Reporting Terminations

A termination occurs if the employee quits, retires, is fired or laid off. All terminated employees who have child support income withholding orders need to be reported as terminations to their local child support agency (LCSA). Reporting terminations should be done as soon as possible following the termination date.

How to Report Terminations

Complete page four of the Income Withholding for Support form (OMB 0970-0154) and mail or fax it to the issuing local agency. The information they will need is below:

  • Employee's name
  • Employee's case identifier
  • Employee's last known home address
  • New employer's name and address (if known)
  • Date of separation.

When an employee retires, the federal agency should notify the state Child Support Enforcement (CSE) agency of the termination and the name and address of the Federal payroll agency/processing center responsible for paying the retirement benefit. To avoid interruptions in payment to the employee's child and accrual of arrears, the employee may choose to make his/her own payments directly to the local child support agency until the retirement processing center receives a new income withholding order.

States using the National Medical Support Notice (NMSN) may require that additional information on medical support or insurance be reported, primarily to avoid interruption of medical coverage for the employee's child.

When to Stop Withholding for Child Support

Do not stop withholding for child support until one of the following occurs:

  • Official notification to stop withholding is received from the issuing local agency,
  • The employee is terminated, for whatever reason (including retirement or death), or
  • Bankruptcy proceedings are underway and a bankruptcy trustee takes over the withholding.

In The Know