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Training For Georgia Garnishment Law Requirements

Defining A "Garnishment"

A wage garnishment is any legal or equitable procedure through which some portion of a person's earnings is required to be withheld by an employer for the payment of a debt. The six basic types of garnishments are child support, federal, state, or local levies, creditor garnishments, and student loans, with the largest amount of garnishments being for child support.

About Georgia Garnishment Laws

Georgia garnishment laws govern when and how creditors can withhold wages or other assets to collect debts. Employers must comply with valid garnishment orders, applicable withholding limits, exemptions, response deadlines, and priority rules. Separate requirements may apply to child support, taxes, student loans, and other government obligations.

Compliance Overview At A Glance

• Maximum percentage: 25%
• Threshold: Federal threshold
• Employer answer deadline: Generally 30 days for continuing garnishment
• Administrative fee: Yes
• Employer cost recovery: Depends on garnishment type
• Priority rule: Child support and tax claims generally take priority
• Form name: Summons of Continuing Garnishment / Garnishee Answer

Common Garnishment Errors In Georgia To Avoid

• Failing to answer a continuing garnishment within the required deadline
• Using the wrong withholding calculation for a continuing garnishment
• Failing to properly handle a garnishment release, termination, or competing priority order

Georgia Garnishment Law Requirements

Georgia employers that receive a wage garnishment must comply with Georgia garnishment requirements as well as applicable federal law. Georgia generally limits ordinary wage garnishments to the lesser of 25% of an employee's disposable earnings or the amount by which disposable earnings exceed $217.50 per week. A special 15% limit applies when the judgment is based on a private student loan. Different rules apply to child support, alimony, taxes, bankruptcy, and other priority obligations.

Georgia Wage Garnishment Overview

In Georgia, wage garnishment generally follows the entry of a money judgment against a debtor. A judgment creditor may obtain a summons of garnishment directing an employer to withhold money, including wages, owed to the judgment debtor.

Georgia's garnishment procedures are primarily governed by Title 18, Chapter 4 of the Official Code of Georgia Annotated. Georgia provides both ordinary garnishment proceedings and continuing garnishment proceedings for employers and other parties with periodic payment obligations to the judgment debtor.

Georgia Wage Garnishment Limits

For an ordinary judgment-related garnishment, Georgia Code § 18-4-5 generally limits the amount of disposable earnings subject to garnishment to the lesser of:

• 25% of the employee's disposable earnings for the applicable workweek
• The amount by which the employee's disposable earnings for the week exceed $217.50

If the judgment upon which the garnishment is based arose from a private student loan, the percentage limit is reduced to 15% of the employee's disposable earnings for the week.

For employees paid on a schedule other than weekly, Georgia law provides for a proportionate fraction or multiple based on 30 hours per week at $7.25 per hour when applying the statutory threshold.

Disposable Earnings

Georgia's garnishment forms calculate disposable earnings by starting with gross earnings and subtracting Social Security, withholding tax, and other mandatory deductions required by law.

For a continuing garnishment, Georgia's statutory Garnishee Answer specifically requires the employer to report gross earnings, total Social Security and withholding taxes and other mandatory deductions, total disposable earnings, and the amount of wages subject to garnishment.

Employers should calculate disposable earnings before applying the garnishment limitation rather than simply applying the garnishment percentage to gross wages.

Georgia Garnishment Process and Employer Response

When an employer is served with a summons of garnishment, the employer becomes the garnishee and must respond to the court. Georgia law establishes different procedures depending on whether the garnishment is an ordinary garnishment, a continuing garnishment, or a support garnishment.

For an ordinary garnishment, the garnishee's answer generally must be filed with the court not sooner than 30 days and not later than 45 days after service of the summons. Money or other property admitted to be subject to garnishment must generally be sent or delivered to the court concurrently with the answer.

For a continuing garnishment against an employer, the first garnishee answer is generally due not sooner than 30 days and not later than 45 days after service. Subsequent answers are generally due no later than 45 days after the previous garnishee answer date.

