Typically, the wage garnishment process begins when someone owes taxes to the IRS. Wage garnishments are also commonly set up through a court order after two parties settle alimony or child support cases. Wage garnishments ensure that the party owed money gets his or her due in a timely manner, but for the person whose wages are garnished, it can mean a very small pay check. Preparing your business' employees for wage garnishment can be easy with the right garnishment resources.
Rely on three areas of expertise to determine how your HR department handles the garnishment of wages:
1. Local statutes and government compliance guides on garnishment of wages;
2. Wage garnishment calculation tools and simple documents; and
3. Professional payroll specialists who can handle garnishment wages for you.
Action Steps
The best contacts and resources to help you get it done
Let the U.S. Department of Labor help you understand wage garnishment laws
The first step in knowing how to protect your business and your employees in IRS wage garnishment is to go right to the source with updated information via the U.S. Government. You can count on the Labor Department's website for the best and most current information.
I recommend: The website of the
U.S. Department of Labor explains protection available for those subject to the wage garnishment process. For a state-by-state listing of interest rates and statutes of limitations for debt wage garnishment, go to
BCSAlliance.com.
Turn to free online resources for do-it-yourself garnishment of wages
You can find several free online resources for setting up the most simple policies. Many companies who offer software for managing IRS wage garnishment also feature free trials. The software is usually affordable but, if in the end you find that it is not, knowing a little about the process via free software trials can get you started.
I recommend: Companies like
Business Legal Reports and
HR.com can help you find immediate resources to help your business manage payroll for employees subject to federal wage garnishment.
Trust big name experts in the wage garnishment process if you can afford them
Payroll or HR experts will have a staff especially devoted to handling accounts subject to garnishment wages. The expert's job is to know the state-specific laws and how to implement them -- which means they'll pay the price if they don't get it right.
I recommend: ADP Resource and
AmCheck, both providing years of service in the payroll industry, can take the hassle out of calculating with full-service payroll solutions.
Tips & Tactics
Helpful advice for making the most of this Guide
- A writ of garnishment has completely different implications than wage garnishments and typically refers to the seizure of property rather than the garnishment of wages. It's issued by the clerk of the U.S. District or Bankruptcy Court and served by the U.S. Marshal. Writ of garnishment disputes are best handled by highly specialized attorneys.
The official source of Wage Garnishments is the Wage Garnishments page at Business.com
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