The Federal CCPA limit is 50% of the disposable earnings if the employee supports a second family and 60% if the employee does not support a second family. These limits increase to 55% and 65% respectively if the employee owes arrearages that are 12 weeks or more past due.
States may choose a lower limit. The amount withheld should be determined based on the employee’s principal state of employment. If the employee works in Maryland, use the limits set forth in the CCPA. (About two-thirds of the states use the federal limits, and about one-third cap the withholding at 50% regardless of second families or arrearage amount.)
They are all being sent to the same State Disbursement Unit (SDU), and the employer itemizes the amount withheld from each employee, the date each amount was withheld, and a required identifier such as the case number.
- if it is payable to the SDU,
- if required, a copy of the underlying order containing an income withholding clause is included,
- the amount to withhold is a dollar amount,
- the form has not been altered nor has invalid information been entered, and
- it contains all of the necessary information to process the IWO.
Effective May 31, 2012, the IWO must be on the federal form, OMB 0970-0154, to be “regular on its face”.