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Training For Missouri 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.

Employer Guidelines For Handling Garnishments

Employers generally have to notify the debtor in writing that a wage garnishment is about to start before making a garnishment and 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.

Missouri Garnishment Law Requirements

Missouri employers that receive a wage garnishment must comply with Missouri garnishment laws as well as applicable federal requirements. For most ordinary creditor garnishments, Missouri generally limits the amount that may be withheld from an employee's disposable earnings to 10% of disposable earnings, although a higher limit may apply to certain employees and types of debts.

Missouri Wage Garnishment Overview

A Missouri wage garnishment is a legal process through which a creditor may require an employer to withhold part of an employee's earnings to satisfy a debt. Missouri garnishment procedures are primarily governed by Missouri Revised Statutes Chapter 525.

Wage garnishment generally occurs after a creditor obtains a judgment against an employee and obtains a garnishment order requiring the employer to withhold wages.

How Much Can Be Garnished in Missouri?

For most ordinary creditor garnishments, Missouri generally limits the amount that may be withheld from an employee's disposable earnings to 10%.

For certain employees, Missouri law permits a garnishment of up to 25% of disposable earnings. This higher limit generally applies when the employee is not the head of a family and does not have dependents.

Missouri law also provides additional protections for employees who are considered heads of families. Payroll should review the employee's circumstances, the garnishment order, and applicable Missouri and federal requirements before determining the amount to withhold.

Missouri Disposable Earnings

Disposable earnings generally mean the portion of an employee's earnings remaining after deductions required by law have been withheld.

Employers should calculate disposable earnings before applying the applicable garnishment limitation. A garnishment should not simply be calculated as a percentage of gross wages.

Missouri Wage Garnishment Process

A Missouri wage garnishment generally begins after a creditor obtains a judgment and initiates garnishment proceedings against the employee's earnings.

When an employer receives a Missouri wage garnishment, payroll should:

• Record the date the garnishment is received
• Review the garnishment order, judgment, and instructions
• Verify the employee's identity and employment status
• Determine the employee's gross earnings and disposable earnings
• Determine the applicable Missouri garnishment percentage
• Review existing garnishments and support withholding orders
• Determine whether an exemption or special rule applies
• Complete and return any required employer response
• Withhold wages according to the garnishment order
• Remit withheld amounts according to the applicable instructions
• Continue withholding while the order remains effective
• Maintain records of calculations, withholding, and payments

Missouri Garnishment Orders

A Missouri employer that receives a valid garnishment becomes responsible for withholding and remitting the portion of the employee's earnings that is subject to the order.

Missouri garnishment procedures require the garnishee employer to respond to the garnishment and provide information concerning property or earnings belonging to the judgment debtor that are in the employer's possession or control.

Employers should respond accurately and within the deadline stated in the garnishment documents. Failure to properly respond can result in additional legal consequences for the garnishee.

Missouri Garnishment Exemptions

Missouri law provides exemptions that may protect certain property and income from execution or garnishment. Missouri also provides special protection for certain earnings of individuals who qualify as heads of families.

Federal law may provide additional protections depending on the type of debt and source of the funds.

Employers should not independently determine whether an employee's wages are exempt unless the applicable legal process requires the employer to make that determination. Payroll should follow the garnishment order and any subsequent court instructions.

Missouri Child Support Garnishment

Child support and other family-support obligations are subject to special Missouri and federal requirements and generally receive priority over ordinary creditor garnishments.

Federal law generally permits withholding up to 50% of disposable earnings when the employee is supporting a spouse or dependent child other than the person receiving support, or up to 60% when the employee is not supporting another spouse or dependent child. An additional 5% may generally be withheld when the support obligation is more than 12 weeks in arrears.

Missouri employers processing an income withholding order for child support should follow the specific order and applicable Missouri and federal requirements rather than applying the ordinary creditor-garnishment percentage.

Missouri Tax Garnishments

Federal and Missouri tax collection actions may be subject to specialized levy procedures that differ from an ordinary creditor garnishment.

Employers receiving a federal or Missouri tax levy should follow the instructions provided by the applicable taxing authority rather than automatically applying the ordinary Missouri wage-garnishment calculation.

Missouri Student Loan Garnishment

Defaulted federal student loans may be subject to administrative wage garnishment under federal law. Federal administrative wage garnishment can generally require withholding of up to 15% of disposable pay for qualifying defaulted federal student loans.

Employers receiving a federal student loan administrative wage garnishment should follow the instructions from the issuing federal agency or guaranty agency.

Missouri Bankruptcy Garnishment

Bankruptcy-related wage withholding can be subject to federal bankruptcy law and may operate differently from an ordinary Missouri judgment garnishment.

Employers receiving a bankruptcy-related wage order should review the order carefully and follow the applicable federal and Missouri requirements.

Multiple Garnishments in Missouri

Missouri employers may receive multiple garnishment and income withholding orders affecting the same employee. Payroll should review each order to determine its type, priority, and applicable withholding limitation.

Child support and other legally prioritized withholding orders may take precedence over ordinary creditor garnishments. Employers should maintain a complete record of all garnishments affecting an employee and should not assume that multiple orders permit withholding beyond the applicable legal maximum.

Federal Garnishment Limits

Missouri employers must comply with the federal Consumer Credit Protection Act in addition to Missouri garnishment law. For ordinary consumer debts, federal law 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.

Missouri's state limits can be more protective than the federal limit for certain employees. Employers should apply the more restrictive applicable limitation when required.

Different federal limits apply to child support, tax debts, federal student loans, bankruptcy, and certain other obligations. Payroll should identify the type of debt before calculating the withholding.

Protection From Discharge

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

Employers should therefore avoid adverse employment action based solely on an employee's garnishment status.

When to Stop a Missouri Wage Garnishment

Employers should continue withholding while the garnishment remains legally effective and wages remain subject to the order.

Withholding should stop when the judgment or obligation has been satisfied or when the garnishment has been released, terminated, or modified by the court or other authorized authority.

Payroll should not stop a garnishment solely because an employee states that the debt has been paid. Appropriate documentation should be obtained before terminating or changing the withholding.

Missouri Garnishment Recordkeeping

Employers should maintain records of:

• Garnishment orders
• Dates of service
• Court judgments and related documents
• Employer responses to garnishment orders
• Employee earnings
• Disposable-earnings calculations
• Amounts withheld
• Amounts remitted
• Support withholding orders
• Correspondence concerning the garnishment
• Documentation terminating or modifying the garnishment

Accurate records are especially important when an employee has multiple garnishments, support obligations, tax levies, bankruptcy orders, or changes to the underlying court order.

Important Missouri Garnishment Compliance Points

Missouri wage garnishment compliance requires more than applying a fixed percentage to an employee's paycheck. Payroll must identify the type of obligation, calculate disposable earnings, determine the applicable Missouri garnishment limit, consider exemptions and priority rules, respond to the garnishment order, and remit withheld wages according to the applicable instructions.

For many ordinary Missouri creditor garnishments, the state generally limits withholding to 10% of disposable earnings. A higher 25% limit can apply in certain circumstances, including when the employee is not considered the head of a family and has no dependents. Special rules apply to child support, taxes, student loans, bankruptcy, and other obligations.

Missouri Garnishment Law Changes

Missouri garnishment laws and procedures can change through legislation, court decisions, and administrative requirements. Employers should periodically review current Missouri law and the specific garnishment documents they receive to ensure that payroll calculations and procedures remain compliant.

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