CLTA News Express
An Express Article from the California Land Title Association
New Rules For Remitting Child Support Wage Assignments Do Not Apply to Liens
Bulletin 06/07-9 July 19, 2006
The Department of Child Support Services is implementing federal payment processing requirements that change how employers handle employee child support wage assignments. Today, child support payments previously handled by local child support agencies are now being processed at a single location by the State Disbursement Unit (SDU). The summer the next phase of implementation begins when employers start sending all employee child support wage assignment payments directly to the SDU. This will fundamentally change how child support payments are collected and processed statewide. The following is a brief overview of the changes:
Starting in September, 2006, employers will begin to send all wage withholding child support payments to the SDU.
This will include all wage assignments from private support orders as well as those previously sent to local child support offices. Redirection to the SDU is required by federal law.
Starting in August, 2006, the automated system will match each payment to the person who made the payment and to each of their cases. How a payment is divided between cases depends on many things, including how much child support is owed and paid, and whether the payment(s) are for current or past-due child support. This is called “statewide allocation” of payments and is required by federal law. Statewide allocation ensures that more families receive the financial support they are legally entitled to.
Title companies should not confuse the way in which employee wage withholding payments will now be made with the way lien payments are made, which remains unchanged. Specifically, redirection only applies to employee wage withholding payments NOT lien payments. Lien payments must continue to be sent to local child support agencies. An employer pamphlet and fact sheet on the new wage withholding process can be viewed by clicking on:
- Employer Pamphlet (PDF)
- Fact Sheet for Employers (PDF)
