What Does It Mean to Garnish Wages?
Garnishment refers to the legal process in which a portion of an employee’s paycheck is withheld by the employer and redirected to a third party, typically to settle a debt as mandated by a court order.
A Closer Look at Wage Garnishment
Wage garnishment involves deducting funds from an employee’s net pay (after taxes have been applied). Employers may be legally obligated to carry out garnishments when a worker owes past-due payments such as child support, alimony, or back taxes. However, garnishments can also be triggered by outstanding student loans, unresolved credit card balances, unpaid rent, or other financial judgments.
Companies that manage payroll through providers like Beyond are responsible for ensuring garnishment orders are accurately processed in compliance with federal and state regulations.