Garnishments

• Garnishments can be taken out of an employee's wages for different reasons. Owing child support or non-payment of child support is an example of debt that may be garnished from employee's wages. Other debts include unpaid taxes, student loans, unpaid court fines and any other type of monetary judgment. Working under the table is illegal, and an employee or employer caught doing so to avoid garnishments can be fined, and face jail time or both.
  
  

Order of Garnishments

• A company's payroll department is responsible for the garnishment process. Sometimes when the payroll department or company processes the payroll, an employee's wages may not be enough to cover the court ordered garnishments. In cases such as these, the correct order to take garnishment must be satisfied. Meaning the most important debt is to be paid first. In instances of federal, state and local taxes, the federal tax garnishment will be paid first, and then state and local taxes followed by credit card debts and so on.
  
  

Percentage of Garnishments

• A certain amount or percentage of the employee's check can be garnished. Federal law states that 25 percent of an employee's wages is the maximum amount that may be garnished from his check. The amount in some states may vary, depending on other debts and responsibilities of the employee. For example, in Florida, any employee who provides more than half the support for a child or other dependent is exempt from garnishment any amount. If employers do not take the correct percentage out of the employee's wages, the employer is liable.
  
  

Benefits That Can't Be Garnished

• To be garnished, an employee's wages must be regular, and above the federal minimum wage rate. There are restrictions on wages of a person that cannot be garnished. If a person's income comes from Social Security benefits, retirement benefits or public assistance benefits, her wages cannot be garnished at all. If a person's income comes from worker's compensation, unemployment or disability benefits, only child support judgments can be garnished.
  
  

States That Prohibit Garnishment

• Some states do not allow wage garnishments to be served on employees, including North Carolina, Pennsylvania, South Carolina and Texas. In these states, the only debts that can be garnished include child support, federally guaranteed student loans, and court ordered fines or restitution for a crime the debtor committed. Any other fines are prohibited.