NOTE: Employers should hold the IWO if there is any chance the employee will return - it is still effective and binding on the employer.
NOTE: Earnings are broadly defined whether in the context of calculating support, withholding, or reporting by employers. (Family Code section 5206)
Withhold the combined amount specified in the IWO -- current plus any payment on past support or other payment ordered in the IWO -- each month.
NOTE: The Alternate methods described for Weekly and Every two week pay periods will result in payments contrary to the court's order. Ten monthly payments will be less than the court ordered support and 2 monthly payments (the calendar months with 3 pay periods) will be more than the court order. In effect, an arrearage is created in months with 2 pay periods and that arrearage is caught up each six months when a month with 3 pay periods arrives. On a $500 per month order, after 5 months of lower withholding, the employer will have withheld (and the employee will have paid) almost $100 less than was ordered. At the end of the year, the correct yearly amount will have been paid but a small amount of interest will have accrued on the "late" payments.
Employee's net is $1,200
Maximum that can be withheld = $ 600 (50% of $1,200)
Order #1 = $700 per month
Order #2 = $350 per month
Total = $ 1,050 for the two orders together.
But, the most that can be withheld is only $ 600.
To pro-rate the payment:
First compute what percentage each order is of the total order amount.
Second multiply the total that can be withheld ($ 600) by the percentage calculated for each order.
Employee's net is $1,200
Maximum that can be withheld is $ 600 (50% of $1,200)
Order A = $ 400 current + $ 120 on past due support
Order B = $ 100 current + $ 40 on past due support
Sub-total 1 = $ 500 current
Sub-total 2 = $160 past due
Total = $ 650 current + past due
But, the most that can be withheld is $ 600.
Because the total current amount is less than the total that can be withheld, all of the current on each case can be paid ($400 on one case and $100 on the other for a total of $ 500).
But, the most that can be withheld is only $600 ... and after paying the $500 current total, there is only $100 left to pay against the past due total of $160 - so, the past due payments on the two order must be pro-rated.
As in example #1 above, to pro-rate the past due payment:
First compute what percentage each past due order is of the total past due order amount ( $120 divided by $160 = 3/4 or 75% and $40 divided by $160 = 1/4 or 25%).
Second multiply the total that is left over after current has been paid ($ 100) by the percentage calculated for each order: first order, 75% x $100 = $75 and, second order, 25% x $100 = $25.Conclusion: