How to Handle Wage Garnishments and Child Support
You have just received a court order or IRS levy demanding that you garnish the wages of one of your employees. Do you know what to do now?
A wage garnishment is any legal or equitable procedure where some portion of a person's earnings is withheld by an employer for the payment of a debt. Common types of withholdings include child support, court order, tax lien, and loan garnishments. Most wage garnishments are made by court order and an employer may receive a letter that requires the company to garnish the wages of an employee.
Employers must comply with a wage garnish request, and usually need to start garnishing wages and remitting payments as soon as the order is received. Wage garnishments are time-sensitive and failure to process the garnishment within the allotted time frame can lead to penalties.
Watch this video to learn more about the different types of wage garnishments and how to handle them. For a more detailed description of employer and employee responsibilities, download our e-book, 7 Questions Every Small Business That Hires Employees Will Have to Answer.