PA Child Support Changes Effective August 30, 2016

Pennsylvania passed new legislation in July related to the administrative fee that employers can charge employees for withholding income for support.


Before the new July legislation, employers were allowed to deduct up to 2% of the per period child support deduction as an administrative fee. Effective August 30, 2016, Pennsylvania employers are allowed to deduct a one-time fee of $50 for administrative fees related to withholding income for support. Administrative fees cannot be deducted from the withholding amount, and Consumer Credit Protection Act limits apply to total amounts withheld from employees’ wages.

The Details...

  • The one-time $50 fee applies to an employee, not to each child support order issued to an employee.
  • An employee may be charged one $50 fee, no matter how many child support orders the employer receives for the employee.  
  • The one-time fee applies for as long as the employee is employed with his/her employer.
  • A break in service of at least one year would qualify for a new $50 fee to be charged if an employee was rehired.

The one-time $50 fee can be withheld by the employer any time (after August 30, 2016) during the employee’s period of employment. However, 2% administrative fee withholdings must stop effective August 30, 2016. If necessary, the employer may spread the $50 deduction over multiple pay periods.

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Human Resources Director Jay Fleecs, Norfolk Iron & Metal Co.

[Optimum's] proactive approach allowed Norfolk Iron to send the 1095-C forms to all employees at the same time we sent the W-2s, where other payroll vendors and companies were still wondering how to comply with this process.