Involuntary deductions from employee paychecks -- aside from taxes -- are wage deductions or wage garnishments. Wage deductions and wage garnishments are court ordered and are usually due to child support debts, federal, state or local tax liens, or unpaid student loans. Wage garnishments are typically a specific amount or percentage deducted from a paycheck, and generally continue until you satisfy the debt in full. Legal wage deductions for taxes are sometimes called levies instead of garnishments.
Typical Wage Garnishment Orders
Typical wage garnishment orders are from a local county court forcing a parent to pay back child support, or from an agency with legal powers of seizure, such as the IRS or the Department of Education, for a debt to the federal government.
Types and Priorities of Garnishments
States have varying laws about wage deductions and the different types of wage deduction garnishments have their own set of regulations and legal priorities in the event of multiple garnishments. Generally, 25 percent is the maximum amount that can be garnished from a paycheck, although this can vary according to the court/agency issuing the garnishment and type of debt. In the case of multiple garnishments, wage deductions for child support have first priority, then tax liens and student loan debt, followed by any others in the order received by the employer.
Release of Garnishment
Release of garnishment happens when you fully pay off the debt. This will happen automatically in most cases as the accounting office at the employee's workplace is responsible for conveying the garnished funds to the appropriate authorities, and should be keeping track of the amount of the debt. Sometimes garnishees may make other arrangements to get the garnishment released early.
Multiple Garnishments
Some people have multiple garnishments on their paychecks, meaning that even if they get a release of garnishment for one of them, the one with the next highest priority moves up. In this case, the paycheck is still garnished by the legally allowed maximum for that category of wage deduction.
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