fund, whether or not the individual is delinquent in • Calculation: • Withhold: weekdays 8:00 AM to 5:00 PM (CST), at: making payments. A court order for child support $500 x 17% = $85 Full $150 for current child support 414-615-2581 (Metro Milwaukee) constitutes an assignment to the agency $50 premium = + $50 Full $50 for health care premium 1-877-209-5211 (outside Metro Milwaukee) designated to receive payments of all income, • Income withholding is $135 Only $31 for past-due child support 1-877-209-5209 TTY including commissions, earnings, salaries, wages, pension benefits, and other money due or to be • For questions about electronic funds transfer, due in the future. Courts or their designated Example 2 Example 5 please call the Trust Fund weekdays 8:00 AM agents must notify employers of the amount of Calculating withholding amount for a percentage Calculating withholding amounts within CCPA to 5:00 PM (CST), at: at: order with a fixed dollar amount minimum limits for a fixed-dollar amount order and a support to be withheld from income. 414-615-2422 • Income Withholding Notice: 17% of gross withholding for R&D Fees for same pay period Current obligations, past-due support income, but not less than $50 per week • Income Withholding Notice for pay period is • For questions about withholding R&D fees, (arrearages), and annual receipt and disbursement please call the R&D information line, (R&D) fees are subject to income withholding. • Gross income for the biweekly pay period is $100 weekdays 8:00 AM to 5:00 PM (CST), at: $500 • R&D withholding notice: $65 Income withholding for child support has • Calculation: • Gross income for the pay period is $250 414-615-2585. priority over any other legal process (e.g., a Percentage of gross income amount • Disposable income is $205 More Information garnishment) against the same income. However, $500 x 17% = $85 • CCPA limit is 60% (60% x $205 = $123) The Wisconsin Employer Guides below are federal tax levies in effect before receipt of an Fixed sum amount is $50 per week x 2 • Withhold: available free from your child support agency and income withholding notice have priority unless the weeks = $100 Full $100 for support are online at childsupport.wisconsin.gov. Child Internal Revenue Service agrees to an alternative • Compare the two amounts ($85 vs. $100) Only $23 for R & D fee support agencies are listed in the phone book priority. • Withhold the greater amount ($100) under “county government” or tribal name and Income withholding orders remain in effect Example 6 online at childsupport.wisconsin.gov. until further notice. You will receive a notice if Example 3 Calculating withholding amounts for two states • Employer’s Overview of the Wisconsin Child the terms of an order change, or when the order is Calculating withholding amount for two within CCPA limits when both notices/orders are Support Program no longer in force. You must keep the income fixed-amount orders within CCPA limits for fixed dollar amounts. • Guide to Submitting Withholding Payments withholding order on file and withhold the stated • Income Withholding Notice 1: $125 per week • Wisconsin Notice: $200 per month • National Medical Support Notice amount whenever the employee receives a • Income Withholding Notice 2: $95 per week • Minnesota Notice: $350 per month Online paycheck. This applies to all employers, including • Gross income for the week is $500 • Gross income is $900/month temporary employment agencies, seasonal • Employers Guide to Child Support and • Total amount due per Notices: $125 + $95 = • Total amount due per Notices: $550 employers, and employers that periodically lay off withholding calculators at $220 per week ($200 + $350) and then rehire employees. childsupport.wisconsin.gov • Disposable income is $420 • Disposable income is $750/month Employers’ Costs and Charges for Income • New Hire Reporting for Wisconsin Employers • CCPA limit is 50% ( 50% x $420 = $210) • CCPA limit is 55% (55% x $750 = $412.50) Withholding at dwd.wisconsin.gov/uinh/ • Withhold: only $210 • Calculation: You may deduct a fee from an employee’s WI Notice is 36% of total ($200 ÷ $550) The Department of Children and Families is an wages to offset withholding costs. You may deduct MN Notice is 64% of total ($350 ÷ $550) equal opportunity employer and service provider. If this fee from the employee’s wages, commission you have a disability and need to access this check, or other sources of income, but not from the • Prorated amount for WI Notice 36% of information in an alternate format, or need it support payment. The fee does not affect the $412.50 = $148.50 translated to another language, please contact employee’s gross income for calculating support • Prorated amount for MN Notice 64% of (608) 266-9909 or (800) 947-3529 TTY (toll free). amounts. By law, the fee must reflect the actual $412.50 = $264 DWSC-11742-P (R. 2/2009) cost, but may not exceed $3.00 per withholding.