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SDCL 25-7A-1 (8)

"Income," any form of payment to a person, regardless of source, including wages, salary, commission, bonuses, compensation as an independent contractor, workers' compensation, unemployment compensation, disability, annuity and retirement benefits, gift or inheritance, all gain derived from capital or labor, profit gained through the sale or conversion of capital assets, and any other payments, including personal property, money and credits on deposit with or in the possession of, or made by any person, private entity, federal or state government, any unit of local government, school district or any entity created by public act. However, for the purposes of income withholding, income excludes:
(a) Any amount required by law or as a condition of employment to be withheld, other than creditor claims, including federal, state and local taxes, social security and other retirement contributions;
(b) Any amount exempted by federal law; and
(c) Public assistance payments;

SDCL 25-7A-23.

Order for withholding of income or property. Upon entry or modification of any order for support, an order for withholding of income or property shall be entered, which shall take effect immediately, unless the obligor or obligee demonstrates, and the court finds, that there is good cause not to require immediate income withholding or if the parties make a written agreement which provides for an alternative arrangement approved by the court. If immediate income withholding is not required, withholding shall take effect if the obligor becomes delinquent in paying any part of the order for support, or upon the date the obligor requests withholding of income, whichever first occurs.

SDCL 25-7A-24.

Order for withholding of income served upon obligor where delinquent or support arrearage owed. If an order for support does not contain a provision for immediate withholding of income or property and an obligor becomes delinquent in any part of the payment of support obligations pursuant to the order for support, or an arrearage exists, the department shall prepare and serve an order for withholding of income on the payor as provided by § 25-7A-30. The department shall also advise the obligor of the procedures to contest the withholding.

SDCL 25-7A-26.

Petition to stay service of order for withholding -- Grounds. The obligor may contest the order for withholding of income by filing a written request for administrative review with the department within ten days after service of the order. The grounds for contesting the withholding shall be limited to:
(1) A dispute concerning the existence or amount of the order for support or delinquency or arrearage; or
(2) The proper identity of the obligor.
The department may adopt rules pursuant to chapter 1-26 to implement the provisions of this section.

SDCL 25-7A-30.

Service of order for withholding. The department shall enter and serve the order for withholding on the payor, its superintendent, manager or other agent, by certified mail or personal delivery. A copy of the order shall be mailed to the obligor at the obligor's last known post office address. The order for withholding shall be entered whether or not the order for support contains a provision for withholding of income or property.

SDCL 25-7A-31.

Order for withholding -- Contents. The order for withholding shall direct any payor to withhold:
(1) An amount equal to the order for support; and
(2) An additional amount not less than ten percent of the order for support, until payment in full of any delinquency.

SDCL 25-7A-32.

Amount withheld for support and arrearage. The amount actually withheld for support and arrearage may not be in excess of fifty percent of wages, salaries, commissions, bonuses, compensation as an independent contractor, workers compensation, unemployment compensation or disability benefits. However, the total amount of arrearage may be withheld from personal property, money and credits, or other income not otherwise exempt herein.

SDCL 25-7A-33.

Order for withholding not conclusive on issue of arrearage. The failure of an order for withholding to state an arrearage is not conclusive of the issue of whether an arrearage is owing.

SDCL 25-7A-34.

Deduction and transmittal of income by payor. Any payor who has been served with an order for withholding of income shall deduct and pay over income or assets as provided in this section. The payor shall deduct the amount designated in the order for withholding. The first payment shall be deducted from the payment of income which is payable to the obligor following service of the order. The payor shall transmit the amount withheld to the department in accordance with the order for withholding within seven business days after the date the obligor is paid or the obligor's property withheld and in accordance with any subsequent notification received from the department redirecting payment. In addition to the amount designated in the order for withholding, the payor may deduct an amount not to exceed three dollars per month from the obligor's income to cover the expenses involved in transmitting the amount withheld.

SDCL 25-7A-35.

Compliance by payor where multiple orders for withholding or multiple obligors. Any payor who is served with more than one order for withholding against an obligor shall comply with all orders to the extent that the total amount withheld from income does not exceed the maximum amount permitted under § 25-7A-32, giving priority in withholding to an order for current support.
A payor may combine amounts withheld from income of several different obligors in a single payment to the department identifying the portion attributable to each obligor.

SDCL 25-7A-36.

