Wage Garnishments

Wage Garnishment is a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt. Employers begin garnishing wages as soon as they received an order to do so from a court or agency.  You may have wages garnished without a court order if you owe money to the federal government. This may be the case when you owe taxes to the Internal Revenue Service (IRS).

Common reasons for wage garnishments 

  1. Unpaid debts government claims
  2. Government claims 

Types of wage garnishment 

  • Creditor garnishments
  • Student loans
  • Tax levies
  • Voluntary wage assignments 

When to stop garnishing employee wages

  1. The employee’s debt is fulfilled
  2. the garnishment order is resolved
  3. the garnishment period ends 

Source: ADP – automatic data processing