AUGUST QUESTION
Q.
How
do we handle pay deductions for garnishments and support orders?
A. This
can be complicated by both federal and state laws. Usually,
spouse and child support orders have priority over other wage
assignments and garnishments. Deductions for support orders
are usually at 50% of the employee's disposable income but
may go to as much as 65% based on the number of creditors
and the lateness of back support payments. With garnishments,
weekly withholdings may not exceed 10% of earnings or 25%
of disposable earnings. A garnishment may be satisfied at
the same time as a support order but only to the extent of
the difference between 25% of the weekly disposable earnings
and the support order deduction.
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