Duty of payor where obligor terminated -- Service of order upon new payor. If the obligor is no longer receiving income from the payor, the payor shall return a copy of the order for withholding to the department within five days after termination of employment, and shall cooperate in providing information for the purpose of enforcing this chapter, including the obligor's last known address and the name and address of any new payor, if known.
Upon receipt of a notice of change of payor when an order for withholding is in effect, the department shall serve a copy of the order upon the new payor in the same manner as provided for in § 25-7A-30.

SDCL 25-7A-37.

Withholding made without regard to other claims -- Complete defense by payor to claims of obligor. Withholding of income under this chapter shall be made without regard to any prior or subsequent legal process under state law, including garnishments, attachments, wage assignments or any other claims of creditors. Payment as required by the order for withholding shall be a complete defense by the payor against any claims of the obligor or the obligor's creditors as to the sum so paid. A payor who complies with an order for withholding of income that is regular on its face is not subject to civil liability to any individual or agency for any conduct which is in compliance with the order.

SDCL 25-7A-38.

Modification, suspension or termination of order for withholding. At any time, either upon petition of an obligor or obligee and hearing thereon, or without petition, the department may:
(1) Modify, suspend or terminate the order for withholding because of a modification, suspension or termination of the underlying order for support or arrearage judgment;
(2) Reduce the amount of income to be withheld to reflect payment in full of the arrearage by income withholding or otherwise;
(3) Suspend the order for withholding because of inability to deliver income withheld to the obligee due to the obligee's failure to provide a mailing address or other means of delivery; or
(4) Terminate the order for withholding if no current support obligation is due and the arrearage has been paid.

SDCL 25-7A-39.

Notice to payor. The department shall serve on the payor, by certified mail or personal delivery, a copy of any order entered pursuant to this chapter that affects the duties of the payor.

SDCL 25-7A-40.

Binding effect of order for withholding. The order for withholding is binding upon the payor until service of an amended order for withholding or termination.

SDCL 25-7A-44.

Collection, apportionment and disbursements of payments by department -- Payment records. The department shall collect, disburse and receive payments pursuant to orders for withholding. The department may apportion withheld amounts among multiple support orders, giving priority to current support, and shall maintain complete and accurate records of all payments and disbursements. Withheld amounts that are due to an obligee other than the department shall be distributed promptly to the obligee. A certified copy of payment records maintained by the department or clerk of courts shall, without further proof, be admitted into evidence in any legal proceedings under this chapter.

SDCL 25-7A-45.

Actions against payor by department. In all cases the department may file an action pursuant to chapter 15-6 in circuit court for judgment and issuance of execution for the total amount that the payor failed to withhold or pay over to the department, and for an order for reinstatement of employment or restitution to the obligor, or both, if the obligor has been discharged, disciplined or otherwise discriminated against by the payor.

SDCL 25-7A-46.

Intentional violation by payor as petty offense. Any payor who intentionally:
(1) Fails to withhold or pay over income to the department pursuant to a valid order for withholding;
(2) Discharges, refuses to employ, disciplines, or penalizes an obligor because of the order for withholding; or
(3) Otherwise fails to comply with any of the duties imposed by this chapter;
commits a petty offense.

SDCL 25-7A-47.

Request to another state to withhold income of obligor. The department shall request the Title IV-D agency of another state in which an obligor who is delinquent in his support obligation, derives income, to enter an order for the purpose of withholding of income for support. The request shall advise the agency to provide proper notice of withholding to the obligor, including the opportunity to contest the withholding of income, and to order the payor of income to withhold the amount requested. The request shall contain a copy of the order for support, the amount to be withheld, a statement of the arrearage, and any other information necessary to carry out the withholding of income.

SDCL 25-7A-48.

Order to withhold income of obligor upon request from another state. Upon receiving a request from the Title IV-D agency of another state that withholding of income of an obligor is required, including the documentation specified in § 25-7A-47, the department shall issue an order to the payor of income to withhold income or property of the obligor in accordance with the provisions of this chapter.

SDCL 25-7A-49.

Law applicable to withholding of income derived within state. Except with respect to when income withholding shall be implemented, which shall be controlled by the law of the state in which the support order is entered, the law and procedures of this state are applicable to the withholding of income of an obligor deriving income within this state.

SDCL 25-7A-50.

Notice to other state where obligor ceases to derive income within state. The department shall notify the Title IV-D agency of the other state if the obligor ceases to derive income in this state, and provide the name and address of the obligor and of the new payor of income, if known.

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