Arizona Laws 25-505. Limited income withholding orders; definition
A. The department or its agent may issue a limited income withholding order to any employer, payor or other holder of a nonperiodic or lump sum payment that is owed or held for the benefit of an obligor. The department or its agent shall serve the order in the same manner as prescribed in Section 25-505.01 for service of income withholding orders. The employer, payor or holder shall deliver or mail by first class mail a copy of the order to the obligor within ten days after service on the employer, payor or holder.
Terms Used In Arizona Laws 25-505
- Department: means the department of economic security. See Arizona Laws 25-500
- Income: means any form of payment owed to an individual, regardless of source, including wages, salaries, commissions, bonuses, workers' compensation, disability payments, payments pursuant to a pension or retirement program and interest. See Arizona Laws 25-500
- Obligor: means a person obligated to pay support. See Arizona Laws 25-500
- Support: means the provision of maintenance or subsistence and includes medical insurance coverage, or cash medical support, and uncovered medical costs for the child, arrearages, interest on arrearages, past support, interest on past support and reimbursement for expended public assistance. See Arizona Laws 25-500
- Support payment clearinghouse: means the clearinghouse established pursuant to section 46-441. See Arizona Laws 25-500
B. The limited income withholding order shall state the amount of current support and any arrearages owed by an obligor and shall direct the employer, payor or holder to withhold and pay to the support payment clearinghouse the amount specified in the order and not otherwise exempt by law.
C. The limited income withholding order shall include a notice to the obligor of the right to an administrative review pursuant to section 25-522. The obligor, employer, payor or holder may contest the limited income withholding order in the same manner prescribed in Section 25-505.01 to contest an income withholding order.
D. Notwithstanding sections 23-351 through 23-355, the employer, payor or holder who receives an income withholding order pursuant to Section 25-505.01 or an order of assignment pursuant to section 25-504 shall withhold the amount specified and transmit that amount to the support payment clearinghouse immediately.
E. For the purposes of this section, "lump sum payment" includes:
1. Severance pay.
2. Sick pay.
3. Vacation pay.
4. Bonuses.
5. Insurance settlements.
6. Commissions.
7. Stock options.
8. Excess proceeds.
9. Retroactive disability proceeds.
10. Personal injury awards.