Interstate Wage Withholding Mechanics

Interstate withholding usually doesn't need a second court case — the IWO can go straight to the out-of-state employer.

Direct vs. registered

In the direct method, the agency sends the Income Withholding Order straight to the employer with no court involvement, and the employer remits to the issuing state's SDU. Registration is only needed when you want court-level enforcement tools in the responding state.

What a compliant IWO contains

Employee and employer names and addresses, the case number and issuing tribunal, the current support amount and arrears installment, the payment destination, and the disposable-earnings cap and fee permissions. That cap follows the federal Consumer Credit Protection Act — 50% to 65% of disposable earnings depending on arrears and whether the obligor supports another family (15 U.S.C. § 1673(b)).

Processing, multiple orders, and job changes

Withholding begins on the first pay date after the employer receives the IWO, and the SDU should post within 10–14 days. With multiple orders, the employer prorates by the work state's priority rules — provide every case number to prevent duplicate remittances. An IWO doesn't transfer automatically on a job change, so serve the new employer immediately and bridge with portal payments. Whether bonuses and severance are reached depends on the work state's law, so include a percentage clause for irregular pay.

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