Withholding is required by law for every parent who has a child support obligation. Therefore, employers should know when an income withholding order is issued against an employee, it does not necessarily mean the employee is delinquent in child support payments.
Income withholding laws also apply to financial institutions, such as banks and credit unions. The Division of Child Support has the authority to issue a withholding order to employers and officers of financial institutions, requiring them to withhold money from the accounts of those noncustodial parents who are not meeting their child support obligation. Additionally, income withholding laws apply to other forms or sources of payments to noncustodial parents.
The $3 fee which may be assessed by the employer is not used in determining the 50 percent limitation of withholding. The law also requires you to withhold child support without regard to any prior claims to creditors. This means the income withholding order for child support has priority over any other creditor claims or voluntary deductions made by the employee. (SDCL 25-7A-32; SDCL 25-7A-37)