Title 15 . Revenue

Chapter 125 . (Repealed)

Section 540. Calculation of monthly income withholding amount

15 AAC 125.540. Calculation of monthly income withholding amount

(a) In determining the amount of a withholding order issued under AS 25.27.062 or AS 25.27.250 , the agency will calculate the monthly withholding amount by adding the following amounts:

(1) the monthly ongoing support obligation;

(2) the monthly interest charge; and

(3) a monthly amount to be collected and applied to arrears, as determined using the applicable arrears amortization chart set out in 15 AAC 125.545.

(b) In calculating the amount to be withheld and delivered, the agency will give credit to the obligor for one-half of the cost to the obligor of medical and dental insurance premiums for the children and educational payments for the children to the extent that the health insurance coverage and educational payments are required by the applicable support order and are actually paid for by the obligor, unless the order provides for a different allocation of these costs.

(c) Unless state or federal law requires a lesser percentage, an order to withhold and deliver issued by the agency under AS 25.27.062 or AS 25.27.250 may not exceed 40 percent of an obligor's net disposable earnings, as defined in 15 U.S.C. 1672, unless the agency determines that there is good cause to increase the withholding amount. However, the withholding order may not exceed the percentages allowed under 15 U.S.C. 1673(b).

(d) In determining whether good cause exists to increase the withholding amount under (c) of this section, the agency will consider the following factors:

(1) the amount of the arrears owed by the obligor;

(2) the obligor's payment history, including the number of payments received in the past 12 months;

(3) whether payments have been received from the state for unemployment compensation owed to the obligor;

(4) the obligor's income and other assets available to satisfy the support obligation;

(5) whether the obligor has been eligible and has applied for a permanent fund dividend under AS 43.23;

(6) the existence of a pending court or administrative action that could significantly affect the amount of the arrears;

(7) evidence of bad faith or intentional evasion of the obligor's support obligation, such as evidence of fraudulent transfers or intentional concealment of assets or income;

(8) whether the obligor is seasonally employed;

(9) whether the monthly support amount includes spousal support;

(10) whether the monthly support obligation can be satisfied by withholding only 40 percent of the obligor's net disposable earnings;

(11) any other evidence that would tend to show the ability or willingness of the obligor to pay support voluntarily.

(e) The agency will find that good cause exists to increase the withholding amount under (c) of this section from 40 percent to 50 percent of the obligor's net disposable earnings if

(1) the obligor is ordered to provide health care coverage for a child;

(2) the health care coverage is enforced through a notice in the form required under 45 C.F.R. 303.32;

(3) the monthly support obligation is reduced by half the cost of the health care coverage; and

(4) the increase in the withholding amount is sufficient to cover the monthly support obligation and the cost of the health care coverage, not including arrears, interest, or fees.

History: Eff. 10/1/98, Register 147; am 6/15/2001, Register 158; am 11/30/2002, Register 164

Authority: AS 25.27.020

AS 25.27.025

AS 25.27.062

AS 25.27.063

AS 25.27.250

AS 25.27.253