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What are employer requirements regarding Lump Sum Reporting?

Lump sum payments are considered employee income and are subject to withholding to collect past-due child support. Employers that have received an income withholding order that includes an amount for past-due support:

  • must notify Child Support before making any lump sum payment of $1,000 or more
  • may notify Child Support of lump sum payments less than $1,000 or of an amount yet to be determined.
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What is considered a lump sum?

Lump sum payments include pay in lieu of vacation or other leave and bonuses, commissions, and any other payments to an obligor.

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What is not considered a lump sum payment?

Lump sum payments do not include:

  • periodic payments made on regular paydays as compensation for services
  • reimbursement for expenses incurred by the obligor on behalf of the income payer
  • severance pay
  • advances
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How does an employer report a lump sum payment?

Email Child Support Employer Relations Administrator at csemployer@nd.gov or call 701-328-6524.

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What information must the employer report to Child Support:
  • Employer’s name
  • Employer contact name and phone number
  • Employee’s Name
  • Employee’s remittance identifier (found on the income withholding order)
  • The amount of the lump sum payment
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When can the income payer release the lump sum to the obligor?

An employer who reports a lump sum payment to Child Support may initially release one-half of the payment to the employee. The employer may not release the second one-half of the payment to the employee until whichever occurs first, (1) thirty days have passed since the employer notified Child Support about the lump sum or (2) Child Support gives the employer written authorization to pay the employee the second one-half of the payment. However, the employer must retain the entire lump sum payment upon notification from Child Support of an execution, garnishment, attachment, or other process.

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What happens if an income payer does not report a lump sum?

Failure to comply with these requirements may subject an income payer to contempt of court, attorney’s fees, and late fees.