Garnishments

Garnishments are involuntary deductions, meaning they are mandatory and usually levied by a Court, State, or Federal Agency. Neither employees nor employers have control over these deductions.

When a Garnishment is required, the Garnishment amount is automatically deducted from employee paychecks to pay for outstanding debts to the government, state agency, or private organization.

When Are Garnishments Required?

Both private and government organizations can garnish an employee's wages to collect on a variety of unpaid debts. Examples of unpaid debts that can be collected through garnishments include:

• Child Support
• Federal Tax Levy
• State Tax Levy
• Creditor Garnishment
• Spousal Support
• Defaulted Student Loan

Federal and State tax agencies will levy employee wages for unpaid and outstanding tax debts. For example, from a failure to file a return or correctly report income on a return.

Submitting Payments

Generally, we will create live checks for garnishments that are provided with your payroll package for you to sign, seal, stamp, and send to the appropriate agency.

Alternatively, in some situations, we can electronically send the deduction amount directly to the agency via ACH files (provided we have routing and account information for the agency). You can set this up in the agency configuration.

How To Set Up Garnishments

Garnishments can be easily set up and managed for your employees from within your HRIS portal. All you have to do to set up a garnishment is:

1. Set up the agency (if not already created)
2. Assign the deduction and agency to the appropriate employee