Texas residents are likely aware that paychecks can be garnished for unpaid child support, but they may not know that people sometimes try to get around these deductions by seeking a job that allows them to work as an independent contractor. Employers in Texas say that employees often quit when child support starts to be deducted from their paychecks, and many of these workers then seek out positions where they can avoid the garnishment by being paid off the books or classified as an independent contractor.
An independent contractor is an individual or business entity hired to perform a specific task or service for another entity, but they are not considered an employee of that entity. Independent contractors operate independently, maintain control over how they perform their work, and are typically responsible for their own taxes, insurance, and other business expenses.
Common examples of independent contractors in Texas include:
- Freelancers: Writers, designers, programmers, and other professionals who offer their services on a project basis.
- Consultants: Experts in a particular field who provide advice, analysis, or specialized services to businesses or individuals.
- Contractors: Construction workers, plumbers, electricians, and other tradespeople who are hired to complete specific projects or tasks.
- Delivery Drivers: Couriers or drivers who are contracted to deliver goods or provide transportation services.
- Real Estate Agents: Professionals who assist clients in buying, selling, or renting properties on a commission basis.
- Event Planners: Individuals or companies hired to plan, organize, and execute events such as weddings, conferences, or parties.
- Photographers and Videographers: Professionals who are hired to capture images or videos for events, advertising, or other purposes.
- Fitness Instructors: Personal trainers, yoga instructors, and other fitness professionals who provide training sessions on a contract basis.
- IT Professionals: Computer technicians, network administrators, and software developers who offer their services to businesses on a freelance or contract basis.
- Drivers: Ride-sharing drivers, truck drivers, and other transportation professionals who work as independent contractors for companies like Uber, Lyft, or delivery services.
Garnishments for delinquent child support are ordered by the office of the Texas Attorney General, and the rules are supposed to apply to all workers. However, authorities find it difficult to collect delinquent child support from independent contractors. Matters are made even more challenging when employers classify workers as independent contractors instead of employees to avoid payroll taxes and workers' compensation requirements. Figures from the Texas Workforce Commission reveal that more than 35,000 workers were misclassified in the state between 2010 and 2012. This practice is said to cost the state's unemployment insurance fund over $2 million each year.
Authorities in Texas collected $3.8 billion in unpaid child support in 2014, and more than three-quarters of that money was collected from employers. While a database contains 400,000 employers in Texas, many of them are slow to make the necessary notifications when an individual is taken on as an independent contractor. Efforts to address the problem include a proposed change in the law that would extend the definition of worker to include independent contractors.
A family law attorney will likely understand the frustration of custodial parents who are not receiving court-ordered child support payments in a timely manner. Many parents rely on child support to make ends meet, and an attorney could initiate legal action to have liens attached to the bank accounts of noncustodial parents in situations where a paycheck garnishment is not possible.
Other alternatives to wage garnishment include:
- Direct Payment: The non-custodial parent can make direct payments to the custodial parent or the state child support agency. This method relies on the cooperation and reliability of the non-custodial parent to make timely payments.
- Automatic Bank Withdrawal: The non-custodial parent can authorize automatic withdrawals from their bank account to be sent directly to the custodial parent or the state child support agency. This ensures regular and timely payments without the need for manual intervention.
- Electronic Payment Systems: Many state child support agencies offer electronic payment systems that allow non-custodial parents to make payments online or through mobile apps. These systems often provide options for credit/debit card payments, bank transfers, or electronic checks.
- Income Withholding Orders (IWOs) for Non-Wage Income: If the non-custodial parent receives non-wage income such as self-employment income, rental income, or retirement benefits, the child support agency can obtain an Income Withholding Order (IWO) to collect payments directly from these income sources.
- Tax Refund Intercept: State child support agencies can intercept federal and state income tax refunds owed to the non-custodial parent to satisfy past-due child support obligations. This method can be particularly effective for recovering large sums of unpaid child support.
- Contempt of Court: If the non-custodial parent consistently fails to make child support payments despite court orders, they may be held in contempt of court. This can result in fines, license suspensions (such as driver's licenses or professional licenses), or even imprisonment until the child support obligations are met.
- Alternative Dispute Resolution: Mediation or arbitration can be used to resolve disputes between parents regarding child support payments. A neutral third party helps the parents reach a mutually acceptable agreement outside of court.
If a non-custodial parent continues to avoid paying child support in Fort Worth, contact the Law Office Of Mark M. Childress today to let us help you and your child.