How Is a Wage Withholding Notice Sent Out?

Wage withholding is a legal process that states use to collect money that is incurred through some type of debt. These debts create an obligation for repayment and if citizens do not make their payments accordingly, creditor organizations can collect the money from their income. In most cases, wages are garnished directly from paychecks before they even reach the debtor. In this case, a wage withholding notice is sent to the employer.

Notice Order

The notice order specifies the legal issue that is causing the debt withholding and what the employer must do to comply with the current standards. Notices include information on the amount to be withhold, the maximum that can be withheld, and where the wages must be sent. When the notice order is sent, the employer must legally begin withholding on the first pay period after it is received. However, employers do not need to change their payment structures to make necessary payments.

Sending the Notice

Often, wage withholding notices are sent by states through physical mail. Some states send these notices automatically when people are late with government-related payments such as child support. However, methods can vary from state to state, and withholding notices can usually be sent by any agency with the necessary authority. For example, courts may be able to send notices if the withholding is the result of a judgment lien instead of a state-created cause. States can also send notices across borders depending on where the company is located.

Additional Information

States may include extra information along with the withholding notice to make payment easier. Some include a general document of withholding information. They may also send a calculation worksheet specifically for certain cases such as past-due child support. This helps summarize the issue that the employer often does not know about and makes an ideal record to have on file. Of course, a copy of the withholding notice is also sent to the employee.

Notice Information

The notice provides basic information in regard to wages. For example, an employer fee may be incurred. The notice will specify exclusions, like the disposable income limit, that apply along with maximum withholding amounts. These details can vary from state to state, so the notice depends on the state in which it originated, not the state in which it was received.