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Virginia clarifies maximum employer fee for child support orders

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Author: ADP Admin/Wednesday, May 4, 2022/Categories: Compliance Corner

Virginia has enacted legislation (HB 808) that clarifies that fee of up to a maximum of $5.00 may be charged and withheld by the employer from the employee’s wages (in addition to the amount required to be held for child support) pursuant to an income withholding order.  The purpose of the legislation was to clarify that an employer may charge a fee of less than $5.00.

HB 808 becomes effective July 1, 2022.

The Details:

VA § 20-79.3 currently stipulates as follows:

“That a fee of $5 for each reply or remittance on account of the obligor may be charged by the employer and withheld from the obligor's income in addition to the support amount to be withheld; however, child support withholding amounts collected from unemployment insurance benefits shall not be subject to this fee;…”

HB 808  clarifies that a fee of up to a maximum of $5.00 for each reply or remittance on account of a support obligor may be charged by an employer and withheld from the obligor's income in addition to the support amount to be withheld pursuant to an income withholding order.

Effective July 1, 2022, VA § 20-79.3 will be revised as follows:

“That a fee of up to a maximum of $5 for each reply or remittance on account of the obligor may be charged by the employer and withheld from the obligor's income in addition to the support amount to be withheld; however, child support withholding amounts collected from unemployment insurance benefits shall not be subject to this fee;..”

Next Steps:

The language of the Virginia statute has always stated that an employer may charge the fee in relation to employee child support orders but is not required to do so.  Although the change in the language becomes effective on July 1, 2022, the intent of the legislation was a clarification that the employer has always been that an employer may withhold an amount of anywhere from $0.00 to $5.00.  The summary of the purpose of HB 808 is as follows:

“Clarifies that a fee of up to a maximum of $5 for each reply or remittance on account of a support obligor may be charged by an employer and withheld from the obligor's income in addition to the support amount to be withheld pursuant to an income withholding order. Currently, such amount is described only as a $5 fee.”

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