How To Handle Payroll Wage Garnishments

About Payroll Garnishment Rules - And How To Handle Garnishments

What Is A Wage Garnishment?

According to the US Department of Labor, a wage garnishment is a legal procedure in which a person's earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.

Wage garnishments typically happen when a court orders that an employer to withhold a specific portion of an individual's paycheck and send it directly to the creditor or person to whom money is owed.

Like most laws, employers and financial institutions are required to comply with specific rules and regulations. Luckily, TrainingCenter provides training to help you comply properly.

Training For Handling Payroll Garnishments

Below are training courses for both HR departments and financial institutions for handling garnishments.

>>> For HR Departments: Garnishments 101: Processes For Handling Garnishments Properly

As with all of the federal and state laws, garnishment rules and regulations that must be followed to the letter - and with the constant threat of penalties for violating any one of them - it's no wonder why processing each and every garnishment is such a daunting task.

Therefore, understanding the correct process for handling garnishments, even before you might have to deal with one, is of the utmost importance, and one we'll help you conquer in this training session. By attending this informative training session, you will learn:

  • State and federal law regarding garnishmentsgarnishments training
  • What is the difference between a garnishment and a levy
  • How to identify and define the various types of garnishments and levies
  • What are the typical garnishments received by the payroll department and how should they be handled?
  • What is disposable income and the order of priorities when multiple garnishments are received
  • For multiple garnishments on the same worker, determining which gets priority
  • Helpful tips to assist in your garnishment processing
  • How to properly handle terminated employee garnishments
  • How to calculate the withholding and prioritize the order of distribution when an employee has more than one type of garnishment
  • Best practices for processing garnishments
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>>>For Financial Institutions: Dealing with Subpoenas, Summonses, Garnishments, Tax Levies

This webinar provides attendees with the best practices and red flags for dealing with the various legal documents served upon financial institutions. By attending, you will learn:garnishments training
  • Legal differences among subpoenas, summonses, levies, garnishments, writs of attachments and warrants
  • What your financial institution should know about the Right to Financial Privacy Act, the Financial Privacy Act, and similar laws and regulations
  • Verifying customer information when complying with subpoenas, garnishments and levies
  • Helpful resources to assist your financial institution when complying with these orders
  • Whether IRS tax levies will attach to special accounts, like individual retirement accounts, health savings accounts and escrow accounts
  • An overview of procedures for answering garnishments of federal benefit payments
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Other Payroll Garnishment Training Courses

Either select a recommended course below or use the search box to find other payroll garnishment training courses.

Featured Course: Paycheck Fundamentals Training & Certification Program

The Paycheck Fundamentals Training & Certification Program helps beginning and intermediate HR professionals learn the basic payroll requirements.

The Program includes plain-English descriptions of the various requirements, processes, and procedures, as well as numerous examples, administrative tips, and interactive Q&A to help provide valuable insight into compliance requirements. The Program also includes an optional test for those who wish to earn the "Certified Paycheck Fundamentals Administrator" designation. This Program also qualifies for eight hours of PHR and SPHR re-certification credits!

garnishments trainingBesides the basics, you will also learn to:
  • Identify, pay, and withhold taxes for employees
  • Handle deferred compensation, cafeteria plan, sick pay, and other compensation
  • Properly provide stock options, expense reimbursements, relocation, and other "expenses"
  • Follow the proper policies, procedures, and documentation requirements for garnishments and levies
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About Payroll Garnishments: Employer Garnishment Rules & Guidelines

Employer Guidelines For Handling Garnishments

Employers generally have to notify the debtor in writing that a wage garnishment is about to start before sending payments to the creditor. The wage garnishment then typically continues until the debts are paid off or otherwise resolved. Employers are required to provide employees with a copy of garnishment paperwork.

Is There A Limit To How Much Can Be Garnished?

The amount of pay subject to garnishment is based on an employee's "disposable earnings", which is the amount left after legally-required deductions are made. Employers should be aware that there are two general types of garnishments, one for child support and one for creditors (commonly referred to as "levies").
  • Re child support orders, the maximum amount that can be withheld runs between 50 (if the employee is supporting another spouse and/or children) and 65% (if the employee is not supporting another spouse and/or children and is at least 12 weeks in arrears in making support payments).
  • Re levies, many states apply the "25-30" rule, meaning.

    • The "25 Rule"
      The wage garnishment order cannot take more 25% of the employee's "disposable earnings"
    • The "30 Rule"
      The wage garnishment order can only take amounts over 30 times the federal minimum wage

    Employers in states using the "25-30" rule should note that the wage garnishment cannot exceed the lesser of the two options. Be sure to check the table above to help find the rules for the states in which your organization does business.

State-By-State Payroll Garnishment Training

Learn The Payroll Garnishment Rules For Your State

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 for child support, federal, state, or local levies, creditor garnishments, and student loans, with the largest amount of garnishments being for child support.

Employers should be aware or employer garnishment rules, that states have various garnishment laws, and there are often penalties for violating these laws. Don't be caught unaware! Read the state-specific information below and/or take one of our recommended garnishment training courses.

Employer Garnishment Rules:
State Laws For Garnishments And Levies
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Rhode Island
South Carolina
South Dakota
West Virginia

About Child Support Garnishments

All states are required to use the "Order/Notice To Withhold Income For Child Support" notice for Child
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