What Is A Wage Garnishment?
7999
Society > Divorce
Mar 1, 2007
Henry Byers
What Is A Wage Garnishment?
A wage garnishment is a legal procedure through which a percentage of a person's earnings are withheld by an employer for the payment of a debt. Most wage garnishments are made by court order. Other types of wage garnishments are of legal or open procedures made by the IRS or state tax collection agency levies for unpaid taxes and federal agency administrative garnishments for non-tax debts owed to the federal government.
Wage garnishments do not include voluntary wage garnishments. Some debtor's may voluntarily consort with their employers to turn over a specified amount of their earnings to a creditor to absolve the debt voluntarily, without the use of a court order.
The Wage and Hour Division of the Department of Labor's Employment Standards Administration has dispensed Title III of the Consumer Credit Protection Act (CCPA) to limit the amount of an employee's earnings that are garnished and protects employee's from losing their jobs if their wages are garnished for only one debt.
Title III of the CCPA is enforced in all 50 states, including the District of Columbia, and all U.S. territories and possessions. This is a law that protects everyone who receives personal earning and incomes, e.g. wages, salaries, commissions, bonuses or earnings from a pension or retirement plan. The CCPA also forbids an employer from discharging an employee whose wages are garnished for any one debt, regardless of the number of levies made or attempts made to collect that debt, because of one single wage garnishment. The CCPA does not forbid discharging an employee when an employee's wages are separately garnished for two or more debts owed.
The amount of pay subject to wage garnishment is based on the employee's disposable wages. This is the amount of pay left over after all legally required deductions are made, e.g. federal, state and local taxes, State Unemployment Insurance, Social Security or any other withholdings for employee retirement systems required by law.
Deductions that are not required by law and that may not be subtracted from gross earnings when calculating disposable earnings under the CCPA are: voluntary wage deductions, union dues, health and life insurance, charitable contributions, savings bonds, optional retirement plans, reimbursements to employers for payroll advances or merchandise.
Title III of the CCPA sets a maximum amount that may be garnished in any pay period, regardless of how many wage garnishment orders are received by the employer. For common wage garnishments, excluding those for child support, alimony, bankruptcy, or any state or federal tax, the weekly amount may not exceed 25% of the employee's disposable earnings or by the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage. If a state wage garnishment law differs from the CCPA, the law resulting in the smaller wage garnishment must be observed.
Wage garnishments do not include voluntary wage garnishments. Some debtor's may voluntarily consort with their employers to turn over a specified amount of their earnings to a creditor to absolve the debt voluntarily, without the use of a court order.
The Wage and Hour Division of the Department of Labor's Employment Standards Administration has dispensed Title III of the Consumer Credit Protection Act (CCPA) to limit the amount of an employee's earnings that are garnished and protects employee's from losing their jobs if their wages are garnished for only one debt.
Title III of the CCPA is enforced in all 50 states, including the District of Columbia, and all U.S. territories and possessions. This is a law that protects everyone who receives personal earning and incomes, e.g. wages, salaries, commissions, bonuses or earnings from a pension or retirement plan. The CCPA also forbids an employer from discharging an employee whose wages are garnished for any one debt, regardless of the number of levies made or attempts made to collect that debt, because of one single wage garnishment. The CCPA does not forbid discharging an employee when an employee's wages are separately garnished for two or more debts owed.
The amount of pay subject to wage garnishment is based on the employee's disposable wages. This is the amount of pay left over after all legally required deductions are made, e.g. federal, state and local taxes, State Unemployment Insurance, Social Security or any other withholdings for employee retirement systems required by law.
Deductions that are not required by law and that may not be subtracted from gross earnings when calculating disposable earnings under the CCPA are: voluntary wage deductions, union dues, health and life insurance, charitable contributions, savings bonds, optional retirement plans, reimbursements to employers for payroll advances or merchandise.
Title III of the CCPA sets a maximum amount that may be garnished in any pay period, regardless of how many wage garnishment orders are received by the employer. For common wage garnishments, excluding those for child support, alimony, bankruptcy, or any state or federal tax, the weekly amount may not exceed 25% of the employee's disposable earnings or by the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage. If a state wage garnishment law differs from the CCPA, the law resulting in the smaller wage garnishment must be observed.
Article Source: http://www.articlerich.com
Henry Byers, Retired IRS Manager and Wage Garnishment Law expert - focusing on IRS Tax Levy and IRS Bank Levy
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
The Romans were the first civilization to sell promissory notes at a discount, begng the dustry of factorg. America was built largely on the possibilities of factorg, when colonial busesses were factored by Europeans willg to vest cash
Category:
A wage garnishment is a legal ure through which a percentage of a person's earnings are withheld by an employer for the payment of a debt. Most wage garnishments are made by court order. Other types of wage garnishments are of legal or open
Category:
If you have a problem with cash flow, you might consider finding a company that engages in buying invoices to get you on the right track again. Often, through no fault of their own, small and large companies find themselves in a bind because they don't
Category:
Other links at Society > Divorce
As most married uples know, there are natural ups and downs in every relationship, this article does not discuss the regular every day stress related fights and arguments between uples but a more serious situation where both partners are seriously
Category:
A divorce is one of the moist horrible things that can happen to a family. The emotional burden and trauma of the members is immense and the issue of child custody is one that appears frequently in a San Diego divorce. A San Diego divorce can be a
Category:
Failed relationships are difficult and devastating. After a breakup, most people temporarily lose touch with who they are and instead obsess over what their ex is doing now. Confusion, loneliness, and self-doubt envelop their lives, preventing them from m
Category:
Divorce court can be very scary for a person who has never had to experience being there. After all, you ultimately will be giving up control of your divorce to the Judge, someone who most likely will not know.
Category:
The first step in the process of pising something is to label it. There are countless mediation models, many of which come with their own labels; such as team mediation, transformative mediation, etc. Most of these, and their practitioners, can be
Category:
Site Sponsor
Directory Statistics
Articles: 68285
Categories: 501
Yahoo Entertainment
