Bonus/Lump Sum Reporting
Bonus and lump sum payments are considered employee income and can be garnished to collect past-due child support. Lump sum payments can include severance, leave payouts, insurance settlements, retirement incentives, commissions, stock options, lottery winnings, awards, and payments resulting from verdicts.
Some states require an employer to report a bonus or lump sum payment before it is paid. Other requirements vary among states, including how long the state has to notify the employer of an amount to withhold before paying the employee. See state lump sum contacts and program information for state-specific requirements.
States may use the Income Withholding for Support form (IWO), a lien/levy, or another state-specific form or process to notify an employer to withhold from a lump-sum payment. Employers must send all income withholding to the State Disbursement Unit.
Related Pages
Featured Resources
Debt Inquiry Service External Partner Profile
August 1, 2011Debt Inquiry Service for Employers
April 4, 2012Debt Inquiry Service - State Participation Status
July 23, 2012
State Lump Sum Contacts and Program Information
October 1, 2012Bonus and Lump Sum Payments
April 4, 2012Lump Sum Bonus Reporting Tool
April 4, 2012
Additional Resources for Bonus/Lump Sum Reporting RSS Feed
State Lump Sum Contacts and Program Information
October 1, 2012Provides information about state requirements and contacts for reporting and withholding lump sums and bonusesDebt Inquiry Service - State Participation Status
July 23, 2012States currently participating in the Debt Inquiry Service (DIS)Lump Sum Bonus Reporting Tool
April 4, 2012Explains the value of the Debt Inquiry Service (DIS) to employers and statesDebt Inquiry Service for Employers
April 4, 2012Allows employers to electronically report upcoming lump sum payments to participating state child support agenciesBonus and Lump Sum Payments
April 4, 2012Explains reporting and withholding child support payments from lump sums or bonuses made to employees
Bonus and Lump Sum Payments
April 4, 2012Explains reporting and withholding child support payments from lump sums or bonuses made to employeesState Lump Sum Contacts and Program Information
October 1, 2012Provides information about state requirements and contacts for reporting and withholding lump sums and bonusesSocial Security Administration
March 1, 2012Provides information on how to find and attach a beneficiary's Social Security disability or retirement benefitLump Sum Bonus Reporting Tool
April 4, 2012Explains the value of the Debt Inquiry Service (DIS) to employers and statesDebt Inquiry Service External Partner Profile
August 1, 2011Employers and insurers must complete the profile to register to participate in the Debt Inquiry Service (DIS)