Employer Questions

Q.  Who must withhold income?

A.  Any employer or other person, referred to as a ‘source of income”, who is served with notice of income withholding and owes or will owe income to the payer( the person who owes support). Income is includes, the but not limited to, the following:

• salaries, earnings, wages, commissions, bonuses, vacation payments;
• payments due or to be due in the future from a profit-sharing plan, pension plan, insurance contract, or annuity; and
• any amount of money due to the payer as a debt of any other person, including debts of all kinds of businesses.

Q.  When must income be withheld?

A.  An order of income withholding is binding on an employer seven days after the employer is served with notice of the income withholding.  The notice may be served by ordinary mail, and will give the date of mailing, the date to begin withholding, and where to send the money withheld.

Q.   How often do I have to send in amounts I withhold?

A.  Amounts withheld must be paid to the Michigan State Disbursement Unit (MiSDU) within three days after the date withheld.

Q.  How do I know if the amount to be deducted changes?

A.  The Friend of the Court will advise you if the order is changed.  Modifications to a withholding order amount, should not be done, until you receive notification from the Friend of the Court. This also includes terminations of withholding orders.

Q.  What if the employee’s income is subject to garnishment or other withholding orders?

A.  An order of income withholding for child support has priority over all other legal process 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). However, you may be prevented from withholding the income under federal bankruptcy law and may wish to consult with your attorney if given notice of a bankruptcy stay.

Q.  What happens if I don’t withhold the money?

A.  An employer is required to implement income withholding within 7 days of that order.  An employer is liable for any amount that is knowingly and intentionally fails to withhold form the employee’s income except as the payment amount is limited by the Consumer Credit Protection Act.

This means the court will require you to pay the amount you should have withheld, even if you have paid it to the employee.  The court may also find an employer in contempt of court for failure to obey the order.

Q.  Isn’t there some limit to the amount I can take out?

A.  The maximum amount taken out must comply with Section 303(b) of the Consumer Credit Protection Act (15 USC 1673(b)). Although deductions for garnishments normally are limited to 25% of a person’s disposable income, amounts withheld for child support normally should not exceed 50% of the employee’s disposable income for a work week.

Q.  What do I do if the withholding amount exceeds 50% of the employee’s disposable income?

A.  You should only remit 50% of the employee’s disposable income.

Q.  What do I have to to include with the payment to identify it as a support payment?

A.  The following information must be provided for each withholding order payment:

• Employer FEIN (Format: 99-9999999)
• Employee Name
• Employee SSN (Format: 999-99-9999)
• Michigan Case Number (Format: 9999-999999-AA, where the first four digits represent the year the order was issued, the next six digits represent the unique order number, and the last two characters represent the type of order)
• Unique County Identifier – County Code (Format: 99) – for the county that issued the income withholding order.
• Amount Withheld
• Date of Withholding
• Any additional identification number you may be using now

For a coupon to use in remitting your payments, go to “FOC Misc Forms” and download “Employer Coupon”

Q.  What happens if I receive more than one withholding order for the same person?

A.  For each active case your employee has, you should have only one withholding order , per case. When more than one withholding order is received, for different cases, you should add both withholding amounts together and remit to MiSDU.  If  the total amount to be withheld exceeds the limits imposed by Section 303(b) of the Consumer Credit Protection Act, you should remit only 50% of the employee’s disposable income.

Q.  Where do I send support payments?

A.  Payment should be made to our MiSDU( Michigan State Disbursement Unit). The address is MiSDU, P.O. Box 30350 Lansing, MI 48909-7850.

Q.  Must I write a separate check for each employee?

A.  When you are subject to more than one income withholding order with the same friend of the court office, you may combine in a single payment all amounts withheld.  The payment must identify the portion of the payment that is attributable to each employee , and include the employee’s name, social security number, and case number.

