My question involves child support in the State of: All
We are an employer: Our Vendor Master Data department has declared that for all vendors to be set up, including a Child Support Garnishment order, a W-9 is required from the state agency or attorney BEFORE we can remit payments withheld from the employee's pay. They have told us that they can set up a "dummy" vendor so we can withhold the child support; but that we cannot remit the monies withheld; and when we are contacted by the employee or the agency we should merely tell them that once we get the W-9 we will release the funds.
We have tried on numerous occasions to tell them that a W-9 isn't required, since these child support payments are not 1099 reportable. But they insist. Now W-9 = no payment. Is there something somewhere in writing that we can use to convince them that this won't work; that it's opening the company to some serious legal issues? And they need to drop this silly W-9 requirement?