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APA Recommends Changes to Nevada Child Support Bill

BY: Alice P. Jacobsohn, Esq. | 04/09/21

The APA offered recommendations to the Nevada legislature on A.B. 37 regarding the management of lump-sum payments for child support. The APA’s recommendations relate to model legislation developed by the Lump Sum Collaborative Workgroup, which includes representatives from state child support enforcement agencies and payroll professionals.

Here are APA’s recommendations:

  • Change the definition of lump-sum payments. The definition should be based upon the U.S. Department of Labor’s (DOL) opinion letter interpreting the Consumer Credit Protection Act (CCPA).
  • Employer reporting. Nevada should not prescribe a separate lump-sum payment reporting form and should allow for use of a national, standardized, electronic reporting process.
  • Withholding amount. Employers should be able to release 50% of the disposable earnings portion of the lump-sum payment immediately to the employee.
  • Notice of payment. The bill would require employers to notify the state 10 days before intending to release the lump-sum payment to the employee. Payroll departments rarely know in advance that an employee will receive a lump-sum payment. The APA recommended that employers hold 50% of the lump-sum payment and allow Nevada 15 calendar days to respond.

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Alice P. Jacobsohn, Esq., is Director of Government Relations for the APA.