Answer: Follow these guidelines for procedures that employers should follow each time a wage deduction order is processed:
Tips for processing payroll deductions:
- Read the order as soon as it is received.
- Provide the employee with a copy of the wage deduction order. (Note that the employer may not be legally required to do so.)
- Determine the purpose of the wage deduction order. In other words, is this a tax levy, child support order, debt, etc.?
- Determine what portion of the employee’s wages may be exempt from the order.
- Determine in what priority multiple orders (if any) against the same employee must be satisfied.
- Answer the wage deduction order as stated on the face of the order or as required by state law.
- Withhold from the employee’s wages the amount required by the order. Begin to withhold based upon the order, even if the employee is currently challenging the legitimacy and/or amount of the order.
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The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion.