A court-ordered or government-mandated payroll deduction to satisfy an employee\'s debt. Federal law (Title III CCPA) limits most garnishments to 25% of disposable earnings and sets priority rules when multiple garnishments apply.
Why Wage Garnishment matters for employers
When multiple garnishments apply to the same employee, federal law establishes priority: tax levies and child support orders generally take priority over creditor garnishments. Some states impose their own priority rules. The employer is responsible for calculating the correct withholding amount each pay period, remitting to the correct agency or court, and notifying the employee as required by state law.
Employers cannot retaliate against or terminate employees due to a wage garnishment for any single debt under Title III CCPA. Termination triggered by garnishment for two or more separate debts is not protected by the federal law, though some states provide broader protection. BEG manages garnishment administration -- tracking orders, calculating withholdings, and remitting payments -- as part of managed payroll.
How BEG handles Wage Garnishment for clients
BEG Managed Payroll handles Wage Garnishment as part of a fully managed payroll service at $25-$45 per employee per month. Clients do not need to track compliance rules, filing deadlines, or calculation methods related to Wage Garnishment on their own. Everything is included. Learn about BEG Managed Payroll.
Frequently asked questions
Do employers have to manage Wage Garnishment themselves?
No. A managed payroll provider handles Wage Garnishment as part of full-service payroll. BEG manages this for clients at $25-$45 PEPM with no system migration required.
What happens if Wage Garnishment is handled incorrectly?
Errors related to Wage Garnishment can trigger IRS penalties, state agency assessments, or employee disputes. Catching and correcting errors before filing is far less costly than after-the-fact corrections.
How does BEG handle Wage Garnishment for managed payroll clients?
BEG tracks, calculates, and remits everything related to Wage Garnishment as part of fully managed payroll. Clients do not need to monitor compliance -- that is included in the service at $25-$45 PEPM.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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