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Wage Garnishment
Wage Garnishment
Question:
We recently received a court-ordered wage garnishment on one of our employees. This employee is already having his wages garnished. Do we deduct for both? If we do, he won’t have anything left?
Answer:
Both federal and state law place limits on the amount of money that may be withheld from an employee’s wages for the payment of a debt ($154.50 for federal, $85 for state.) Because the federal formula differs from the state formula, however, it is important to remember the overriding principle that the stricter limit always prevails.
Payroll deductions required by law have priority over all other wage deductions. A support order has priority over income executions and wage assignments. Income executions and wage assignments have priority over voluntary payroll deductions. An employer must honor wage assignments and income executions in the order in which they are served upon the Sheriff. The employer must satisfy the assignment or execution served first before making a payment on a subsequent assignment or execution.
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