Income Withholding Orders
In November 2015, the CSED changed processes in order to provide more effective and efficient options to our employers by offering more electronic services. In order to do so, our platform for income withholding orders changed to one order per case/custodial parent.
Please note: If you have an employee with more than one child support case with different custodial parents, you will receive a child support withholding order for each case. Orders that were in place prior to our system conversion are still valid orders. If you have questions on the validity of an order, please contact the Investigator on that order.
Montana Income Withholding Changes
Sign up for Electronic Income Withholding (e-IWO)
Cost-effective, time-efficient, and easy! Communicate with child support agencies electronically. Receive and acknowledge orders, report bonus/lump sum payments and report terminations all electronically.
*Orders to Enroll for Health Coverage (National Medical Support Notice) will still be sent via regular mail.
To learn more or to enroll, click on the box below.
What you need to know about income withholding for child support
- Child support payments are to be deducted from the employee’s income after taxes and mandatory deductions and prior to any assignments of income, voluntary deductions, and other court-ordered garnishments. MCA §40-5-310
- First deduction no later than the first pay period that occurs after the receipt of the order. MCA §40-5-421
- Submit payments within seven (7) working days from the employee’s pay date. MCA§40-5-421(1)
- Payments must include the employee’s name, case number or participant ID, and their pay date. If multiple employees are on one payment, a breakdown of the amounts must also be included. MCA §40-5-421
- Only Montana CSED Orders limit withholding to 50% of disposable income after taxes and mandatory deductions. Withholding orders from other child support agencies may take up to 65%. MCA §40-5-416
- Child support takes priority over garnishments from other creditors. MCA §40-5-423
If a federal levy is in place prior to receipt of the child support order, the federal levy takes priority. If a federal levy is received after a child support garnishment is in place, the child support garnishment has priority.
Bankruptcy has priority over child support garnishments however, contact the CSED right away so that we may take appropriate action.
Some orders for restitution take priority over child support and will have the specific Montana statute language on the order. Please contact the CSED if you receive this type of order.
- An administrative fee of $5.00 per month per withholding order may be collected from the employee to help offset the cost of withholding. MCA §40-5-416(1)(c)
- This fee is deducted from the employee’s wages, not the child support payment unless the child support payment is taking 50% of the employee’s disposable income after taxes and mandatory deductions.
- Out-of-state withholding orders fall under the laws of the employee’s principle place of employment. MCA §40-5-1047
- If a payment is sent in error or the information sent with the payment is incorrect, contact the CSED right away.
- Always contact the CSED if you have any questions.