Income Withholding Order

Income Withholding Order

Income Withholding Order

Federal law requires immediate income withholding in most support orders. Employers must remit within a defined period and face liability for failure to withhold, and limits cap the percentage of disposable earnings.

The order operates across state lines without registration.

Alternative Names:

Wage Garnishment (Support)|IWO

Why it Matters?

Employer liability for failure to withhold makes compliance a direct exposure rather than a courtesy, since an employer that ignored a valid order may owe the amounts it should have withheld. Consumer Credit Protection Act limits cap withholding between fifty and sixty-five percent of disposable earnings depending on circumstances, which means arrearage collection may extend well beyond the current obligation period.

Frequently Confused with

Related terms

Frequently asked questions

What is the employer's exposure?

What is the employer's exposure?

Liability for amounts it should have withheld, which makes compliance a direct obligation rather than a courtesy.

What limits apply?

What limits apply?

Federal caps between fifty and sixty-five percent of disposable earnings depending on circumstances.