Q.  Is there a contact number for employers to call MiSDU?

A.  Yes.  The MiSDU Employer Help Line is 1-800-817-0805.

Q.  Can I charge the employee for the cost associated with withholding?

A.  Currently, Michigan law does not allow deduction of a  fee for processing Michigan income withholding orders.  For an order from another state, an employer may deduct a fee if allowed by the law of the state of the employee’s principal place of employment.

Q.  What if the employee says they do not owe the money and demands I pay them? What protects me if I am sued for these wages?

A.  Your payment to the State Disbursement Unit is accordance with an order of income withholding discharges your liability to the employee as to that portion of the employee’s income.

Q.  What if the employee says that I’m taking the wrong amount from their check?

A.  You are obligated to continue to remit the amount on your copy of the withholding order.  If your employee feels that there is a mistake, then they should contact the FOC and have the issue resolved.  The FOC cannot provide employers with any account information.  Failure to follow the withholding order, may result in contempt action being taken against your company.

Q.  What is EFT/ EDI?

A.  EFT is Electronic Transfer of Funds and EDI is Electronic Data Interchange. EFT/EDI is a method of sending the funds and data for a child support payment to the MiSDU electronically, instead of by paper.

You should have already received a brochure about EFT/EDI. It has more details about how to initiate an EFT/EDI payment.
If you want to initiate EFT/EDI, or you have a question about EFT/EDI, contact the MiSDU Employer Assistance Line at (800) 817-0805

Unique County Identifiers

For each case that you are withholding child support, please provide the two-digit county code if submitting paper or the FIPS code if submitting electronically for the county that issued the income withholding order.

County Name	County Code	FIPS		County Name	County Code	FIPS
ALCONA	01	26001		LAKE	43	26085
ALGER	02	26003		LAPEER	44	26087
ALLEGAN	03	26005		LEELANAU	45	26089
ALPENA	04	26007		LENAWEE	46	26091
ANTRIM	05	26009		LIVINGSTON	47	26093
ARENAC	06	26011		LUCE	48	26095
BARAGA	07	26013		MACKINAC	49	26097
BARRY	08	26015		MACOMB	50	26099
BAY	09	26017		MANISTEE	51	26101
BENZIE	10	26019		MARQUETTE	52	26103
BERRIEN	11	26021		MASON	53	26105
BRANCH	12	26023		MECOSTA	54	26107
CALHOUN	13	26025		MENOMINEE	55	26109
CASS	14	26027		MIDLAND	56	26111
CHARLEVOIX	15	26029		MISSAUKEE	57	26113
CHEBOYGAN	16	26031		MONROE	58	26115
CHIPPEWA	17	26033		MONTCALM	59	26117
CLARE	18	26035		MONTMORENCY	60	26119
CLINTON	19	26037		MUSKEGON	61	26121
CRAWFORD	20	26039		NEWAYGO	62	26123
DELTA	21	26041		OAKLAND	63	26125
DICKINSON	22	26043		OCEANA	64	26127
EATON	23	26045		OGEMAW	65	26129
EMMET	24	26047		ONTONAGON	66	26131
GENESEE	25	26049		OSCEOLA	67	26133
GLADWIN	26	26051		OSCODA	68	26135
GOGEBIC	27	26053		OTSEGO	69	26137
GRAND TRAVERSE	28	26055		OTTAWA	70	26139
GRATIOT	29	26057		PRESQUE ISLE	71	26141
HILLSDALE	30	26059		ROSCOMMON	72	26143
HOUGHTON	31	26061		SAGINAW	73	26145
HURON	32	26063		SANILAC	76	26151
INGHAM	33	26065		SCHOOLCRAFT	77	26153
IONIA	34	26067		SHIAWASSEE	78	26155
IOSCO	35	26069		ST. CLAIR	74	26147
IRON	36	26071		ST. JOSEPH	75	26149
ISABELLA	37	26073		TUSCOLA	79	26157
JACKSON	38	26075		VAN BUREN	80	26159
KALAMAZOO	39	26077		WASHTENAW	81	26161
KALKASKA	40	26079		WAYNE	82	26163
KENT	41	26081		WEXFORD	83	26165
KEWEENAW	42	26083

Q.  I received a notice( National Medical Support Notice- NMSN) stating that I’m to enroll the minor child in medical coverage.. What does this mean?

