§ 22-4-13.3-4 — Employer's duties related to income withholding; fee for withholding income

Indiana § 22-4-13.3-4

• Jurisdiction: Indiana
• Art. 4: UNEMPLOYMENT COMPENSATION SYSTEM
• Ch. 13.3: Administrative Withholding for Benefit

Text

(a) An employer that receives a notice to
withhold income under section 3 of this chapter shall do the following:
(1) Verify the individual's employment to the department.
(2) Withhold from the income due to the individual each pay
period an amount:
(A) determined in accordance with; and
(B) subject to the limitations of and priority established by;
IC 24-4.5-5-105 in the same manner as a garnishment. An income
withholding under this chapter is not an assignment of wages
under IC 22-2-6.
(3) Begin withholding the amount determined under subdivision
(2) from the individual's income beginning with the first pay
period that occurs not later than fourteen (14) days after the date
the employer receives the notice sent under section 3 of this
chapter.
(4) Remit the amount withheld under subdivision (2) to the
department by check or electronic payment (as defined by IC 5-27-2-3) not later than seven (7) days after the date of each
regularly scheduled pay day.
(5) Continue withholding under this section until:
(A) the department notifies the employer to discontinue the
withholding; or
(B) the full amount required to be paid to the department has
been paid, as indicated by a written statement to the employer
from the department.
(6) Notify the department, if the individual subject to withholding
terminates employment, including the individual's last known
address and the name of any new employer, if known.
(b) An employer that is required to withhold income under
subsection (a)(2) may collect a fee equal to twelve dollars ($12). If the
employer chooses to impose a fee, the fee shall be allocated as follows:
(1) Fifty percent (50%) of the fee shall be paid by the individual
subject to withholding, and that amount is deductible by the
employer from the individual's disposable earnings (as defined in
IC 24-4.5-5-105(1)(a)).
(2) Fifty percent (50%) of the fee shall be paid by the department.
The fee may be collected only once by an employer for each notice
provided by the department under section 3 of this chapter. The
employer may collect the entire fee from one (1) or more of the initial
withholdings from the individual's disposable earnings, or alternatively,
the employer may collect the fee ratably over the number of pay
periods for which the withholdings from the individual's disposable
earnings are required. If an employer chooses to collect a fee under this
subsection, the employer shall notify the department in the manner and
form prescribed by the department, and the amount to be withheld must
be reduced, if necessary, to avoid exceeding the maximum amount
permitted to be deducted under IC 24-4.5-5-105(3). A fee collected
under this subsection is not an assignment of wages under IC 22-2-6.

Legislative History

As added by P.L.183-2015, SEC.5. Amended by P.L.66-2018, SEC.2.