Illinois orders labeled “Delinquent Child Support, Notice of Levy on Wages, Salary, and Other Compensation” requesting payment to the Illinois Department of Revenue (IL Dept of Revenue) because the SSA beneficiary did not pay his/her child support are processed differently than Illinois garnishment orders.
These withholding orders entitle the claimant to an exempt amount (similar to a tax levy) of at least $1004.25. This amount is calculated by multiplying the federal minimum wage ($5.15) times 45 which is multiplied by 52 weeks and divided by 12 months.
Determine the withholding amount as follows: (This is a simplified version of filling out columns A-H, Step 2 on the Illinois Form EDC-111.)
Determine the current MBP as shown on the MBR query. If the MBP is $1004.25 or less, SSA cannot comply with the withholding order since the exempt amount is not met or it is just met with no excess for withholding.
If the MBP is greater than $1004.25, subtract $1004.25 from the MBP; calculate 15% (.15) of the MBP. The amount to send to the Illinois Department of Revenue is the smaller of these two amounts.
Enter the amount from this calculation into COGS. Do not enter a percentage amount. Due to the unique calculation of the garnishment amount for these orders, an actual money amount must be entered into COGS.
If the case number of an existing order (s) is the same as the new order from the IL Department of Revenue, both orders must be honored. Send the money on both the existing order and the newly calculated amount to the Illinois SDU, P.O Box 5400, Carol Stream, Il 60197-5400.
These orders may not contain a court order case number and generally request that the payment be made using the Debtor I.D. number, which is the beneficiary’s SSN. We cannot comply with this request because doing so would result in the SSN being visible in the check envelope window which violates our confidentiality regulations. If these orders do not have a court case number, use the contact information provided to obtain a court case number. If the order does not contain contact information, contact RO support staff or PC OA staff for guidance.
EXAMPLE 1—Exempt amount not met.
Existing garnishment deduction of $65.00
The current MBP from the MBR query is $999.00. Since the MBP is less than $1004.25, SSA cannot comply with the order. Send a manual notice to the IL Dept of Revenue explaining that SSA cannot comply with the order because the beneficiary’s benefits are below the $1004.25 exempt amount. We will continue to send $65 to the IL SDU. Do not enter into COGS because it is not yet programmed to accept this type of reject.
EXAMPLE 2—Exempt amount met.
Existing garnishment deduction of $30.00
The current MBP from the MBR query is $1085.00. Since the MBP is greater than $1004.25, continue with the following steps.
MBP of $1085.00 minus $1004.25 = $80.75
Calculate 15% (.15) of MBP of $1085.00 or $162.75
Compare a. and b. and take the smaller amount or $80.75
The withholding amount input to COGS and sent to the IL Dept of Revenue is $80.75. We will continue to send $30 to the IL SDU.
NOTE: If the amount due under the two orders exceeds the Federal limits, the payments will be prorated. That calculation will be done by COGS.
EXAM PLE 3—Exempt amount met, no existing garnishment.
The current MBP from MBR query is $1431.00. Since the MBP is greater than $1004.25, continue with the following steps.
MBP of $1431.00 minus $1004.25 = $426.75
Calculate 15% (.15) of MPA of $1431.00 or $214.65
Compare a. and b. and take the smaller amount or $214.65
The withholding amount input to COGS and sent to IL Dept of Revenue is $214.65.
If an inquiry is received about an Illinois “Delinquent Order” because we have reduced the withholding rate, inform the beneficiary that SSA has corrected the withholding amount based on a communication received from the Illinois Department of Revenue. If they want to dispute amounts previously withheld, tell them that SSA is unable to repay any benefits previously withheld based on federal law. They must take their dispute to the Illinois Department of Revenue.
If an inquiry from is received from an individual because the amount of money he/she receives from the State of Illinois has been reduced as a result of this change, refer the individual to the Illinois Department of Revenue.