Legal authority for Income Withholding can be found here.
Some employers only accept income withholding order electronically from OSIS. When an e-IWO issues, the employer responds in caselog as to why the e-IWO was rejected. Here are a few short steps to determine the reason it was rejected.
Accepted IWO
If the Disposition Status Code is A (Accepted), meaning the employer is accepting and processing the IWO, the valid values for Disposition Reason Code are:
| Value in Disposition Status Code | Valid Values for Disposition Reason Code | Definition of Reason Code |
|---|---|---|
| A | n/a | The e-IWO was accepted for processing as received. |
| A | B | The SSN matches a person employed by the employer, but the name is different. |
| A | S | The employee (NCP) is currently not employed, e.g., working for a temporary employment agency, but currently not on a job/assignment, on a medical leave or suspended. |
| A | W | The IWO received has the incorrect FEIN for the employee (NCP). When a ‘W’ is entered, the correct FEIN must be entered in the “Corrected FEIN” field. |
Rejected IWO
If the Disposition Status Code equals R (Rejected) meaning the employer will not be processing the IWO, the “Disposition Reason Code” field must be filled. The valid values for Disposition Reason Code, along with their definitions are:
| Value in Disposition Status Code (Column K) | Valid Values for Disposition Reason Code (Column L) | Definition of Reason Code |
|---|---|---|
| R | B | An employer receives an IWO and the SSN matches a person employed by the employer, but the name is different. |
| R | D | Duplicate IWO |
| R | M | An employer determines it has the exact same IWO in place from another state, e.g., same NCP/CP/Child(ren), obligation amount(s), etc. When an ‘M’ is in the Disposition Reason Code field, a valid two-character State code must be entered in the Multi IWO State Code field. |
| R | N | Employee no longer employed at the company |
| R | O | Other Reason – does not fit one of the Disposition Reason Codes. |
| R | S | The employee (NCP) is currently not employed, e.g., working for a temporary employment agency, but currently not on a job/assignment, on a medical leave or suspended. |
| R | U | Employee unknown to the employer |
| R | W | The IWO received has the incorrect FEIN for the employee (NCP). When a ‘W’ is in Column L, the correct FEIN must be entered in the “Corrected FEIN” field. |
| R | X | Employer could not electronically process the record. Should rarely, if ever, be used. |
| R | Z | Termination cannot be processed – no IWO in effect. |