Getting a wage garnishment order can be unsettling, especially when it arrives with little warning and hard-to-follow language. But it’s not a reflection on you. Garnishment is simply a legal request to withhold part of an employee’s paycheck to repay a debt like unpaid taxes, child support, or a court ruling.
As the employer, your job is to follow the order accurately and on time. This guide walks you through what a wage garnishment is, what steps to take, and how to handle the process with confidence while respecting your employee’s privacy.
What does a wage garnishment order mean?
A wage garnishment order tells you to deduct a specific portion of your employee’s wages and send it to the right agency. The debt could be from a variety of sources, such as overdue taxes, missed child support, or a defaulted student loan.
As the employer, you are legally obligated to comply. Failing to do so could result in penalties. The order will outline the exact amount to withhold and explain where to send the payment. You are responsible for carrying out those instructions correctly.
Remitting Garnishments
Once you’ve withheld the required amount, make sure the payment is sent on time. Each order will include a due date and payment instructions. Use the method provided, whether that’s mailing a check or submitting payment online, and keep a record of each transaction for your files. On-time remittance protects your business from liability and helps your employee stay on track with their obligations.
Who needs to be involved when a garnishment order arrives?
You don’t need to handle this on your own. It helps to bring in the right people to make sure nothing is missed.
Involve your payroll team so deductions can start immediately. Bring in HR to ensure confidentiality and to support the employee appropriately. If the numbers or legal details are confusing, consult with your accountant or payroll service provider. When something looks off or unclear, legal counsel may be needed to help interpret the order.
Only share the information with those who need to know. Keeping it confidential is important both for legal reasons and to protect your employee’s dignity.
Discussing Garnishment with Your Employee
Even though the agency is supposed to notify your employee, it’s helpful to follow up with a private and respectful conversation. Schedule a one-on-one meeting where you can explain that the garnishment is a legal matter, not a disciplinary one. Let them know their job is secure and offer a copy of the order if appropriate.
You don’t have to provide advice about the debt itself, but you can point them toward the agency or other helpful resources. Offering support during that conversation can ease some of the stress they may be feeling.
What do I withhold?
You’ll need to calculate the exact amount based on the garnishment order. Start by determining the employee’s disposable earnings. That’s their income after taxes and Social Security but before deductions like health insurance.
Apply the amount or percentage listed in the order. Double-check the legal limits to make sure you’re not withholding more than allowed. If your employee receives more than one garnishment order, follow the correct priority—child support and tax debts usually come first.
How much can be taken from an employee’s pay?
Federal law limits the amount that can be garnished. Typically, you can withhold up to 25 percent of the employee’s disposable income or the amount that exceeds 30 times the federal minimum wage, whichever is less.
Some debts have different limits. Child support and tax-related garnishments might require higher deductions. State laws can also place stricter limits or add different requirements, so it’s important to review your local rules or talk with your payroll expert.
What records do I need to keep?
Treat garnishment records like you would any sensitive payroll document. Keep the original garnishment order, documentation of all payments sent, and notes or emails related to the employee or agency.
Hold onto these records for at least three years after the garnishment ends. Some states may require a longer retention period. Make sure everything is stored securely, just like other confidential payroll data.
Handling Changes
Garnishments often last for a while, not just a few pay periods. Keep making deductions until you receive official notice to stop. If the employee leaves your company, notify the agency promptly, usually within a few business days.
When updates to the garnishment order arrive, adjust your payroll system right away and inform the employee about the change. Clear communication ensures nothing gets missed or misapplied.
What if I make a mistake?
Errors happen but correcting them quickly can prevent bigger problems. Fix the issue in your payroll records, update any affected payments, and notify both the agency and the employee. Document what happened and how it was resolved.
Avoid guessing. When something is unclear, reach out to the agency or a payroll expert. Getting the right answer is always better than hoping you did it correctly.
The Bottom Line
Wage garnishments are not personal, and they’re not a reflection on how well your business is run. They’re just part of managing payroll. What matters is how you respond. Acting quickly, keeping the process professional, and treating your employee with respect goes a long way.
Strong payroll practices make it easier to handle garnishments without stress. That includes using reliable systems, keeping records up to date, and asking for help when needed. Whether this is your first garnishment order or your tenth, having a clear plan helps you stay in control and support your team.
