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Training For Wisconsin Garnishment Law Requirements

What Is 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 Wisconsin Garnishment Laws

Wisconsin permits wage garnishment for certain debts after a creditor obtains the required judgment or other legally enforceable order and follows the applicable legal procedures. Employers that receive a valid garnishment order must review the order, determine the employee's disposable earnings, calculate the proper withholding amount, complete the required employer response, and remit withheld funds as directed.

Wisconsin wage-garnishment procedures are governed by Wisconsin statutes, court rules, and applicable federal law. Different requirements can apply to ordinary consumer debts, child support, federal student loans, taxes, and other obligations.

For ordinary consumer debts, Wisconsin generally limits wage garnishment to the lesser of 20% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage for the applicable pay period.

At A Glance

• Ordinary consumer debt: Wage garnishment generally requires a judgment and a properly issued and served earnings garnishment
• Maximum percentage: Generally the lesser of 20% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage for the applicable pay period
• Low-wage protection: Wisconsin and federal law protect a portion of lower earnings from ordinary garnishment
• Child support: Subject to separate Wisconsin and federal income-withholding rules and limits
• Employer answer deadline: Generally within 7 days after service of the garnishment, subject to the applicable court documents
• Administrative fee: Wisconsin generally permits an employer to retain a statutory fee for processing certain earnings garnishments
• Priority: Child support and certain other legally prioritized obligations may take precedence over ordinary judgment garnishments
• Ordinary garnishment form: Earnings Garnishment and Garnishee's Answer
• Primary state authority: Wisconsin Statutes Chapter 812
• Federal limitations: Federal law applies to child support, federal tax levies, federal student loans, and other federally authorized wage garnishments

Wisconsin Wage Garnishment Laws

What Is Wage Garnishment in Wisconsin?

Wage garnishment is a legal process through which an employer is required to withhold part of an employee's earnings and send the money to the judgment creditor or other authorized recipient.

In Wisconsin, an ordinary wage garnishment generally begins when a creditor obtains a judgment and serves the employer with the required earnings garnishment documents. The employer becomes the garnishee and must comply with the applicable statutory requirements.

Can Creditors Garnish Wages in Wisconsin?

Yes. Wisconsin permits wage garnishment for qualifying debts after the creditor follows the required legal process.

An employer should not begin withholding wages based solely on an informal demand from a creditor or collection agency. Payroll should verify that the employer has received a valid court-issued earnings garnishment or another legally effective income-withholding order.

Can a Judgment Creditor Garnish Wages in Wisconsin?

Yes. A judgment creditor may generally pursue wage garnishment to collect an unpaid judgment from an employee's earnings.

Once properly served, the employer must comply with the garnishment unless a valid objection, exemption, release, modification, or other court order changes the employer's obligations.

Can Credit Card Companies Garnish Wages in Wisconsin?

Yes. A credit card company, debt buyer, or other creditor that obtains a valid judgment may generally pursue wage garnishment through Wisconsin's collection procedures.

Can Medical Bills Be Garnished From Wages in Wisconsin?

Yes. An unpaid medical debt can potentially result in wage garnishment if the creditor obtains a judgment and follows Wisconsin's garnishment procedures.

Wisconsin Garnishment Limits

What Is the Maximum Wage Garnishment Percentage in Wisconsin?

For ordinary consumer debts, Wisconsin generally limits wage garnishment to the lesser of 20% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage for the applicable pay period.

This means payroll should perform both calculations before determining the amount available for garnishment.

Other types of garnishment, including child support and certain federal obligations, can be subject to different limitations.

What Is Disposable Earnings for a Wisconsin Garnishment?

Disposable earnings generally means the amount of compensation remaining after deductions required by law, including federal, state, and local taxes and Social Security and Medicare taxes.

Voluntary deductions generally are not treated the same way as legally required deductions when determining disposable earnings for purposes of the federal garnishment limitation.

What Is the Wisconsin Low-Wage Garnishment Protection?

For ordinary consumer debt, Wisconsin's earnings-garnishment calculation protects disposable earnings up to the statutory threshold. The amount available for garnishment is generally limited to the lesser of the applicable percentage or the amount exceeding the protected earnings level.

Federal law also provides protections for lower earnings. Payroll should apply the state and federal rule that provides the greater protection when required.

What Is the Child Support Garnishment Limit in Wisconsin?

Child-support income withholding is governed by separate Wisconsin and federal requirements. The applicable maximum generally follows the federal Consumer Credit Protection Act and the specific income-withholding order.

Depending on the employee's circumstances and whether the support obligation is more than 12 weeks delinquent, federal law generally permits withholding of up to 50%, 55%, 60%, or 65% of disposable earnings.

Payroll should follow the specific income-withholding order and applicable federal requirements rather than automatically applying the ordinary consumer-debt limitation.

What Is the Federal Student Loan Garnishment Limit in Wisconsin?

Federal law permits administrative wage garnishment for qualifying federal student-loan debt. The general federal limit is up to 15% of disposable pay, subject to applicable federal restrictions.

Wisconsin employers receiving a federal student-loan administrative wage-garnishment order should follow the federal order and applicable federal procedures.

What Is the Federal Tax Levy Limit in Wisconsin?

Federal tax levies are governed by federal law and do not use the ordinary consumer-debt garnishment limitation.

When an employer receives an IRS levy, payroll should follow the levy instructions and applicable federal exemptions and calculations.

Wisconsin Employer Garnishment Requirements

What Should a Wisconsin Employer Do After Receiving a Garnishment?

An employer should promptly review the garnishment documents and verify the employee information, issuing court, case number, service date, withholding instructions, payment instructions, and employer response deadline.

Payroll should determine the employee's disposable earnings and calculate the amount that may legally be withheld.

Employers should also determine whether other garnishments, tax levies, child-support orders, or other legally prioritized withholding orders are already active.

When Must a Wisconsin Employer Respond to a Wage Garnishment?

For an ordinary Wisconsin earnings garnishment, the employer generally must file the required Garnishee's Answer within 7 days after service, subject to the specific garnishment documents and applicable court requirements.

Payroll should use the deadline stated in the actual garnishment documents and calendar it immediately because different types of withholding can have different response requirements.

When Does a Wisconsin Garnishment Begin?

A garnishment generally becomes effective when the required earnings garnishment documents are properly issued and served on the employer, subject to the timing requirements stated in the documents.

Payroll should carefully review the service date, effective date, and withholding instructions rather than assuming that withholding automatically begins with the next regular payroll cycle.

What Happens If an Employer Fails to Respond?

A garnishee that fails to properly answer a valid earnings garnishment can face court proceedings and potential liability for amounts that should have been withheld.

Employers should therefore route garnishment documents promptly to the payroll, legal, human resources, or compliance department responsible for processing wage attachments.

When Must a Wisconsin Employer Remit Garnished Wages?

The employer should follow the payment instructions contained in the garnishment documents and applicable Wisconsin procedures.

Employers should maintain records of each withholding and payment until the garnishment is released, satisfied, or otherwise terminated.

Wisconsin Garnishment Forms

What Form Does a Wisconsin Employer Use?

Ordinary Wisconsin earnings garnishments generally use an Earnings Garnishment together with the required Garnishee's Answer.

The exact form and accompanying documents can depend on the type of garnishment. Child-support withholding uses separate income-withholding procedures, while federal student-loan garnishments and federal tax levies use federal documents.

What Information Should Employers Review on a Wisconsin Garnishment?

• Employee name
• Employee identifying information
• Case number
• Issuing court
• Judgment creditor
• Judgment debtor
• Date the garnishment was served
• Effective date
• Amount of the judgment
• Applicable withholding limitation
• Employee's disposable earnings
• Existing wage garnishments
• Child-support or tax withholding orders
• Employer response deadline
• Payment instructions
• Release or termination instructions

Wisconsin Garnishment Administrative Fees and Cost Recovery

Can a Wisconsin Employer Charge a Garnishment Processing Fee?

Yes. Wisconsin generally permits an employer to retain a statutory fee for processing certain earnings garnishments.

For qualifying earnings garnishments, Wisconsin generally permits the employer to retain a $5 processing fee for each payment period in which wages are withheld, subject to applicable statutory requirements.

Payroll should verify that the particular garnishment qualifies for the fee and should account for the fee separately from the amount being remitted to the creditor.

Can an Employer Recover Garnishment Processing Costs?

Yes. The Wisconsin statutory employer fee provides a mechanism for recovering a portion of the administrative cost associated with processing a qualifying earnings garnishment.

Payroll should verify the applicable statutory authority before deducting or retaining the fee and should ensure that the deduction does not violate applicable withholding limitations.

Can an Employer Charge a Fee for Child Support Withholding?

Child-support income withholding is governed by separate Wisconsin and federal requirements. Employers should review the applicable income-withholding order and Wisconsin rules before applying an administrative fee.

Wisconsin Garnishment Priority Rules

Which Garnishment Has Priority in Wisconsin?

Priority depends on the type of withholding and the applicable state and federal law.

Child-support income withholding generally receives priority over ordinary consumer-debt garnishments under federal and state requirements.

Federal tax levies and other federally authorized wage attachments are also subject to federal priority rules.

What Happens When an Employee Has Multiple Garnishments?

Employers should identify all active withholding orders before determining how much of the employee's earnings is available for each obligation.

Payroll should not simply process multiple garnishments in the order in which they arrive. Child support and other legally prioritized obligations may take precedence over ordinary judgment garnishments.

Wisconsin Garnishment Exemptions

Are Wages Protected From Garnishment in Wisconsin?

Yes. Wisconsin employees are protected by state and federal limits on ordinary wage garnishments and applicable exemptions.

For ordinary consumer debt, Wisconsin generally limits the amount available for garnishment to the lesser of 20% of disposable earnings or the amount exceeding the applicable protected earnings threshold.

Can an Employee Contest a Wisconsin Wage Garnishment?

Yes. An employee may have grounds to object to a garnishment or assert an applicable exemption or defense.

Employers should not independently determine whether an employee's objection is legally sufficient. Payroll should follow the garnishment order and any subsequent court order modifying, suspending, or releasing the garnishment.

Wisconsin Garnishment Compliance Checklist

Payroll professionals can use the following checklist when processing a Wisconsin wage garnishment:

• Confirm that the earnings garnishment was properly served
• Verify the employee named in the garnishment
• Identify the issuing court
• Review the judgment creditor and judgment debtor
• Determine the type of garnishment
• Review the date of service
• Calendar the applicable employer response deadline
• Calculate disposable earnings
• Calculate 20% of disposable earnings
• Calculate the amount exceeding 30 times the federal minimum wage for the applicable pay period
• Apply the lower amount when required for an ordinary garnishment
• Apply applicable federal and Wisconsin exemptions
• Check for existing wage garnishments and higher-priority withholding orders
• Determine whether child support or another federally protected withholding applies
• Complete the required Garnishee's Answer
• Begin withholding according to the earnings garnishment
• Remit withheld wages according to the required payment instructions
• Apply the statutory employer processing fee only when authorized
• Maintain garnishment records
• Monitor for amended orders, releases, or satisfaction of the judgment

Common Garnishment Errors In Wisconsin To Avoid

Automatically Withholding 20% of Disposable Earnings

Wisconsin's ordinary garnishment calculation requires comparing 20% of disposable earnings with the amount by which disposable earnings exceed the applicable protected earnings threshold. Payroll should perform both calculations rather than automatically withholding 20%.

Failing to Apply Low-Wage Protections

Wisconsin law protects a portion of lower earnings from ordinary garnishment. Payroll should calculate the protected amount before determining the withholding.

Missing the Employer Answer Deadline

Wisconsin generally requires the employer to provide the required Garnishee's Answer within 7 days after service of an ordinary earnings garnishment. Payroll should calendar the deadline immediately.

Using the Ordinary Garnishment Formula for Child Support

Child-support withholding is subject to separate federal and Wisconsin requirements. Employers should follow the income-withholding order rather than automatically applying the ordinary consumer-debt calculation.

Failing to Apply Garnishment Priority Rules

Child support, tax levies, and other legally prioritized obligations can affect how multiple withholding orders are processed. Payroll should review all active orders before calculating available wages.

Charging an Incorrect Processing Fee

Wisconsin permits an employer processing fee for qualifying earnings garnishments, but payroll should verify the applicable amount and requirements before retaining the fee.

Ignoring Existing Garnishments

Employers should check payroll records for existing garnishments, child-support orders, tax levies, and other withholding obligations before implementing a new order.

Failing to Remit Withheld Wages Correctly

Employers should follow the payment instructions contained in the garnishment documents and maintain documentation showing when and where each payment was sent.

Stopping a Garnishment Without Authorization

Payroll should continue withholding until the employer receives a legally effective release, termination, modification, or other instruction ending the garnishment.

Wisconsin Garnishment Compliance Tips for Employers

Wisconsin employers should establish a consistent process for handling wage garnishments. Because the employer response deadline can be short, garnishment documents should be routed to payroll or the appropriate compliance department immediately.

Payroll should calculate disposable earnings carefully and perform the required Wisconsin and federal withholding calculations before determining the amount to deduct.

Employers should distinguish ordinary judgment garnishments from child-support income withholding, federal student-loan garnishments, and federal tax levies because each type of withholding can have different limits, forms, deadlines, priority rules, and payment procedures.

Payroll departments should maintain copies of the earnings garnishment, Garnishee's Answer, withholding calculations, payment records, correspondence, amended orders, and releases.

Final Takeaway

Wisconsin permits wage garnishment for qualifying judgments, but employers must follow specific court procedures and withholding limitations.

For ordinary consumer debt, Wisconsin generally limits garnishment to the lesser of 20% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage for the applicable pay period.

Employers should complete the required Garnishee's Answer within the applicable deadline, apply priority rules, calculate withholding correctly, and use the authorized employer processing fee only when permitted.

Child support, federal student loans, federal tax levies, and other specialized obligations can be subject to different rules. Employers should identify the type of withholding before calculating deductions or applying a processing fee.

A documented garnishment process can help Wisconsin employers meet response deadlines, apply the correct withholding limits, recognize priority orders, remit payments correctly, and avoid costly payroll errors.

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Wisconsin Garnishment FAQs

Can a Creditor Garnish Wages in Wisconsin?

Yes. A creditor can generally pursue wage garnishment after obtaining the required judgment and following Wisconsin's garnishment procedures.

What Is the Maximum Wage Garnishment in Wisconsin?

For ordinary consumer debt, the general limitation is the lesser of 20% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum hourly wage for the applicable pay period.

Can Credit Card Companies Garnish Wages in Wisconsin?

Yes. A creditor that obtains a valid judgment may generally pursue wage garnishment through Wisconsin's collection procedures.

Can Medical Bills Be Garnished From Wages in Wisconsin?

Yes. A medical creditor may potentially obtain a judgment and pursue wage garnishment if the applicable legal requirements are satisfied.

Can Child Support Be Garnished From Wages in Wisconsin?

Yes. Wisconsin permits income withholding for child support, subject to state and federal requirements.

Can Federal Student Loans Be Garnished in Wisconsin?

Yes. Federal law permits administrative wage garnishment for qualifying federal student-loan debt, generally up to 15% of disposable pay subject to federal requirements.

Can the IRS Garnish Wages in Wisconsin?

Yes. Federal tax levies can require Wisconsin employers to withhold wages under federal law.

What Is the Wisconsin Garnishment Form for Employers?

Ordinary wage garnishments generally use an Earnings Garnishment together with the required Garnishee's Answer.

What Is the Wisconsin Employer Garnishment Answer Deadline?

For an ordinary earnings garnishment, the employer generally must provide the required Garnishee's Answer within 7 days after service, subject to the specific documents and applicable court requirements.

Can a Wisconsin Employer Charge a Garnishment Fee?

Yes. Wisconsin generally permits a statutory processing fee for qualifying earnings garnishments. Payroll should verify the applicable amount and requirements before retaining the fee.

What Happens If an Employer Ignores a Wisconsin Garnishment Order?

An employer that fails to properly respond or withhold pursuant to a valid garnishment may face court action and potential liability. Garnishment documents should be reviewed promptly by the appropriate payroll or compliance personnel.