Most employers first encounter wage attachments when an unfamiliar envelope arrives from a court or the IRS, directing them to start withholding from a specific employee's paycheck. Ignoring it isn't an option. Federal and state law require compliance, and failure to withhold can make the employer directly liable for the unpaid debt. For payroll teams, attachments are routine but unforgiving: the math has to be right, the timelines have to be met, and the employee's remaining wages have to meet federal minimums.
What Triggers a Wage Attachment Several debt categories commonly trigger attachments. Child support is the largest, handled through state Income Withholding Orders (IWOs). Federal tax levies from the IRS come on Form 668-W. State tax levies, defaulted federal student loans (administrative wage garnishment), bankruptcy orders, and private creditor judgments from civil court each have their own forms and rules.
Each type has different priority, withholding limits, and employer notification requirements. Child support generally takes first priority under federal law, followed by federal tax levies, then other debts in the order received.
How Much Employers Can Withhold The Consumer Credit Protection Act (CCPA) caps garnishment for most consumer debts at the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage. Child support can go higher: 50-65% depending on whether the employee supports another family and is in arrears. Federal tax levies use IRS tables to determine exempt amounts.
State law often provides greater protection. Several states cap garnishment more aggressively than federal law, and a handful (North Carolina, Pennsylvania, South Carolina, Texas) prohibit most consumer debt garnishments entirely. When state law is more protective than federal, state law controls.
Can an Employer Fire Someone Over a Wage Attachment? Federal law (CCPA Title III) protects employees from termination based on a single wage garnishment. Multiple garnishments for separate debts are not federally protected, though several states extend protection further.
Processing Wage Attachments Without Errors The first step on any new attachment is reading the order carefully. Identify the debt type, the start date, the withholding amount or formula, where to send payment, and any termination conditions. Enter the attachment into payroll before the next pay cycle. Most payroll systems automate the ongoing withholding once the setup is right.
Track priorities when multiple orders apply to the same employee. A new child support order can displace a private creditor order. Document every order received, every payment sent, and the running balance if applicable.
Protecting the Organization From Attachment Liability Common compliance failures include missing the start date, withholding the wrong amount, sending payment to the wrong address, or failing to stop withholding when the debt is satisfied. Any of these can expose the employer to liability for the unpaid portion of the debt.
Build a standard intake process for every new order: log it, calculate withholding, notify the employee, and set a reminder for the termination date or review point. Cross-check attachment calculations against net pay to confirm remaining wages meet federal and state minimums. Keep every order and every payment record for at least the statutory retention period (typically 3-5 years).
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