Reporting Bonus/Lump Sum Payments & Terminations
Bonus and lump sum payments are considered employee income and can be garnished to collect child support. Examples include (but are not limited to):
- Severance
- Leave payouts
- Insurance settlements
- Retirement incentives
- Commissions
- Stock options
- Lottery winnings
- Awards
- Payments resulting from verdicts
Report these types of payments directly to the agency that issued the child support order.
The CSSD 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:
Termination Reporting
When an employee is terminated from employment or no longer works for your company, please report the following information to the agency that issued the income withholding order.
What information should you report?
- Name of individual
- Case number or Participant ID
- Date of Termination
- Last known address & phone number
- New employer information (if known)
- New address & phone number (if known)
You may report in one of three ways:
Each income withholding order contains the caseworker’s direct contact information. You may report terminations by contacting the employee’s caseworker directly.
For more information check out the Employer FAQ page or contact the CSSD.