A lump sum is a one-time payment to an employee. Examples are bonuses, commissions, severance, and vacation payouts.

Employers may find more information about each state’s requirements on the State Lump Sum Requirements matrix. State contact information is also available on the matrix.

No, an employer must follow the withholding limits in the federal Consumer Credit Protection Act, unless the state has lower withholding limits. See instructions and withholding calculations to process an income withholding order.

Yes, employers can report upcoming lump sum payment to employees using the online bonus/lump sum application on the Child Support Portal. OCSE compares the employees who are receiving lump sum payments to individuals who owe child support and sends matches to most state child support agencies.

No, child support agencies do not always send an IWO to garnish a lump sum. Some states use another document to garnish a lump sum.