Garnishment

• A 1099 subcontractor can have wages garnished similar to regular employees. The garnishment only applies to the amount of money the contractor is waiting to be paid. It does not apply to wages the contractor may earn in the future. For example, a 1099 employee who expects to receive a $500 check and has a garnishment order on the check will not receive the expected check, or a percentage of it. Future, unearned checks cannot have a hold for garnishment unless the worker has completed the work and is expecting pay for it.
  
  

Percentage

• Instead of receiving a garnishment of a certain percentage, a 1099 worker is subject to having 100 percent of his check garnished. Regardless of the amount of the check, the entire check is seized if it does not cover the debt entirely. It is likely that a percentage may remain if the debt is smaller than the expected check. The worker will then receive the remaining amount after the debt is paid.
  
  

Multiple Garnishments

• If there are multiple payments from multiple sources, each paycheck can receive an order for garnishment. If one check will cover the amount of the debt, then it is unlikely additional paychecks will receive garnishment orders. The person who is paying the 1099 worker is responsible for holding the money back to provide it to the creditor or IRS for the debt.
  
  

Duration

• Unlike regular employee garnishments, 1099 garnishments last only one paycheck. Multiple garnishments for 1099 employees may occur when a creditor or the IRS issues new orders. Each individual check must have a separate order to reduce or eliminate the paycheck from the 1099 employee. There may be checks that do not receive a garnishment while other checks may be garnished, depending on the filing of the order and how much it is for.