Employers' Responsibilities And Duties When Served With A Notice For Withholding For Child Or Spousal Support For Their Employees

When employers are served with a notice for withholding income on behalf of their employees, the notice requires them to withhold a specified amount of money for child or spousal support from an employee's income and send it to Illinois State Disbursement Unit. The following is what employers must do in this situation.

An employer who has been served with an income withholding notice must deduct and pay the amount designated in the notice from the employee's income to the State Disbursement Unit within 7 business days after the date the amount would have been paid to the employee. For each deduction, the employer must show the State Disbursement Unit at the time of transmittal the date the amount would have been paid to the employee. Employers who have fewer than 250 employees and who withhold income for 10 or more employees must use electronic funds transfer to pay all income to be withheld.

If the employer knowingly fails to pay any amount withheld to the State Disbursement Unit within those 7 business days, then the employer is required to pay a penalty of $100.00 for each day the support is not paid. If the employer on more than one occasion fails to pay support within 7 business days, then the parent collecting support or the public office may bring a lawsuit against the employer for this penalty.

If an income withholding notice requires a parent to provide health insurance coverage for a child, and if coverage is available through the employer, then the employer must immediately enroll the child as a beneficiary in the health insurance plan as long as the child is otherwise eligible for the coverage without regard to enrollment restrictions that may apply as to the time period within which the child may be added to the coverage. The employer must withhold any required premiums from the employee's pay.

The employer must mail the notice of the date of coverage, dependent coverage plan information, and all forms necessary to acquire reimbursement for covered health expenses within 15 days of enrollment or upon request to the parent receiving the support.

The employer may not remove any child from the parent's health care coverage unless the parent-employee is no longer covered under the employer's group health plan or unless the employer receives written notice that either the order for support is no longer in effect or the child will be included in a comparable health care plan presently in effect or will take effect no later than the date the prior coverage is terminated. The employer must then notify the parent receiving support within 10 days of the termination or change date in addition to notice of conversion privileges.

When the employee is no longer receiving income from the employer, the employer must return a copy of the income withholding notice to the parent receiving support or public office.

As long as employers comply with income withholding notices, they will not be subjected to civil liability. Employers must not refuse to hire, penalize or discharge employees because of the duty to withhold income.

Written by: Lindsay B. Coleman, attorney-at-law
The Law Office of Gary L. Schlesinger
1512 Artaius Parkway, Suite 300
Libertyville, Illinois 60048
(847) 680 - 4970