At PBIPayroll, we understand the process and can help you manage wage garnishment notices and payments. We can process garnishments along with the payroll for an array of payment types, including child support payments, tax levies, bankruptcies, etc.
PBIPayroll would like to offer four key points about garnishments to help you avoid a potentially costly payroll mistake.
- As an employer, you are responsible for accurately calculating the payroll deductions for wage garnishments. In many states, employers can be held liable for the full judgment amount against employees if they fail to respond to a court order, as well as for withholding inaccurate amounts from pay. Outsourcing payroll to a reliable provider is recommended for this and many other reasons. PBIPayroll offers a garnishment feature that accurately calculates garnishments, creates checks and delivers them to the appropriate agency.
- Laws regulating garnishments vary from state to state. In addition to being governed by the Federal Consumer Credit Protection Act, garnishments are subject to the state laws where the judgment is registered. This means employers often must be familiar with laws in the state in which they do business as well as the state issuing the judgment.
- You are prohibited from discriminating against an employee based on a wage garnishment. Discrimination of this type is prohibited by federal law and includes termination of an employee whose earnings are subject to garnishment for any one debt. The law does not, however, protect employees who are subject to multiple garnishments. Varying state garnishment laws also apply, further complicating matters.
- Federal law limits the amount that can be garnished per workweek or pay period. At PBIPayroll, we stay abreast of any changes to ensure employers are staying within the limits permitted while abiding by the garnishment orders.
Source: US Department of Labor
Garnishment law is complicated and errors can be costly. With PBIPayroll, you can be sure you have procedures in place to ensure garnishments are handled properly throughout the process.