Friend of the Court Act: Michigan compiled Law 552.501-552.535; also found in Michigan Statutes annotated 25.176(1)-25.176(35)

Support and Visitation Enforcement Act: Michigan Compiled Law 552.601-552.650; also found in Michigan Statutes Annotated 25.164(1)-25.164(50)

Consumer Credit Protection Act: Title III, Section 303(b) of Public Law 90-321, 15 USC, 1673(b)

Any employer or other person, referred to as a "source of income", who owes or will owe income to the payer (the person owing money under a support order). Income is broadly defined to include (among other things):

• Salaries, earnings, wages and commissions; payments due or to be due in the future from a profit-sharing plan, pension plan, insurance contract, or annuity.
• Any amount of money due to the payer as a debt of any other person, including debts of all kinds of businesses.

An order of income withholding is binding on an employer seven days after the employer is served by ordinary mail with a true copy of the order of income withholding. Included with the order will be a notice of income withholding, which will give the date of the mailing, the date to begin withholding, and where to send the money withheld.

The order remains in effect until further order of the court or until the employer is notified otherwise in writing by the Friend of the Court.

An order of income withholding for child support has priority over all other legal process under state law against the same income. This means it takes precedence over garnishments and other payroll deductions (except taxes, social security deductions and other income withholding orders for support).

An employer's failure to comply with an order of income withholding within seven days of service may result in contempt finding by the court against the employer.

The Friend of the Court is required to advise the employer if the order is changed. If the Friend of the Court serves the employer with a notice of modification of the order of income withholding, the amount withheld must be changed to conform to the court ordered modification within seven days after receipt of the notice of modification.

The maximum amount taken out must comply with Section 303(b) of Title III of the Consumer Credit Protection Act (15 USC 1673(b)). The amounts withheld for child support cannot exceed 50% of the disposable net income when there is more than one support obligation and up to 65% of the disposable net income if there is only one support obligation. Please refer to the provision outlined in the income withholding order.

An employer must identify each withholding payment by the employee's name and social security number, case number, amount withheld, and the date on which support was withheld from the employee's income. The employer must also provide its federal employer identification number to the Office of Friend of the Court.

The maximum amount taken out must comply with Section 303(b) of Title III of the Consumer Credit Protection Act (15 USC 1673(b)). The amounts withheld for child support cannot exceed 50% of the disposable net income when there is more than one support obligation and up to 65% of the disposable net income if there is only one support obligation. Please refer to the provision outlined in the income withholding order.

The MISDU will determine the appropriate distribution of the child support payment when a payer has more than one child support obligation in the system.

The employer may submit one check to the MISDU with an attached list with the payer's names, social security number and case numbers.

Amounts withheld pursuant to an order of income withholding must be paid to the MISDU within three days after the date of withholding.

Your payment to the MISDU in accordance with an order of income withholding discharges your liability to the employee as to that portion of the employee's income.

An employer is liable for any amount that it knowingly and intentionally not withheld from the employee's income following service on the employer of an order of income withholding, except as the payment amount is limited by the Consumer Credit Protection Act.

This means the court will require you to pay the amount you should have withheld, even if you have paid it to the employee.

The Federal Tax Refund Offset (FTRO) and State Tax Refund Offset (STRO) programs are two automated enforcement remedies within MiCSES. These programs are used to submit tax refund intercept requests for a non-custodial parent (NCP) with past due support. When a non-custodial parent (NCP) files a state or federal income tax return with a tax refund due, the tax refund is intercepted up to the amount of overdue support and sent to the state's child support agency rather than the NCP. Federal submission requires arrearages greater than $150.00 for TANF cases and $500.00 for non-TANF cases and State submission require arrearages greater than $150.00 for both TANF and non-TANF cases, regardless of weather the child is emancipated, over the age of 18, or disabled before the age of 18.

The FTRO is a continuous process-submittal and update processes run weekly throughout the year. The STRO program is an annual submittal with a weekly update process throughout the year.

Items taken into consideration for case selection & arrearage determination include the NCP's member role, status, and SSN, case type status, case interstate status, bankruptcy status, dependant status, IV-D obligation debt type and arrearage amounts, arrearage minimum thresholds.

After you have been served with an order of income withholding, you must notify the Friend of the Court if the employee's income from your company is terminated or interrupted for a period of 14 or more consecutive days. In such cases, you must provide the employee's last known address and the name and address of the employee's new employer (if known).

Yes, upon the Friend of the Court's request, you are required to provide:

• full name and address of parent
• social security number
• date of birth
• amount of wages earned by or other income due to the parent
• employment status
• information concerning dependent health care coverage if it is available as a benefit of employment

The federal and state child support agencies send the payer a pre-offset notice (PON). This notice explains that the Friend of the Court requested a tax refund offset and provides the payer with information regarding appeal and/or joint tax return options.

An employer who refuses to employ, discharges, disciplines or penalizes an employee because of an order of income withholding entered against that employee is guilty of a misdemeanor. The misdemeanor is punishable by a fine of up to $500 and the employer will be required to make full restitution to the aggrieved employee including reinstatement and payment of back pay.

When an STRO collection is received, a receipt is created and identified by the payer’s member ID and SSN. Monies are allocated and distributed following the regular distribution hierarchy. It is then disbursed to the recipient. Money that exceeds the reported arrearage balance will be held for 60 days before it is refunded to the payer. When an FTRO collection is received, a receipt is created and identified by the payer’s member ID and SSN. Monies are allocated and distributed based on the Federal tax refund offset distribution hierarchy. Monies from a ‘single/individual’ tax return are then disbursed to the recipient. Money that exceeds the reported arrears balance will be held for 60 days before it is refunded to the payer.

Important note: Payers who have filed a joint tax return are also allocated and distributed based on the FTRO hierarchy reducing the arrearage balance; however, the actual disbursement is held for 6 months from the receipt date.

Client STRO information (517) 636-5333

Client FTRO information toll free 1-866-540-0008 (Central Functions Unit of MiCSES)