Interstate Wage Withholding Mechanics

When parents move across state lines, wage withholding doesn’t have to stall. UIFSA allows direct income withholding to an out‑of‑state employer without opening a new court case first. This article explains how interstate payroll deductions actually work so you can restart payments fast and keep ledgers clean.

Direct vs. registered withholding. With “direct withholding,” the party or agency sends the Income Withholding Order (IWO) straight to the employer in the work state. No local judge needs to sign anything. The employer follows the work state’s payroll rules (caps and remittance timelines) but remits to the issuing state’s SDU with your case number. By contrast, if you “register for enforcement,” the responding state opens a local file and issues a local IWO; this is helpful when you need court‑level tools (liens, license actions) or a hesitant employer.

What the employer sees. A compliant IWO includes the names, last known addresses, case number, issuing tribunal, current support amount, arrears installment, and instructions for where to send payments. It also lists the maximum percentage of disposable earnings permitted and whether fees may be deducted. Payroll departments like clarity—send a cover email with the pay cycle and a phone number for the agency or your attorney.

Caps, priorities, and multiple orders. The work state’s law sets the percentage cap on disposable earnings. If the employee has multiple IWOs (e.g., another support case or creditor garnishment), the employer prorates under the work state’s priority rules. Provide all case numbers to avoid duplicate remittances and ask for written proration details so you can reconcile postings.

Timing and start date. Employers typically begin withholding on the first pay date after receiving the IWO, subject to their processing cutoffs. Until the first withheld payment posts to the SDU, the payer should make portal payments manually to avoid gaps. Confirm with payroll the expected first deduction date and calendar a quick check of the SDU portal for that week.

Bonuses, commissions, and lump sums. Ask payroll to flag irregular compensation (bonus runs, severance, unused PTO payouts). Many work states require withholding from these payments; others need explicit order language. Include a percentage clause for bonuses and attach a sample calculation. For contractors paid on 1099s, serve the entity that controls payouts and consider a court‑issued order if the company insists.

Job changes and portability. When employment changes, the existing IWO does not jump automatically. The payer must inform the agency or the other parent of the new employer. Send a fresh IWO immediately and bridge with portal payments for the first pay cycle. Keep an “IWO packet” ready on your desktop so you can resend within an hour of a new job offer.

Common pitfalls.

• Using nicknames or outdated addresses that cause employer rejections. 

• Forgetting to include the SDU case number on the remittance—money can vanish into suspense accounts. 

• Letting the old employer keep deducting after termination; request a stop notice in writing.

Record‑keeping for both sides. Employers should keep copies of IWOs, proration memos, and remittance reports. Parents should keep paystubs showing the deduction and verify the SDU posting date. If deductions appear on the check but not in the SDU within 10–14 days, ask payroll for the batch number and send it to the agency to trace.

Bottom line. Interstate withholding is designed to be plug‑and‑play: serve a complete IWO on the out‑of‑state employer, monitor the first deduction, and keep the SDU case number front and center. Use registration only when you need heavier tools; otherwise, direct withholding gets money flowing fastest.