All collections, except federal tax refund intercepts,
are credited to current monthly support (child support first, medical
second, and spousal third.)
If there is money remaining after paying current support,
it is used to pay arrearages. The money for each arrearage type is first
applied to interest and then to principal. (There are several different
arrearage types, and they are paid in a specific order. After one type
is paid off, the remainder is paid to the next arrearage type. See below
under Types of Arrears.)
If there is money remaining after all arrearages have
been paid, it is credited to the non-custodial parent for the future
month. If the family is aided, this amount is held by the child support
agency and applied to the case in a future month if a current support
payment is not made. Otherwise it is paid to the family.
Today, child support payments are collected and processed by a single entity – the California State Disbursement Unit (SDU). Required by federal law, the SDU processes 100% of child support payments that used to be handled at the Local Child Support Agencies.
SDU offers parents more options - Today child support payments can be received by:
- Direct Deposit
- An electronic payment card (EPC)
– similar to an ATM card
- Standard bank check