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An employer who refuses to employ, discharges, and disciplines or penalizes an employee because of an order of income withholding entered against that employee is guilty of a misdemeanor. The misdemeanor is punishable by a fine of up to $500 and the employer will be required to make full restitution to the aggrieved employee including reinstatement and payment of back pay.
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Any employer or other person, referred to as a source of income, which owes or will owe income to the payer (the person owing money under a support order). Income is broadly defined to include (among other things):
source of income,
An order of income withholding is binding on an employer seven days after the employer is served by ordinary mail with a copy of the order of income withholding. Included with the order will be a notice of income withholding, which will give:
The order remains in effect until further order of the court or until the otherwise notified in writing by the Friend of the Court.
An order of income withholding for child support has priority over all other legal processes under state law against the same income. This means it takes precedence over garnishments and other payroll deductions (except taxes, Social Security deductions, and other income withholding orders for support).
An employer's failure to comply with an order of income withholding within seven days of service may result in a contempt finding by the court against the employer.
The Friend of the Court is required to advise employers if the order is changed. If the Friend of the Court serves the employer with a notice of modification of the order of income withholding, the amount withheld must be changed to conform with the court ordered modification within seven days after receipt of the notice of the modification.
The maximum amount taken out must comply with Section 303(b) of Title 3 of the Consumer Credit Protection Act (15 USC 1673(b)).
Although deductions for garnishments are limited to 25% of a person's disposable income, amounts withheld for child support can exceed 50% of the employee's disposable income for a work week in certain cases (such as when there are no other support obligations or there is arrearage in excess of 12 weeks). If withholding of more than 50% of the employee's income is required by the income withholding order, you should contact the Friend of the Court for information, or consult with an attorney.
An employer must identify each withholding payment by:
The employer must also provide its federal employer identification number to the Office of Friend of the Court.
When subject to more than one income withholding order with the same Friend of the Court Office, an employer may combine in a single payment amounts withheld from all employees and separately identify by employee name, Social Security Number, and case number the portion of the payment that is attributable to each individual.
Amounts withheld pursuant to an order of income withholding must be paid to the Michigan State Disbursement Office (MiSDU) within three days after the date of withholding.
Prior law required the employer to withhold an additional $0.50 for each payment made. However, this provision was repealed and is no longer in effect.
Payment to the Michigan State Disbursement Office (MiSDU) in accordance with an order of income withholding discharges liability to the employer as to that portion of the employee's income.
An employer is liable for any amount that it knowingly and intentionally fails to withhold from the employee's income following services on the employer of an order of income withholding, except as the payment amount is limited by the Consumer Credit Protection Act.
This means the court will require the employer to pay the amount that should have withheld, even if the employer paid it to the employee.
After served with an order of income withholding, the employer must notify the Friend of the Court if the employee's income from the company is terminated or interrupted for a period of 14 or more consecutive days. In such cases, the employer must provide the employee's last known address and the name and address of the employee's new employer (if known).
Yes, upon the Friend of the Court's request, the employer is required to provide: