40-5-312. Duties of payors. (1) A payor who has been served with an order for deduction under this part shall deduct the amount designated in the order beginning not later than the first pay period that occurs after 14 days from the service of the order. The payor shall, within 7 working days of the date the obligor is paid, promptly pay the deducted amount as directed by the order. The payor shall include with the payment a statement indicating the date the amount was deducted from the obligor’s income.

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Terms Used In Montana Code 40-5-312

  • Income: means any form of periodic payment to a person, regardless of source, including commissions, bonuses, workers' compensation, disability benefits, payments under a pension or retirement program, interest and earnings, and wages. See Montana Code 40-5-303
  • Payor: means any entity that pays income to an obligor on a periodic basis and includes any person, firm, corporation, association, employer, trustee, political subdivision, or state agency or an agent of any one of them, subject to the jurisdiction of the courts of this state under Rule 4(b) of the Montana Rules of Civil Procedure. See Montana Code 40-5-303

(2)Whenever a payor receives more than one deduction order from the same district court, the payor may combine all amounts deducted into a single payment for that month, with the portion that is attributable to each obligor separately designated.

(3)Whenever there is more than one deduction order against a single obligor the payor shall:

(a)honor all deduction orders to the extent that the total amount deducted from the obligor’s income does not exceed the limits set in 40-5-309; and

(b)comply with the orders in the sequence in which they were served upon the payor except for income-withholding orders issued by the department of public health and human services. Under 40-5-423, orders issued by the department have priority over all other orders without regard to the sequence in which they were served.

(4)The payor shall promptly notify the clerk of the district court that issued the deduction order of the termination of the obligor’s employment and provide the obligor’s last-known address and the name and address of the obligor’s new payor, if known.