IRS wage garnishment is a process of collecting debt from a person's weekly wages. Garnishment of wages works by taking a portion of a person's net income from each paycheck until the debt is paid off. Laws and regulations limit the amount of money that may be garnished per paycheck. Employees are also protected against being discharged due to a federal wage garnishment on their income.

Wage garnishment laws can be complicated for both employees and employers. To better understand the rules, there are plenty of resources you can turn to for more information. You can find wage garnishments education and training resources through:

1. The U.S. Department of Labor.

2. Lawyers familiar with the wage garnishment process.

3. Services that provides assistance for those who want to start or stop wage garnishment.

Action Steps
The best contacts and resources to help you get it done

Refer to government and expert resources for more information on garnishment wages

There are many expert resources online that can explain the law to employers. Of course, the most authoritative source for information on the process comes from the U.S. government. Government resources provide information on garnishment laws that outline the the amount of money that can be held back from an employee's paycheck, as well as laws that pertain to the unlawful firing of an employee who receives wage garnishments.

I recommend: The U.S. Department of Labor provides an employment law guide that covers all the basics of wage garnishments. Thomson Reuters provides the "Employer's Guide to Garnishment," which can help you work out how and when you need to garnish an employee's wages. Federal Student Aid provides a comprehensive overview of an employer's role in an administrative wage garnishment should an employee default on a student loan. Take an audio course on garnishments best practices from HRTrainingCenter.com or a webinar instruction session with Amorette N. Bryant, author of The Complete Guide to Federal and State Garnishments, presented by WorkForce Software.

Consider referring to lawyers for advice on bank garnishment

Both employers and employees can benefit from referring garnishment issues to a lawyer who is familiar with tax and garnishment laws. It's important to make sure you follow the law in regards to any action you take with an employee who has garnishments.

I recommend: Legal Match provides an overview of the wage garnishment process, and also provides links to help you find a wage garnishment lawyer. HR.BLR.com is a service that provides a legal overview of wage garnishments, outlines the employer's responsibilities, and provides sample documents.

Use software to ensure you comply with wage garnishment human resources issues

Companies that need to perform wage garnishments can use tools like wage garnishment software, or wage garnishment tools that come with accounting and payroll software. This can help you calculate what needs to be held back from an employee's paycheck and keep track of where the money is sent.

I recommend: Sage Compliance Services provides wage garnishment software for your business, and can also provide complete installation and training. Ultimate Software can help you implement HR solutions for payroll services, including tools for garnishments and levy calculations. Check out its extensive list of webinars and events to learn more.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you have to deal with tax garnishment from one or more employees, make sure you check resources that can tell you whether your business qualifies for a reimbursement fee for costs associated with garnishing pay.

Typically, the wage garnishment process begins when someone owes taxes to the IRS. Wage garnishments are also commonly set up through a court order after two parties settle alimony or child support cases. Wage garnishments ensure that the party owed money gets his or her due in a timely manner, but for the person whose wages are garnished, it can mean a very small pay check. Preparing your business' employees for wage garnishment can be easy with the right garnishment resources.

Rely on three areas of expertise to determine how your HR department handles the garnishment of wages:

1. Local statutes and government compliance guides on garnishment of wages;

2. Wage garnishment calculation tools and simple documents; and

3. Professional payroll specialists who can handle garnishment wages for you.

Action Steps
The best contacts and resources to help you get it done

Let the U.S. Department of Labor help you understand wage garnishment laws

The first step in knowing how to protect your business and your employees in IRS wage garnishment is to go right to the source with updated information via the U.S. Government. You can count on the Labor Department's website for the best and most current information.

I recommend: The website of the U.S. Department of Labor explains protection available for those subject to the wage garnishment process. For a state-by-state listing of interest rates and statutes of limitations for debt wage garnishment, go to BCSAlliance.com.

Turn to free online resources for do-it-yourself garnishment of wages

You can find several free online resources for setting up the most simple policies. Many companies who offer software for managing IRS wage garnishment also feature free trials. The software is usually affordable but, if in the end you find that it is not, knowing a little about the process via free software trials can get you started.

I recommend: Companies like Business Legal Reports and HR.com can help you find immediate resources to help your business manage payroll for employees subject to federal wage garnishment.

Trust big name experts in the wage garnishment process if you can afford them

Payroll or HR experts will have a staff especially devoted to handling accounts subject to garnishment wages. The expert's job is to know the state-specific laws and how to implement them -- which means they'll pay the price if they don't get it right.

I recommend: ADP Resource and AmCheck, both providing years of service in the payroll industry, can take the hassle out of calculating with full-service payroll solutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A writ of garnishment has completely different implications than wage garnishments and typically refers to the seizure of property rather than the garnishment of wages. It's issued by the clerk of the U.S. District or Bankruptcy Court and served by the U.S. Marshal. Writ of garnishment disputes are best handled by highly specialized attorneys.

Wage garnishments are used to receive payment for debt, taxes or court-ordered fees. The most common wage garnishment is child support. Most payroll personnel have to deal with some form of wage garnishment. There are different types of wage garnishment, and each type has specific regulations the employer needs to follow. Understanding the terminology and regulations concerning wage garnishments allows you to understand what rights the company and employee have and what rules need to be followed.

Action Steps
The best contacts and resources to help you get it done

CCPA

The CCPA, or the Consumer Credit Protection Act, protects employees with wage garnishments from being dismissed because of the garnishment.

I recommend: Learn more about the CCPA from the U.S. Department of Labor. Farlex also has information about the CCPA.

Spousal maintenance

Spousal maintenance, alimony or spousal support is a set amount of money that a divorced person or a person going through the divorce process must pay his or her spouse. The amount specified depends on the money earned during the marriage and is set by the state.

I recommend: Learn more about spousal maintenance at Goldstein Law Office.

Voluntary wage assignments

An employee can request that part of his or her pay be garnished or assigned to go to a specific account. This is called a voluntary wage assignment. Voluntary wage assignments can be used to purchase savings bonds, pay a debt, donate to charity and more.

I recommend: Discover more information about voluntary wage assignments at Payroll on a Budget. Washington State Office of Financial Management also has information about voluntary wage assignments.

Wage levy

A wage levy is garnishment that the IRS uses to get taxes from individuals who have a balance due. A wage levy can include up to 85 percent of an employee's take-home pay in order to pay back taxes.

I recommend: Find more information about wage levies at IRS-SOLV. Visit the Internal Revenue Service to get more information regarding a wage levy.

Writ of garnishment

A writ of garnishment is a court order to garnish an employee's wages or property. A writ of garnishment is presented to the garnishee before the garnishment takes effect.

I recommend: Visit United States Marshals Service to find information about a writ of garnishment. Learn even more at My Web Lawyer.

Administrative wage garnishment

An administrative wage garnishment is used to pay overdue student loans. Before an administrative wage garnishment takes effect, an order of withholding is sent to the employee to inform him or her of the garnishment.

I recommend: The U.S. Department of Education provides detailed information about administrative wage garnishment. The Financial Management Service also has information about administrative wage garnishments.