Does an employer have to withhold child support payments from an Independent Contractor? Answer in detail:As required by federal law enacted in 1984, Indiana enacted an income withholding law that applies to all employers/income payors, regardless of size. Pursuant to Indiana law, an "income payor" means an employer or other person who owes "income" to an obligor and "income" means anything of value. It permits enforcement offices operating in the Indiana Child Support Program to require any employer/income payor to withhold delinquent and current child support obligations from an employee/obligor's earnings. The amounts withheld must be submitted to the Indiana State Central Collection Unit (INSCCU). The law also applies to payments owed to independent contractors.