What is wage garnishment in US payroll law?

Wage garnishment is a legal procedure in which a portion of an employee's earnings is withheld by their employer based on a court order. This is typically done to fulfil a debt or legal obligation.

What are some common examples of reasons for wage garnishment?

Common reasons for wage garnishment include child support payments, unpaid taxes, credit card debt, defaulted student loans, medical bills, and outstanding court fees.

How are payroll wage garnishments issued?

Employers receive garnish orders and must respond to them. They may need to provide proof of the employee's employment and report their earnings. The court may request additional information before initiating garnishment. Only an employee's disposable income can be garnished.

Is there a limit to how much can be garnished from an employee's wages?

Federal law sets limits on the amount that can be garnished from an employee's wages. The amount is determined based on the employee's disposable earnings, which is what remains after deductions like taxes, social security, and Medicare.

What types of wages can be garnished?

Most types of wages can be garnished, including hourly wages, salaries, bonuses, and commissions.