Wage Garnishment: What You Need To Know
No one really likes having bills. Even if those bills are what let us have a new fishing boat, we don’t like paying them. The fact is that we don’t have much choice in the matter. If we don’t pay our bills they might just take the money automatically. How is this possible? By using something that is known as Wage Garnishment. Wage garnishment is when a debtor can legally require your employer to withhold part of your paycheck. What they withhold is instead sent to the debtor. For this article, we will provide information that pertains to both employees and employers.
Who Can Garnish Wages?: The answer is practically any company you legally owe money to. The only difference is some need a court order. Some can garnish wages without a court order. The simple answer to who needs a court order and who doesn’t is federal typically doesn’t. Other companies typically do. A more detailed list of what can garnish wages without a court order is:
- Child Support
- Alimony
- Back Taxes
- Federal Student Loans
Your wage garnishment cannot exceed 25% of your disposable income or 30 times the federal minimum wage. Which one is used depends on which is less. Disposable income means your total income after deductions such as federal taxes. If you make less than 30 times the federal minimum wage, your wages cannot be garnished. It should be noted the federal minimum wage is different from your state’s minimum wage. To better explain we will do a quick breakdown below.
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The federal minimum wage is currently $7.25.
$7.25 x 30 = $217.50
You work a part-time job making $217 a week or less you can not have your wages garnished.
If you work a job that pays more than $217 a week, you are able to have your wages garnished.
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Additional Information:
Wage Garnishment is based on each job you hold. If you work two jobs, each is garnished separately. Meaning if you make less than $217 at one job but more than $217 at the other, only one job can be garnished. If neither job pays you $217 or more neither job can be garnished.
When you are a tipped employee your tips count as a part of your disposable income. If you make $100 weekly wages and $150 in reported tips, you exceed the $217 limit and can have your wages garnished.
Multiple companies can garnish your wages. But combined they can not exceed 25% of your income.
Can An Employee Be Fired For Wage Garnishment?
In Florida, no employee can be fired for wage garnishment. In every state, it is against the law to terminate employment over one wage garnishment. In some states, it is legal to fire an employee over multiple wage garnishments. Florida law, however, prohibits termination regardless of how many companies have placed a garnishment on your wages.
If you find yourself too busy as an employer to fully understand wage garnishment, consider a little help. Daytona Beach Payroll Company Vision H.R. has years of experience in all forms of payroll. From your basic weekly pay to employee benefits and garnishments. Request a free quote and find out what having an outsourced payroll can do for your company.
