Texas Wage Garnishment
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Employees can get very upset when their paycheck is not what they expected. Sometimes they can be embarrassed that they have a personal issue that bleeds over into their place of employment, and may worry how that will affect their job or future opportunities. Understanding how to process orders of support and tax levies, knowing what the limits are on wages that can be garnished and being prepared to answer questions from employees on how you calculated their disposable pay will be invaluable the next time you are faced with a garnishment. You will walk through examples and calculations for accurate payroll deductions for garnishments.
AuthorsRuth Seiler Rock, M.B.A., SPHR, CCP, Staff Managers, Ltd. Co.
What Is a Garnishment?
- Levy or Wage Attachment
- Child Support
- Tax Levy
- Student Loans
- General Creditor Debts
- Civil Actions
Federal Laws and Agencies
- Federal Garnishment Law
- IRS and Treasury Regulations
- Higher Education Act
- Debt Collection Improvement Act
- Bankruptcy Act
- Office of Child Support Enforcement, a Division of U.S. Department of Health and Human Services
- Personal Responsibility and Work Opportunity Reconciliation Act
- Family Support Act
- Uniform Interstate Family Support Act
What Is Allowed in Texas?
- Texas Family Code
- Texas Payday Act
Does Federal or State Law Have Precedence?
Prohibitions Against Discharge
- CCPA Due to a Single Indebtedness
Limits on Pay That May Be Garnished and Calculation Examples
- Disposable Earnings Less Than 30 Times Federal Minimum Wage
- CCPA Child Support
- CCPA General Creditor
- HEA Delinquent Student Loans Limited to 15 Percent, Along With Aggregated Limit of 25 Percent Under CCPA
Computing Disposable Pay Under the CCPA
- What Is Included in Earnings?
- How Often Do You Need to Recalculate Disposable Pay?
Calculation of Federal Garnishment Limits
Steps to Process a Garnishment
- Determine the Correct Amount to Be Withheld
- Confirm Validity Under State Law
- Verify Amount of Claim
- Determine If Amount Is Within Legal Limits
- Prioritize Multiple Garnishments
- Notify Employee
Support Garnishments Under Texas Family Code
- 50 Percent of Disposable Earnings Are Exempt From Support Withholding
- Wages, Salaries, Commissions, Bonuses, Tips, Severance, etc. Are Earnings Subject to Support Withholding
- Employer Is Required to Enroll Child in Health Coverage
- Employer Is Required to Withhold Premium
- Must Begin Support Withholding at the First Pay Period Following Delivery of the Order
- Must Remit Subsequent Payment on the Employee's Pay Date
- Support Payments Have Priority; Multiple Orders Pay Equal Amounts; Child Support Has Priority Over Spousal Maintenance
- Monthly Administrative Fee Not to Exceed $10
Enforcement and Liabilities:
- Wage and Hour Division
- Fines and Imprisonment