Many restaurant owners receive Friend of the Court (FOC) withholding orders.  These court orders require an employer to withhold monies out of the paycheck of the subject employee and forward those monies to the court.

There are strict rules regarding FOC orders and an employer can get stuck with owing monies to the court if not paid or withheld properly. 

Kallas Auto Payroll service provides FOC services as part of your payroll at a minimal cost.  Note that FOC orders are different than Garnishments.  Garnishments are a separate topic we will talk about in a future newsletter.

Here are the basic rules regarding FOC orders.  For an expanded explanation of the rules, call Ravyn at Kallas.

• Any employer (or other source of income) who receives a notice of income withholding and who owes money to the employee must withhold income.
• An employer must withhold income seven days after the employer receives the notice.
• For Michigan court cases, an employer must send the income to the Michigan State Disbursement Unit (MiSDU) within three days after it is withheld.
• In Michigan cases, the FOC whose circuit court ordered support must send a new notice to the employer if the support amount changes.
• The income-withholding remains in effect until it is canceled. The FOC will send the employer a written notice to stop the withholding.
• Under Michigan law, an order to withhold income for child support has priority over all other legal processes for the same income, including garnishments and other payroll deductions (except tax withholding and other child support orders).
• Employers are liable for any support that they fail to withhold. The court will require the employer to pay the amount it should have withheld. The court may also find an employer in contempt of court and impose a fine for failing to obey the withholding order.
• Under MCL 552.608 and 552.611a, no more than 50 percent of the employee’s disposable income may be withheld.
• An employer must include the employee’s name and social security number, the employee’s court case number, the amount it issues, and the date on which the money was withheld from the employee’s income. The employer or other source of income must also provide its federal employer identification number.
• Michigan law does not allow employers to charge a fee for processing Michigan income withholding orders.
• An employer must obey an income withholding notice even if the employee disputes the order.
• Employers must notify the FOC if the employment relationship ends or is interrupted for a period of 14 or more consecutive days. In the case of termination, employers must also provide the FOC with the employee’s last known address and the name and address of the employee’s new employer (if the employer has that information).
• It is a criminal offense to refuse to employ someone, or to discharge, discipline, or penalize a current employee because of income withholding. It is punishable by a fine up to $500 and full restitution to the employee, including both reinstatement and back pay.
• Upon the FOC’s request, an employer must provide the employee’s full name and address, social security number, date of birth, amount of wages or other income, and employment status, plus information about any dependent health care coverage that the employee can obtain as a benefit of employment.
• Michigan law now allows the FOC to send an income withholding notice to employers or other sources of income regarding fines, fees, and costs by an employee. These notices are on a separate income withholding notice and the withheld income should be sent directly to the FOC. Normal child support income withholding notices take precedence over the notices payable to the FOC.