A.  Nearly all orders for child support contain provision that parents obtain and maintain health care insurance for the minor children.  Parents are required by law to provide health insurance  coverage if it is available as a benefit of their employment or at a responsible cost.  As an employer, you are obligated to enroll the minor child(ren) in medical coverage that is available to your employee at reasonable cost.

Q.  What is reasonable cost for medical coverage?

A. Cost for medical coverage, when added to the withholding order amount, should not exceed 50% of the disposable income of the employee.  When amount exceeds 50% of disposable income, please complete the bottom section of the NMSN, entitled ” Withholding Limitation Exceed” and return to the court.

Q.  What if the employee is not eligible for medical coverage?

A.  If the employee is not eligible because he/she has not passed probationary period as a new hire, complete the bottom of the NMSN with a check in the appropriate box and in the space provide, give the date that the employee will be eligible and return to the court.

If the employee is not eligible because he/she does not have any medical coverage for themselves, complete the bottom of the NMSN with a check in the appropriate box and  return to the court.

If the employee is not eligible because medical coverage can not be obtain at reasonable cost, complete the bottom section of the NMSN, entitled ” Withholding Limitation Exceed” and return to the court.

Q.  What happens if I don’t enroll the minor child?

A.  Your company may be found in contempt of court.

Q. What if my employee has not enrolled in any medical coverage for themselves?

A.  Complete the bottom of the NMSN , check the appropriate box and return to the court.

Q.  Coverage for the minor child will cost the employee additional money…Do I still enroll?

A.  You must enroll the minor child if medical coverage is offered to the employee at a reasonable cost.  Cost for medical coverage, when added to the withholding order amount, should not exceed 50% of the disposable income of the employee.  If the employee is not eligible because medical coverage can not be obtain at reasonable cost, complete the bottom section of the NMSN, entitled ” Withholding Limitation Exceed” and return to the court.

Q.  The additional money for the minor child’s coverage, exceeds the 50% withholding allowance that I can deduct.. What do I do?

A.  Cost for medical coverage, when added to the withholding order amount, should not exceed 50% of the disposable income of the employee.  If the employee is not eligible because medical coverage can not be obtain at reasonable cost, complete the bottom section of the NMSN, entitled ” Withholding Limitation Exceed” and return to the court.

Q.  My employee says that the other parent has the child on their insurance… Do I still enroll the minor child?

A.  Yes.  There is an court order requiring your employee to provide medical coverage for the minor child.  If the other parent carries medical coverage for the child, your employee will need to file a motion to have the provision for medical coverage in their order, modified.  They must file a motion to remove their responsibility for having medical coverage from the order.

Q.  Once the child is enrolled, what do I have to next?

A.  Once the child has been enrolled, you must provide the custodial parent with medical cards, plan information and health care provider.  You must send these items directly to the custodial parent at the address on the NMSN.

Q.  I received the NMSN , but the child is already enrolled in medical coverage with the employee.. What do I do?

A.  If you have provided the custodial parent with all necessary information regarding medical coverage, you may complete the NMSN with the health care provider and address, telephone and plan number.  Once completed, return to the court.

Q.  The child is enrolled in medical coverage already under a HMO, but the court has contacted me to enroll the minor child in a national medical coverage( i.e. Blue Cross)…Why?

A.  If a custodial parent is not living in the state of Michigan, HMOs are not accepted out of state.  If the employer offers national providers, such as Blue Cross and it’s at a reasonable cost, the employer is obligated to switch providers.

Q.  What if the additional money for national coverage is greater that the 50% withholding allowance?

A.  National coverage still needs to be at reasonable cost.  If not complete the bottom of the NMSN and return to the court.

Q.  If I have questions regarding medical issues.. Whom do I contact?

A.  You may contact the FOC, Medical Enforcement Unit at 313-224-4110, by fax at 313-237-9290.