State Disbursement Unit

In the United States, a State Disbursement Unit (SDU) is a state government agency that collects and disburses child support payments from one parent to the other.

States are required to establish as State Disbursement Unit by federal law, specifically Title 45 of the Code of Federal Regulations.[1]

Tasks

SDUs do not determine child support payments, this happens in court. The court also decides whether child support is to be paid directly to the receiving parent, or via the responsible SDU.[2] The main tasks of a SDU are:

  • collecting payments from the parent required to pay support - usually either by direct payment or by directing the parent's employer to withhold the payments from their wages[3]
  • in some cases, deducting money to recollect state welfare paid previously to the receiving parent[4]
  • distributing the money to the receiving parent
  • keeping track of the money received and disbursed, to aid all parties in determining whether payments were made and disbursed correctly
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References
  1. "45 CFR 302.32 - Collection and disbursement of support payments by the IV-D agency".
  2. "Making child support payments directly to the other parent". Child support should not be paid directly to the other parent unless the child support order specifically says to do so. Normally, the payment is taken directly out of the paying parent's paycheck, is sent to the Illinois State Disbursement Unit (SDU), and is then sent to the parent receiving child support.
  3. "Frequently Asked Questions". CA Child Support Services. Retrieved 2019-10-23. My employer takes my child support payment out of my paycheck. Do I need to do anything? No, your employer should have information on when, how and where to send your payments.
  4. "How Child Support Impacts Welfare Benefits". 2017-10-09. The paying parent is still required to pay the full child support obligation to the SDU, who will keep the full amount of money, other than the $100 pass-through payment being made. This allows the state to recollect some of the money that it had previously spent on the children and family in question.
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