Income Withholding Order (IWO) Information for Attorneys
Employers across the nation have long asked Congress to enforce standardized child support Income Withholding (IWO) forms as well as having one central location in every state for remittance of income withholding payments. The federal Office of Child Support Enforcement (OCSE) in conjunction with Office of Management and Budget (OMB) issued new rules regarding these two issues and slightly modified the standardized federal Income Withholding forms.
Changes to the mandated form were again made in 2015, and the correct form can be found below. Employers can begin rejecting IWOs that are not the new version on July 31st, 2015. The changes made to the 2015 version were not substantive, but did include somewhat significant formatting changes.
The two most important changes
- All child support income withholding orders must be issued on the new OMB-approved IWO form (OMB 0970-0154). This form cannot be modified.
- Payments must be directed to each State’s statewide disbursement unit (SDU). Indiana’s SDU is the Indiana State Central Collection Unit (INSCCU).
To make this transition easier, the Child Support Bureau (CSB) of the Indiana Department of Child Services provides an Indiana-specific version of the new IWO for use by courts, private attorneys, and pro se litigants.
The following includes more detail on the new rules created in 2011. They depend on whether the IWO was issued before or after May 31, 2011. The key changes are as follows:
On IWOs issued on or after May 31, 2011 - New IWOs
- The IWO must direct payments to INSCCU. If the IWO does not direct payments to INSCCU as required by federal law, then the employer must reject the IWO and return it to the sender,effective immediately.
- The IWO must be on the revised federally approved form. If the employer receives a document to withhold income that is not issued on the OMB-approved IWO form as required by federal law then the employer must reject the document and return it to the sender, effective May 31, 2012.
- If an IWO is received after May 31, 2011, but issued before May 31, 2012, and directs payment to INSCCU but is not on the federally approved OMB form, the employer should honor the order and contact the sender of the IWO to request a revised IWO on the new OMB-approved form. The employer or income payor should honor the order until the revised IWO is received.
On IWOs issued before May 31, 2011 - IWOs already processed by the employer
- If the IWO does not direct payments to INSCCU, then the employer or income payor should contact the sender of the IWO to request a revised IWO directing payment to INSCCU. The employer or income payor should continue to send payments to the non INSCCU address until the sender issues a revised IWO directing payment to INSCCU.
- If the IWO is not issued on the federally approved IWO form as required by federal law and the order presents a problem for the employer or income payor, such as having insufficient information to process the IWO, or the order has been modified, then the employer or income payor should contact the sender to request an OMB-approved IWO form. The employer or income payor should continue withholding income until a new OMB-approved IWO form is received.
An employer can reject an IWO under the new federal regulations for the following reasons:
- If on May 31, 2012, or thereafter, the sender of the IWO has not used the OMB-approved form;
- If a newly issued IWO instructs the employer to send a payment to an entity other than INSCCU;
- If the form does not contain all the information necessary for the employer to comply with the withholding;
- If the form is altered or contains invalid information; or
- If the amount to withhold is not a dollar amount.
One exception to an employer rejecting an IWO is that if the new IWO is related to an initial child support order that was issued prior to January 1, 1994, never modified, has no arrearages, and is not associated with a IV-D case; then the employer must follow the payment instructions on the IWO form it receives.
The INSCCU address for employer payments is:
PO Box 6219
Indianapolis, IN 46206-6219
Please note that the above address is only for employer payments.
Non-custodial parent personal checks or money orders are to be sent to:
PO Box 7130
Indianapolis, IN 46207-7130
Senate Bill 6
Senate Bill 6 (SEA6) was signed into law on Thursday, May 9th of 2013 and took effect the same day. The Act consolidated the sections on child support, medical support, and educational expense orders that were in the Paternity code (Title 31, Article 14) with the analogous sections in the Support of Children and Other Dependents code (Title 31, Article 16). With that consolidation, the Paternity code no longer contains its own, separate language regarding child support, medical support, and educational expense orders. SEA6 eliminates both the duplication and the discrepancies between the two articles.
The conversion table below shows the corresponding former and new code cites for Title 31, Articles 14 and 16.
Senate Bill 6 Code Conversion Chart
|Former Code Cite||New Code Cite(s)|