Calculation of maximum C/S payroll withholding (low income)

What is the name of your state (only U.S. law)? NJ

I am currently receiving weekly C/S payments prorated to 50% due to the obligor's low income. Obligor works 40/hrs per week at a steady but low paying job. He has 3 active support orders (my order, plus 2 others also prorated) which exceed what can be deducted from his check by NJ law, as the total weekly obligation would put him below poverty level. He is currently accumulating weekly arrears for all 3 of the orders.

Would anyone happen to know whether the obligor's maximum payroll withholding for C/S is based on weekly gross income alone, or is tax withholding status and/or net income the deciding factor? The obligor has received a very large tax refund (many thousands) consistently over the past 12 years that I've known him and the arrears are normally paid via the tax refund. I'm wondering if he changed his tax withholding status so that less tax is being withheld (larger net income), would his weekly C/S payroll deduction increase, thereby less C/S being prorated and going into arrears? If this is correct, can a family court judge order the obligor to change his withholding status? I'm positive that the obligor will not change his tax withholding voluntarily.

Tax withholding (generally) has no bearing.

meanyjack said:

Tax withholding (generally) has no bearing.

Click to expand...

I'm not sure it's that simple:
Employer Services - Basic Guidelines for Federal Agencies on Child Support Withholding

The withholding is based on disposable income - which is gross income after paying mandatory deductions. Income tax is a mandatory deduction. I have not researched it to see if the employee can arbitrarily choose a higher withholding amount (i.e., by claiming a smaller number of dependents) which would reduce his disposable income. You'd need to research that, but your statement is true ONLY IF CCPA controls how much tax you can have withheld.

However, it seems that it would be counterproductive to do what is being suggested. There are limits to how much money can be deducted from a paycheck for child support (typically 50-60%, but see the above article). The obligor gets to keep 40-50% of disposable income. But if more money is set aside and comes back at the end of the year as a tax refund, I believe that 100% can be seized (correct me if I'm wrong). There is no incentive for obligor to do that.

Misto --

That's why I said "generally" because I know many states base it off of gross income, then give credit for some taxes (i.e. local, but not fed or state), some mandatory deductions (union fees, etc.), but not how many exemptions are claimed. Because we all know there are some that will mess w/that number to benefit them, if applicable.

But, I agree with you on the withholding being based on disposable/net (although, to be clear for the OP, does not relieve the other parent of their legal obligation to pay the remaining). And yes, an entire refund can be seized (unless an injured spouse form -- or whatever it's called -- is filed).