What types of Garnishments are there?

Garnishments generally fall into 5 categories:

Child Support:

  • These are most commonly used to collect support payments that are overdue and are sometimes referred to as Income Withholding Orders.
  • Occasionally, employers may receive updated income withholding orders updated withholding amounts. To determine if the order is new, additional order or if it is updated, compare the Case Numbers, Order Numbers, and Remittance ID from the previous order to the new one.
  • For more information on Child Support/Income Withholding Orders and employer requirements, please visit https://www.acf.hhs.gov/css/resource/processing-an-income-withholding-order-or-notice 

Unpaid Taxes:

  • This type of garnishment, also known as a tax levy, is issued by the IRS to recover unpaid personal tax balances.

Creditor:

  • Utility companies, banks, or other businesses that have unpaid balances can file lawsuits to recover their money, resulting in a garnishment on an employee’s wages.

Student Loans

  • Failure to repay a student loan debt can often result in long term wage garnishments.

Bankruptcy

  • Bankruptcy garnishments are very uncommon. Be sure to verify your employee’s documentation before proceeding.
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