Is There a Set Limit That Can Be Garnished Out of a Paycheck?

Wage garnishment is the process by which an employer is ordered to withhold a certain amount of money from an employee's paycheck in order to satisfy a debt. A garnishment is often the result of a court order but can be unilaterally undertaken by government agencies as well. While having your paycheck garnished can be a disturbing experience, a worker can rest assured that federal law has established a maximum limit that can be taken.

Garnishable Debt

Any creditor can seek a writ of garnishment from the court in order to satisfy a legal debt. The garnishment might be granted for credit card debt, defaulted student loans, unpaid court fines, late tax payments and more. Generally, a court order is required before an employer begins the garnishment process but there are examples, such as the IRS in regard to delinquent taxes, where bank accounts and paychecks can be attached without direction from the court.

Garnishment Types

The most common type of garnishment is when an amount is withheld from an employee's regular paycheck and sent to the creditor to satisfy a debt. Federal law particularly describes the maximum amount of money that can be withheld. The second type of garnishment is bank account garnishment, where the bank holding your account is instructed to take money residing there and turn it over for satisfaction of the account holder's debts. With both types of garnishment, there are special conditions that allow for a higher withholding level.

Federal Law

The Consumer Credit Protection Act is the controlling federal law when it comes to wage garnishment. A two-fold standard is applied that sets limits on how much of an employee's salary may be garnished. The first standard states no more than 25 percent of any paycheck is garnishable. The second standard limits garnishment to only that amount more than 30 times the prevailing hourly minimum wage. When a writ of garnishment comes in, the employer should choose the standard that results in the least money taken. When state and federal law conflict on garnishment amounts, the lesser total should be used.

Higher Garnishment

A greater amount of a paycheck can be garnished in the presence of certain debits. Child support, federal or state taxes, and bankruptcy can result in the garnishment threshold being raised to no more than 50 percent, a number than can be raised again to 60 percent if the employee is not supporting a spouse or child. These particular kinds of debts that are more than 12 weeks behind can be assessed another 5 percent penalty. Keep in mind that the garnishment is applied after other legally required deductions have been taken, such as FICA, retirement, and state and local taxes.