Is there a limit to how much can be garnished?

Yes, the CCPA limits most garnishments to 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage.

Can I charge an administrative fee?

Some states allow employers to deduct a small administrative fee for the cost of processing the garnishment.

Compliance

What is Wage Garnishment?

Wage garnishment is a legal process where an employer is ordered by a court or government agency to withhold a specific portion of an employee's earnings to satisfy a debt, such as child support or unpaid taxes.

Processing Garnishments

1Receive the garnishment order.
2Calculate disposable earnings.
3Withhold the lesser of the amount ordered or the federal/state maximum limit.

Employer Responsibilities

Employers are legally liable for the full amount if they fail to garnish properly. Federal law (CCPA) also prohibits firing an employee for a single garnishment.

Payroll Integration

While ClockIt focuses on time tracking, its exports provide the accurate details on 'disposable earnings' needed for payroll software to calculate garnishments correctly.

Get Started with ClockIt

Frequently Asked Questions

Is there a limit to how much can be garnished?: Yes, the CCPA limits most garnishments to 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage.
Can I charge an administrative fee?: Some states allow employers to deduct a small administrative fee for the cost of processing the garnishment.

Related Terms

Ready to optimize your workforce?

Stop worrying about time tracking and start focusing on growth.

Try ClockIt Free