Employers should therefore:

• Record the date the summons of garnishment is received
• Review the summons, affidavit, notices, and accompanying documents immediately
• Verify whether the named judgment debtor is an employee or otherwise receives periodic payments from the employer
• Determine the employee's disposable earnings for the applicable period
• Identify the type of garnishment and determine whether special rules apply
• Apply the applicable Georgia and federal garnishment limitations
• Withhold the amount required by the garnishment
• Complete and file the required garnishee answer within the applicable deadline
• Send or deliver funds subject to garnishment to the court as required
• Continue filing answers and remitting funds while a continuing garnishment remains effective
• Maintain records of the garnishment, calculations, withholding, payments, and related correspondence

Continuing Wage Garnishment

Georgia law permits continuing garnishment against an employer of a judgment debtor. A continuing garnishment can reach wages and other periodic obligations that become payable to the debtor during the period covered by the summons.

For a continuing garnishment, the employer must file recurring garnishee answers and report the wages or other obligations that became due during the applicable period. The employer must generally send money subject to the continuing garnishment to the court concurrently with each answer.

Subsequent garnishee answers are generally due no later than 45 days after the previous garnishee answer date. The employer may have additional reporting obligations if the employment relationship terminates or if the employer no longer owes periodic payments to the judgment debtor.

Garnishee Answer Requirements

The garnishee answer is a critical part of the Georgia garnishment process. For a continuing wage garnishment, the statutory form requires the employer to identify the amount of gross earnings, mandatory deductions, disposable earnings, and the amount subject to garnishment.

The answer must also indicate whether the defendant is currently employed by or owed periodic payments by the garnishee. If the employment relationship has terminated, the employer should provide the termination date as required by the applicable form.

Employers should ensure that garnishee answers are accurate and timely. Failure to file a required answer can result in a default judgment against the garnishee for the amount remaining due on the judgment.

Georgia Garnishment Exemptions

Georgia law provides exemptions that may protect certain money and property from garnishment. Georgia Code § 18-4-6 provides that certain earnings and property may be exempt and specifically addresses retirement accounts and retirement-program benefits.

Georgia's garnishment notice also advises judgment debtors that certain benefits and property may be protected by state or federal law, including Social Security, Supplemental Security Income, unemployment compensation, workers' compensation, Veterans Administration benefits, certain state pensions, retirement funds, and disability income.

Employers should not independently determine whether an employee's property or benefits are legally exempt unless the applicable law and garnishment documents clearly require the employer to make that determination. Payroll should follow the garnishment order, applicable statutory requirements, and any court-issued modification.

Employee Exemption Claims

A Georgia judgment debtor may claim an exemption from garnishment by completing and filing the appropriate Defendant's Claim Form with the clerk of the court.

Georgia Code § 18-4-82 provides that the defendant may lose the right to claim an exemption if the claim is not filed within 20 days after the garnishee's answer is filed or if the required copies are not delivered or mailed to the plaintiff and garnishee.

When an exemption claim is properly filed, the court may schedule a hearing to determine whether the money or property should remain subject to garnishment.

Employers should not independently approve or deny an employee's exemption claim. Payroll should follow the existing garnishment unless and until the court provides different instructions.

Voluntary Modification of Continuing Garnishment

Georgia law permits the amount paid under a continuing garnishment to be voluntarily modified to a lesser amount when the plaintiff and defendant execute the appropriate statutory form.

The modification becomes effective only after the completed and attested form or a copy is filed in the garnishment court and served on the garnishee as required by law.

Employers should not reduce the amount withheld based solely on an employee's request or an informal agreement with the creditor. Payroll should require legally effective documentation before changing the withholding amount.

Multiple Garnishments

Georgia's ordinary garnishment limitation generally applies even when an employer receives summonses of garnishment in more than one garnishment case involving the same employee. The statute provides an exception for a summons of continuing garnishment for support.

Employers should therefore track all garnishments affecting an employee and determine whether a support garnishment or other priority obligation changes the amount that can be withheld.

Payroll should maintain accurate records of each garnishment, including the date received, type of obligation, amount owed, withholding calculation, and current status.

Child Support and Alimony Garnishments

Georgia provides special rules for continuing garnishments for support. Georgia Code § 18-4-53 generally limits the maximum portion of disposable earnings subject to a continuing garnishment for support to 50% of disposable earnings for the applicable workweek.

Child support and alimony obligations may therefore result in withholding amounts greater than the 25% limit applicable to ordinary judgment garnishments.

Federal law also establishes special limits for child support and spousal support withholding. Depending on the employee's circumstances, federal law generally permits withholding of up to 50% or 60% of disposable earnings, with an additional 5 percentage points potentially available when the support obligation is more than 12 weeks in arrears.

