When one of your employees is ordered by a court or IRS levy to have their wages used toward a legal claim such as child support, court orders, and tax liens, the responsibility is on you to handle these payments as part of your payroll process.
Complicating matters, the regulations surrounding garnishment payments vary by state. For example, the federal government allows a maximum of 25 percent of an employee's wages to be garnished, while some states enforce lower amounts, and others limit what debts can be considered for garnishment.
To make certain that you're processing garnishments within the law — and protected against undue liability and lawsuits — Paychex wage garnishment services calculates garnishment wages, makes deductions, and ensures the proper agency is paid by the required method, either paper check or electronic funds transfer.
Paychex wage garnishments simplify this tedious chore and can protect your business against undue liability and lawsuits.