Employer's Guide to Wage Garnishment Orders
An employer that receives a wage garnishment order, IRS levy (Form 668-W), or child support Income Withholding Order (IWO) must start withholding by a fixed deadline, calculate the withholding amount using the rule that applies to that specific order type — not one formula for all three — remit the funds to the correct recipient, and cannot fire the employee over a single garnished debt under 15 U.S.C. § 1674. Multiple orders on the same paycheck follow a priority sequence, not first-come-first-served.
How much time do I have to start withholding after receiving an order?
The deadline depends on the order type and state: a child support Income Withholding Order (IWO) generally must be implemented by the first pay period that begins 14 working days after the order was mailed, though several states set a shorter deadline (Wisconsin requires 5 working days, for example). An ordinary court garnishment or writ typically states its own deadline directly on the document — follow that date rather than assuming a standard number of days. An IRS levy (Form 668-W) generally takes effect on the first payroll after receipt and continues until released.
| Order type | Typical deadline to start withholding | Where the deadline comes from |
|---|---|---|
| Child support IWO | First pay period beginning ~14 working days after mailing (varies by state) | Order itself, state child support agency rules |
| Ordinary court writ of garnishment | As stated on the writ — varies by court and state | The writ or notice itself |
| IRS wage levy (Form 668-W) | Next payroll after receipt | IRS levy instructions included with the form |
| Federal Administrative Wage Garnishment (AWG) | As stated in the notice from the federal agency | The agency's own notice |
How much of an employee's wages can we legally withhold?
The withholding limit depends entirely on which type of order you received — there is no single percentage that applies to every garnishment. An ordinary consumer-debt garnishment follows the federal Consumer Credit Protection Act (CCPA) formula: the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, unless the employee's state sets a stricter cap — see this site's wage garnishment calculator for the federal formula plus 10 state overlays. An IRS wage levy does not use this formula at all: it uses the exempt-amount tables in IRS Publication 1494, based on the employee's filing status and dependents. A child support IWO can permit a much higher percentage — up to 50-65% of disposable earnings depending on the employee's other support obligations — under its own statutory formula, separate from the CCPA's ordinary-debt cap.
Which order takes priority if we receive more than one at the same time?
A child support Income Withholding Order generally takes priority over other garnishments on the same paycheck, per 45 CFR § 303.100— with one significant exception: a federal tax levy that was already in place before the child support order was established generally keeps its earlier priority. Ordinary creditor garnishments and federal administrative wage garnishments are typically processed in the order received where more than one exists, but exact sequencing rules vary by state — when orders conflict or combined withholding would exceed what's legally permitted, contact the issuing court or agency for guidance rather than guessing.
| Scenario | General priority |
|---|---|
| Child support IWO vs. ordinary creditor garnishment | Child support IWO generally first |
| Child support IWO vs. IRS levy already in place first | Whichever was in place first generally keeps priority |
| Two ordinary creditor garnishments | Typically first received, first served — confirm with the court |
Where do we send the withheld money?
Send withheld funds to whoever is named in the specific order — a court clerk, sheriff or levying officer, a state disbursement unit (for child support), or the IRS address on the levy — not a generic default. Federal child support rules generally require remitting withheld amounts within 7 business days of the pay date, though a state can set a shorter deadline. An IRS levy includes its own remittance instructions directly on the form.
Can we fire an employee because their wages are being garnished?
No — federal law prohibits discharging an employee because earnings were garnished for one debt, regardless of how many separate garnishment proceedings arise from that single debt, per 15 U.S.C. § 1674. Willful violation carries a fine of up to $1,000, up to a year in prison, or both. This protection does not extend to a second, unrelated debt — an employee garnished for a second separate debt is not protected by this specific statute, though some state laws go further.
What happens if we don't comply with a garnishment order?
An employer that fails to withhold or remit funds as a garnishment order requires can generally be held liable for the amount that should have been withheld, separate from any penalty specific to the order type (for example, additional penalties apply under child support enforcement rules for non-compliance). Treat every garnishment order as a firm legal obligation with a real deadline, not a discretionary request — if the order is unclear or conflicts with another order already in place, contact the issuing court or agency directly rather than deciding on your own how to resolve it.
Frequently asked questions
Do we need the employee's permission to start withholding their wages?
No. A valid wage garnishment order, IRS levy, or income withholding order is a legal command directed at the employer, not a request that requires the employee's consent — compliance is mandatory once a valid order is received, subject to the deadlines and withholding limits described above.
What if the employee disputes the garnishment or says it's a mistake?
Continue withholding according to the order until you receive a modified or terminated order from the issuing court or agency — an employer generally cannot stop withholding based solely on the employee's own claim that the debt is wrong or already paid. Direct the employee to the objection or exemption process named on the order itself, such as a claim of exemption or a request for hearing.
Can more than one garnishment reduce an employee's pay below minimum wage?
No — the federal CCPA formula and most state formulas are built around protecting a minimum-wage-based floor specifically so ordinary garnishment can't reduce pay below that level; combined withholding across multiple orders still can't exceed the applicable percentage caps. Child support withholding can run higher under its own separate statutory ceiling, which is why combining a child support IWO with another order requires care rather than simply adding the caps together.
Looking for the employee's side of this? See Paycheck Garnishment: First 48 Hours or the Wage Garnishment glossary definition. When the garnishment ends, see ending a wage garnishment for release documentation and stop-withholding rules.