Employers processing child support or alimony orders should follow the specific order and apply all applicable Georgia and federal requirements rather than automatically using the ordinary 25% calculation.

Private Student Loan Garnishments

Georgia provides a special limitation when the judgment underlying the garnishment arose from a private student loan. Under Georgia Code § 18-4-5, the percentage limitation is 15% of the employee's disposable earnings for the week rather than the ordinary 25% limit.

The employer is responsible for applying the 15% calculation only when the summons of garnishment conspicuously states that the judgment arose from a private student loan or when the employer receives a court order in the pending garnishment action stating that information.

Employers should not independently determine whether a debt qualifies as a private student loan.

Tax Garnishments

Federal and Georgia tax collection proceedings are subject to specialized rules that may differ from an ordinary judgment-creditor garnishment.

Federal tax levies generally have their own exemption and withholding calculations, while Georgia tax collection actions may be governed by separate state procedures. Employers should follow the instructions provided by the applicable taxing authority rather than automatically applying the ordinary Georgia garnishment calculation.

Bankruptcy and Other Specialized Orders

Bankruptcy proceedings, federal tax levies, child support orders, private student loan judgments, and certain other obligations are subject to specialized federal or state rules. The ordinary Georgia wage-garnishment limitation should not automatically be applied to every type of withholding order.

Employers should review the issuing authority's instructions and determine which federal and Georgia requirements apply before processing specialized withholding orders.

Federal Garnishment Limits Still Apply

Georgia employers must comply with applicable federal garnishment protections in addition to Georgia law. For ordinary consumer debts, the federal Consumer Credit Protection Act generally limits garnishment to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage.

Georgia's ordinary garnishment formula uses the same $217.50 weekly threshold associated with 30 times the federal minimum wage of $7.25 per hour.

Different federal limits apply to child support, certain tax obligations, bankruptcy, and other specified debts. Employers should identify the type of obligation before determining the amount that may legally be withheld.

Protection Against Discharge

Georgia Code § 18-4-5 prohibits an employer from discharging an employee because the employee's earnings have been subjected to garnishment for any one obligation, even when more than one summons of garnishment is served with respect to that obligation.

Federal law also generally prohibits an employer from discharging an employee because the employee's earnings have been garnished for any one indebtedness.

Employers should not retaliate against an employee because of a garnishment or alter the employee's normal compensation or pay schedule for the purpose of avoiding the garnishment.

Failure to File a Garnishee Answer

Georgia law provides significant consequences when a garnishee fails to file a required answer. If no claim or traverse is filed within 20 days after the garnishee's answer, funds paid into court may be released to the plaintiff, and the garnishee may be discharged from further liability with respect to the summons answered.

If money or property admitted to be subject to garnishment is not paid or delivered to the court, judgment may be entered against the garnishee for that money or property.

For continuing garnishments, failure to file a timely answer can result in a default judgment against the garnishee for the amount remaining due on the judgment.

When Employment Terminates

If the employment relationship terminates while a continuing garnishment is in effect, Georgia law requires the employer to report the termination in the garnishee answer and provide the applicable termination date.

An employer may also be permitted to file a final garnishee answer after the statutory requirements for reporting that no payments are owed have been satisfied.

Payroll should promptly update the garnishment record when an employee terminates and complete any final garnishee answer required by the continuing garnishment.

Important Employer Compliance Point

A Georgia wage garnishment should not be treated as a simple instruction to withhold a fixed percentage of an employee's paycheck. Payroll must identify the type of garnishment, calculate disposable earnings, apply the appropriate Georgia and federal limitations, determine whether the judgment involves a private student loan or support obligation, file timely garnishee answers, and send funds to the court as required.

For an ordinary Georgia garnishment, the maximum withholding is generally the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed $217.50 per week. When the judgment arises from a private student loan, the percentage limitation is generally 15%. Continuing garnishments require recurring garnishee answers and payments while the garnishment remains in effect.

Georgia Garnishment Records

Employers should maintain records of all garnishment orders, dates of service, employee notices, disposable-earnings calculations, amounts withheld, payments made, garnishee answers, and correspondence concerning the garnishment.

Accurate records are particularly important when an employee has multiple garnishments, a support garnishment, a private student loan garnishment, an exemption claim, or a court proceeding affecting the employer's withholding obligations.

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