A garnishment is a levy against an employee's wages, salary or other income. A garnishment is usually mandated by the court system and requires the employer to deduct a certain amount from the employee's wages and issue a check to the garnishor.
Payroll Services will notify an employee of a debt withholding concerning a garnishment, tax lien, bankruptcy, or wage assignment. The employees should also receive prior notification of a debt collection by the issuing court or authorized agency.
A garnishment summons is issued by a General District Court on behalf of a creditor to recover a legal debt owed by an employee. The University is legally bound to withhold or garnish an employee's wages as instructed by the court. Payroll Services will continue to garnish wages until either the entire amount is satisfied, the due date on the garnishment summons is reached, or the garnishment is released by the court by written notification. Payroll Services will remit the withheld garnishment amounts to the appropriate court on behalf of the employee.
A bankruptcy decree is issued by a United States Bankruptcy Court on behalf of an employee to prevent further voluntary or involuntary debt collections.
Chapter 7 Bankruptcy:
Generally, a Chapter 7 Bankruptcy decree accompanied by an Order Staying Levy or Garnishment stays any existing or future garnishments or liens against an employee's wages for a specific time period.Garnishment or tax levy funds withheld by the University following the bankruptcy petition date are remitted to the employee. Debt funds withheld before the petition date that have not been remitted will be remitted according to the Bankruptcy Court's instructions.
Chapter 13 Bankruptcy:
A Chapter 13 Bankruptcy decree accompanied by an Order Staying Levy or Garnishment stays any existing or future garnishment or lien against an employee's wages until release.Debt funds held by the University are remitted to an appointed trustee as instructed by the Bankruptcy Court. Additionally, Payroll Services may be ordered to withhold a specified amount from an employee's paycheck for a specific time period and remit the funds to the trustee.
Tax liens are issued by the IRS and state tax departments to recover delinquent taxes, penalties, and interest charges.
The University is required, by law, to withhold wages for an IRS tax levy based on the number of exemptions claimed by an employee.
Payroll Services will notify an employee of a federal levy and the need to complete the Statement of Personal Exemptions portion of the levy document. Payroll Services will start to withhold at the maximum rate if the exemption statement is not completed. Payroll Services will continue to withhold for a federal tax levy until it is released by written notification from the IRS or an Order Staying Levy or Garnishment from a bankruptcy court.
A wage assignment is a voluntary withholding of a specific amount of wages between an employee and a creditor to satisfy a debt payment. Wage assignments most frequently are payments to the Department of Social Services for child support payments. Payroll Services will withhold a specific dollar amount each pay period to satisfy the wage assignment agreement and remit the amounts as they are withheld.
Questions concerning the contracted amount to be withheld should be FIRST directed to the agency issuing the wage assignment.
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| Last Update : December 30, 2003 |