Child Support Enforcement (CSE)

Employers: Lump Sum Reporting

Requirements

Employers must notify the North Dakota Child Support Enforcement program before making any lump sum payment of $1,000 or more to an employee if the employer has received from the North Dakota Child Support Enforcement program an income withholding order that includes an amount for past-due support.

"Lump sum payment" includes pay in lieu of vacation or other leave, bonus, commission, and any other payment to an employee but does not include periodic payments made on regular paydays as compensation for services and does not include reimbursement for expenses incurred by the employee on behalf of the employer. Also not included are severance pay and advances.

Employers must report lump sum payments to the North Dakota Child Support Enforcement program office that issued the income withholding order. The report must include:

• Employer's name;
• Employer contact name and phone number;
• Employee's name;
• Employee's case identifier (found on the income withholding order); and
• The amount of the lump sum payment.

Note that all requirements regarding lump sum payment reporting do not apply to any portion of such payment that must be paid to satisfy the income withholding order.

An employer that reports a lump sum payment to the North Dakota Child Support Enforcement program must retain at least one-half of the payment (1) for 30 days from the date of the employer's report of the lump sum payment or (2) until the employer receives written authorization from the North Dakota Child Support Enforcement program to make the payment to the employee, whichever occurs first. However, the employer must retain the entire lump sum payment if, prior to paying out any portion of the lump sum payment, the North Dakota Child Support Enforcement program notifies the employer that an execution, garnishment, attachment or other process has been initiated regarding the lump sum payment to satisfy a child support obligation of the employee.

The employer may pay out the entire lump sum payment to the employee if the North Dakota Child Support Enforcement program does not contact the employer within 30 days from the employer's report of the lump sum payment that an execution, garnishment, attachment or other process has been initiated.

 

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