ADP Advisor®
Fall 2011 | Volume 21 No. 4
ASK THE ADP ADVISOR
Can we charge a fee for processing child support payments?
Q:
I have several employees for whom I deduct court-ordered child support payments from
each paycheck. This involves some administrative work on my part. Am I allowed to charge a
modest processing fee?
A:
Most states allow you to charge an administrative fee for withholding and remitting
wages. But the specifics vary considerably. Some states let you deduct the fee from the support
payment. Others require you to charge the employee an additional fee on top of the payment.
A number of states limit the fees you can charge, depending on the employee’s wages. See the
chart below, then check with the appropriate agency in your state for complete details.
| State |
Maximum fee you may charge* |
State |
Maximum fee you may charge* |
| AL |
$2/month |
MT |
$5/month |
| AK |
$5 per payment |
NE |
$2.50/month |
| AZ |
$1/payment or $4/month |
NV |
$3/payment |
| AR |
$2.50/payment |
NH |
$1/payment |
| CA |
$1.50/payment |
NJ |
$1/payment |
| CO |
$5/month |
NM |
$1/payment |
| CT |
No provision |
NY |
No provision |
| DE |
No provision |
NC |
$2/payment |
| DC |
$2/payment |
ND |
$3/month |
| FL |
$2/payment ($5 for 1st payment) |
OH |
Greater of $2 or 1% of withheld amount |
| GA |
$3/payment ($25 for 1st payment) |
OK |
$5/payment, not to exceed $10/month |
| HI |
$2/payment |
OR |
$5/month |
| ID |
$5/payment |
PA |
2% of withheld amount |
| IL |
$5/month |
PR |
Up to $1 per payment |
| IN |
$2/payment |
RI |
$2/payment |
| IA |
$2/payment |
SC |
$3/payment |
| KS |
Lesser of $5/payment or $10/month |
SD |
$3/month |
| KY |
$1/payment |
TN |
Up to 5%/payment, not to exceed $5/month |
| LA |
$5/payment |
TX |
$10/month |
| ME |
$2/payment |
UT |
$25 one-time fee (from 1st payment or monthly increments) |
| MD |
$2/payment |
VT |
$5/month |
| MA |
$1/payment |
VA |
$5 set up fee or $5 per remittance |
| MI |
No provision |
WA |
$1/payment ($10 for 1st payment) |
| MN |
$1/payment |
WV |
$1/payment |
| MS |
$2 per interstate remittance/$5max |
WI |
$3/payment |
| MO |
$6/month |
WY |
$5/payment |
* These are general guidelines only. Check with the appropriate agency in your state regarding the specific circumstances under which you may charge an administration fee.
ADP’s Wage Garnishment Service helps you meet your electronic filing requirements and integrates fully with ADP payroll. Check item #4 on your Reader Service Form.
To submit questions for possible inclusion in future
columns, visit http://www.adp.com/advisor_new/ask.asp.