The regulations are due two years after the enactment of the act, or on October 1, 1998. The system must transmit withholding orders to employers, monitor payment defaults, and use automatic enforcement procedures. A state or local IV-D agency may disclose wage information to contractors. For interstate cases, federal income withholding, liens, and subpoena forms must be used. Income Withholding States must transmit withholding orders to employers within two days and may use electronic means.
Employers have seven business days after payday to send withholding to the state disbursement unit.
Employer's principal place of employment determines which state law the employer must comply with in responding to an employee's withholding notice. It requires every employer to furnish, to the Directory of New Hires in the state in which the employee is hired, a report containing the name, address and social security number of each new hire and the name, address and identifying number of the employer. Employers must report new hires within 20 days after the hire or first pay. Within five days of receipt, states must enter new hires into their Directory of New Hires. Within three days of entry to the state directory, states must transmit data to the national directory.