Q&A

What happens if you get a wage garnishment?

What happens if you get a wage garnishment?

Wage garnishment is the court-mandated withholding of an employee’s earnings from a paycheck for use toward debts. Any individual who receives wages, salaries, bonuses, commissions, pensions, or retirement plan income can have their wages garnished.

How much can you garnish an employee’s paycheck?

CCPA outlines the maximum percentage an employee’s wages can be garnished, depending on how much they make per week and the type of garnishment. These garnishment limits dictate how much creditors can take from your employees’ paychecks.

Can a CPA give you a wage garnishment?

Yes. Wage garnishment laws by state all vary—although not all states have additional protections or restrictions. That’s why it’s important to work with a CPA who is familiar with your state’s employer wage garnishment guidelines. For example, a head of household in Florida who earns less than $750 per week is excluded from wage garnishment.

What are the different types of wage garnishments?

Wages can be garnished for four types of debt. These wage garnishment types are listed below in order of their collection. For example, if an employee owes both child support and credit card payments, child support will be garnished first. Federal government debts are always collected before other garnishments dictated by state laws.

Do you have to be aware of wage garnishment?

Nonwage garnishment, which is less common, is generally less regulated and has fewer restrictions for creditors. You have some rights in the wage garnishment process, but in most states, it’s your responsibility to be aware of and exercise these rights. You have to be legally notified of the garnishment.

Yes. Wage garnishment laws by state all vary—although not all states have additional protections or restrictions. That’s why it’s important to work with a CPA who is familiar with your state’s employer wage garnishment guidelines. For example, a head of household in Florida who earns less than $750 per week is excluded from wage garnishment.

Can a employer discipline an employee for a wage garnishment?

Under CCPA provisions, an employer cannot discipline or terminate an employee whose wages are being garnished for a solitary debt. However, federal laws and CCPA provisions do not extend protection for employees with multiple wage garnishments.

How can I stop a wage garnishment in 2021?

One way to end your wage garnishment is to call your creditor and get them to agree to a repayment plan. Look at your budget and see what you can pay. Then can call your creditor and see if they will agree to a repayment plan for you to pay a lower monthly amount than the garnishment. This is often a successful strategy. 2.