Section 31-16-15-3.5 - Notice to withhold income(a) Except as provided under section 2.5(c) of this chapter, a Title IV-D agency shall issue a notice to withhold income to an obligor when the Title IV-D agency implements an income withholding order under section 2.5(a) or 2.5(b) of this chapter. The notice is sufficient for all future income withholding until the child support obligation is fully satisfied.(b) The notice under subsection (a) must contain the following: (1) A statement that income withholding has commenced, and if the notice is provided for an income withholding order issued under section 2.5(b) of this chapter, that the stay has been lifted.(2) A statement that an income withholding order will be sent to all current and future income payors.(3) If applicable, the amount of child support that the obligor is in arrears.(4) A statement that the income shall be: (A) withheld by a current and future income payor from the obligor's income for the payment of child support; and(B) forwarded to the state central collection unit with a statement identifying the:(i) cause number for the obligee;(ii) name of the obligor;(iii) name of the obligee with the applicable income withheld for each obligee forwarded from the income payor; and(iv) Indiana support enforcement tracking system (ISETS) or its successor statewide automated support enforcement system number for each obligee.(5) A statement that the total amount of income to be withheld by the Title IV-D agency under the income withholding order is the sum of:(A) the obligor's current child support obligation; plus(B) the amount of any arrearage payment ordered by the court; plus(C) an additional amount as determined under section 2.5(f) of this chapter for: (i) any arrearage that has not been adjudicated, if no arrearage has been adjudicated previously; or(ii) any additional arrearage that has not been adjudicated and accrues since the last adjudication of arrearage by the court; plus(D) a fee of two dollars ($2), which must be paid at the income payor's option to the income payor each time the income payor forwards income to the state central collection unit.(6) A statement that:(A) the total amount withheld under the income withholding order may not exceed the maximum amount permitted under 15 U.S.C. 1673(b);(B) the income withholding order applies to the receipt of any current or subsequent income from a current or future income payor;(C) the obligor may contest the Title IV-D agency's determination to implement an income withholding order by making written application to the Title IV-D agency not more than twenty (20) days after the date the notice under this section is mailed to the obligor;(D) the only basis for contesting the implementation of an income withholding order is a mistake of fact;(E) if the obligor contests the Title IV-D agency's determination to implement the income withholding order, the Title IV-D agency shall schedule an administrative hearing;(F) an income payor shall: (i) begin withholding income not later than the first pay date after fourteen (14) days following the date the income withholding order is received by the income payor; and(ii) report to the state central collection unit the date on which the income was withheld from the obligor's income;(G) if an income payor is required to withhold income from more than one (1) obligor, the income payor may combine the withheld amount of income into a single payment for all obligors who are required to make payments to the state central collection unit if the income payor identifies the part of the single payment that is attributable to each individual obligor;(H) if the obligor has: (i) more than one (1) income withholding order against the obligor; and(ii) insufficient disposable earnings to pay the amount of income withholding for all income withholding orders; an income payor shall distribute the withheld income pro rata among the persons entitled to receive income under the income withholding orders, giving priority to a current income withholding order;
(I) an income payor shall honor all withholdings to the extent that the total amount withheld does not exceed limits imposed under 15 U.S.C. 1673(b);(J) the income withholding order is binding upon the income payor until further notice by the Title IV-D agency;(K) an income payor that: (i) discharges the obligor from employment;(ii) refuses to employ the obligor;(iii) takes disciplinary action against the obligor employed by the income payor; or(iv) otherwise discriminates against the obligor; because of the existence of an income withholding order or the obligations imposed upon the income payor by the income withholding order is subject to a penalty not to exceed five thousand dollars ($5,000) payable to the state and recoverable in a civil action;
(L) if an income payor fails to withhold income in accordance with the income withholding order, the income payor is liable for:(i) the accumulated amount the income payor should have withheld from the obligor's income; and(ii) any interest, attorney's fees, and costs;(M) an income withholding order under this chapter has priority over any secured or unsecured claim on income, except for claims for federal, state, and local taxes; and(N) the income payor must notify the Title IV-D agency if the obligor: (i) ceases employment with; or(ii) no longer receives income from; the income payor, not later than ten (10) days after the date the obligor's employment or income ceases, and provide the obligor's last known address and the name and address of the obligor's new income payor, if known, to the Title IV-D agency.
(c) If the Title IV-D agency issues a notice to withhold income to the obligor under this section, the Title IV-D agency is not required to provide further notice to continue to implement or amend the income withholding order unless the income withholding order is stayed by the court under section 0.5(c) of this chapter.Amended by P.L. 123-2014, SEC. 6, eff. 7/1/2014.Amended by P.L. 128-2012, SEC. 40, eff. 7/1/2012.As added by P.L. 103-2007, SEC.28.