Garnishment: an embellishment accompanying a prepared item
On food or drinks, a garnishment is a pleasant add-on. However, a court-ordered wage garnishment is an unwelcomed embellishment on top of an already difficult calculation for tax withholdings.
Child support, tax debt, alimony, student loan demands, and bankruptcy obligations are more common than you may think and more confusing than they need be.
After receiving an order to levy wages, garnishments are to be deducted from the following payroll, payable immediately and continue until a termination order has been issued. Additionally, employers are required to notify the court or government agency that issued the order if the employee quits or is terminated.
The amount to deduct depends on each wage order. Some are fixed amounts, others based on disposable income – which may fluctuate each payroll. The situation becomes increasingly tricky when there are multiple garnishments. The priority of garnishment depends on the date of notice and type of garnishment. Child support is usually given priority.
Wage garnishments cause additional paperwork for employers and – no surprise – penalties if done late or incorrectly. It takes time to learn how to set up your payroll process to accommodate your obligation as an employer.
Employ-Ease is responsible for complying with garnishments for our clients, we can do the same for your unwelcomed embellishments!
