15 AAC 125.571. Priorities for withholding for multiple orders

(a) Except as provided in 15 AAC 125.572, if an employer receives multiple orders from the agency to withhold income for an employee who is the obligor under the multiple orders but for different obligees, the employer shall withhold from the obligor's income an amount determined by adding together the withholding amounts required by each of the orders, but not to exceed an amount equal to the percentage of the obligor's disposable earnings set out in 15 AAC 125.540(c) unless the agency has found good cause under 15 AAC 125.540 to increase the percentage amount to be withheld. If the amount to be withheld under the multiple orders exceeds the percentage amount required to be withheld by the agency under 15 AAC 125.540, the employer shall withhold and deliver, in the following order of priority:

(1) first, to the agency the amounts required to satisfy the monthly child support and spousal support obligation for the month in which the withholding occurs for each of the support orders subject to withholding;

(2) second, to the appropriate group health plan the amounts necessary to provide coverage for the children as required by each of the support orders subject to withholding for medical coverage; and

(3) third, to the agency the amounts required to satisfy the past-due child and spousal support obligations, interest, and fees, as provided in the income withholding orders.

(b) Except as provided in 15 AAC 125.572, if the orders to withhold and deliver have been issued by two or more tribunals, the employer shall apply the following formula to determine the amounts that the employer shall withhold and deliver under each order:

(1) the employer shall calculate the amount of the employee's total ongoing child support obligation by adding together the ongoing monthly child support amount required by each of the orders;

(2) the employer shall determine the employee's allowable withholding amount; to make the calculation, the employer shall multiply the employee's disposable earnings for the pay period in question by the applicable percentage in 15 AAC 125.540(c) unless the agency has found good cause under 15 AAC 125.540 to increase the amount to be withheld to an amount that exceeds the percentage under 15 AAC 125.540(c) ;

(3) if the amount of the employee's total ongoing child support obligation, as calculated under (1) of this subsection, is

(A) greater than the employee's allowable withholding amount, as calculated under (2) of this subsection, the employer shall allocate the amount withheld to each order based on the percentage that the employee's ongoing monthly child support amount under each order bears to the amount of the employee's total ongoing child support obligation, and shall deliver to the appropriate tribunal the amount of the allocation; and

(B) less than the employee's allowable withholding amount, as calculated under (2) of this subsection, the employer shall first satisfy the employee's ongoing child support obligation under each order for the month in which the withholding occurs; the employer shall next calculate the employee's total ongoing spousal support obligation by adding together the ongoing monthly spousal support amount required by each of the orders;

(4) if the amount of the employee's total ongoing spousal support obligation, as calculated under (3)(B) of this subsection, is

(A) greater than the remaining allowable withholding amount after satisfaction of child support obligations in accordance with (3)(B) of this subsection, the employer shall allocate the amount withheld to each order based on the percentage that the employee's ongoing monthly spousal support amount under each order bears to the amount of the employee's total ongoing spousal support obligation, and shall deliver to the appropriate tribunal the amount of the allocation; and

(B) less than the remaining allowable withholding amount after satisfaction of child support obligations in accordance with (3)(B) of this subsection, the employer shall first satisfy the employee's ongoing spousal support obligation under each order for the month in which the withholding occurs; the employer shall next calculate the amount necessary to provide medical coverage for the children as required by each of the support orders subject to withholding for medical coverage;

(5) if the medical coverage amount, as calculated under (4)(B) of this subsection, is

(A) less than the remaining allowable withholding amount after satisfaction of spousal support obligations in accordance with (4)(B) of this subsection, the employer shall withhold and deliver to the apppropriate group health plan the medical coverage amount; after satisfaction of the medical coverage amount, the employer shall divide the remaining allowable withholding amount in accordance with (B) of this paragraph; and

(B) greater than the remaining allowable withholding amount after satisfaction of spousal support obligations in accordance with (4)(B) or this subsection, the employer may not withhold for medical coverage; the employer shall divide the remaining allowable withholding amount equally among all orders for payment of arrears, interest, and fees, but not to exceed the total withholding required by each withholding order; the employer will deliver to each tribunal the amount allocated to that tribunal's order under this subparagraph.

History: Eff. 11/30/2002, Register 164

Authority: AS 25.25.502

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