A Support Deduction Notice (SDN) is a legal document issued by the Maintenance Enforcement Program (MEP) that requires payment of funds. SDNs used to be known as "wage garnishees" or "notices of continuing attachment." Where an SDN is sent to a debtor's employer, the employer is required to pay MEP a portion of the debtor's gross wages.
MEP encourages debtors to voluntarily choose to make their maintenance payments through their employer by completing a Debtor Payment Form. This is the most convenient way for debtors to make payments and can help to ensure that court-ordered support is received in full and on time. If payments from an SDN cannot reach MEP on or before the court-ordered due date, the debtor should contact MEP to make a payment arrangement so that you are not charged late penalties and interest. A voluntary SDN may be removed by the debor once alternate payment arrangements are in place, such as direct debit from the debtor's bank account.
An SDN can also be used as a collection tool when the debtor is not paying on a court order or enforceable agreement. To protect debtors' privacy, neither MEP staff nor the SDN documents will tell the employer whether the SDN was issued at the debtor's request or as a collection tool to collect overdue payments.
Where the debtor chooses to make payments through an SDN, the amount deducted from the debtor's wages and sent to MEP will be set to match the dollar amount or percentage of gross wages that the debtor has arranged with MEP. SDNs issued by MEP to collect when a debtor is not voluntarily paying maintenance can attach any wages over and above the debtor's exemption. An exemption is the base amount of money allowed the debtor for his or her own support. Currently, the debtor is entitled to an exemption of 60% of gross wages or salary, and the remaining 40% of gross wages must be sent to MEP . Debtors are encouraged to contact MEP staff to make an alternate payment arrangement if the 40% does not allow them sufficient funds for their basic daily needs.
Gross wages means all wages or salary before any mandatory or voluntary deductions are made. This includes holiday pay, bonuses, incentive-based pay and overtime. Employers served with an SDN must also send MEP 40% of all severance and termination packages, although MEP is entitled to ask for 100% of those monies and may occasionally do so.
Upon receipt of an SDN, employers have 15 days to send any funds that have been attached and to confirm how and when they pay that employee. Employers have a legal obligation to make appropriate payment to MEP from all future paycheques of the debtor until the SDN is removed. If an employer does not respond to an SDN, the employer may be personally liable for the employee's entire maintenance arrears.
When MEP receives funds from an employer, they are typically sent to the creditor without the need for bank clearance. Creditors usually receive maintenance payments on a regular basis when an SDN is in place, but not always on the due date. Delays in the creditor's receipt of payments will result because of the scheduling of the debtor's pay period and the time required for an employer to send funds to MEP. For example, a support payment due on the first day of the month may not be collected until the debtor's mid-month or month-end pay, and may take up to a week to reach MEP after that.
If the debtor leaves the place of employment after the SDN is issued, the employer must notify MEP promptly. Employers are also responsible for monitoring whether the debtor returns to work for them, as the SDN is in effect for 12 years. The employer must resume deductions if the debtor resumes employment.
Section 40 of the Maintenance Enforcement Act prohibits an employer from dismissing, suspending, laying off or discriminating against an employee, if the reason for doing so is in any way related to the service of an SDN on the employer.