Bonus / Lump Sum Payments
Bonus and lump sum payments are considered employee income and can be garnished to collect child support. Lump sum payments include (but are not limited to):
- Leave payouts
- Insurance settlements
- Retirement incentives
- Stock options
- Lottery winnings
- Payments resulting from verdicts
Report these types of payments directly to the agency that issued the child support order to your company. See the All State Bonus/Lump Sum Contact Matrix tab below for more information on out of state orders.
The Montana CSED may take up to 50% of the bonus or lump sum payment depending on the amount of arrears the employee has. Other states may request a larger percentage of the payment.
You may report in one of three ways: