Wage Garnishments: Avoid Costly Penalties

 Wage Garnishment is a process where an employer withholds the earnings of an employee in order to pay his or her debt.  The debt could be something that the employee acquired due to child support, student loans or any unpaid fines.  The court notice to withhold a certain amount of money is sent to the employer, and
the employer is required to garnish those employee’s wages.

There are some rules and regulations that the employers have to follow otherwise they can be
severely penalized:

  • Employers are not allowed to discharge or release any employees because of any garnishments of wages.
  • Employers are allowed to take out up to 50% of disposable earnings for child support, bankruptcy or federal and state tax payments.  However, they can only
    withhold up to 25% for rest of the debt reasons.
  • The court notice says the time of the garnishment, so the employers can stop garnishing the wages after the time has passed.

Garnishing employee’s wages can get complicated for the employers when there is more than one garnishment to be paid.  Usually, the first garnishment order the employer receives gets paid first but there is an exception when there is a federal student loan garnishment.  Different types of garnishments have different withholding limits and employers can be severely fined for not properly adhering to the laws.

Garden State Payroll can help employers deal with the strenuous task of following the proper rules and regulations.  Along with calculating the garnishments accurately, GSP will make sure the wages are garnished at appropriate times. The employers would not have to worry about the garnishments, and they can focus on growing their businesses.

For more information about Wage Garnishments or any other payroll related tasks, contact Garden State Payroll.

Contact GSP:

Peter Johnson at Toll Free: 877-898-0415