Garnishee Explained: Definition and What Employers Should Know
What is a garnishee?
A garnishee is a third party, often an employer, that is legally required to withhold money or assets from an individual who owes a debt. These funds, typically part of the debtor’s earnings, are redirected to a creditor under the authority of a court order.
A Closer Look at Garnishee Responsibilities
In legal terms, a garnishee is any entity in possession of money or property that belongs to someone facing a debt collection or judgment. Most commonly, garnishees are employers who are ordered by a court to withhold a portion of an employee’s wages to satisfy unpaid obligations.
When a court issues a wage garnishment, the garnishee is the party responsible for deducting the required amount directly from the employee’s paycheck. These withheld funds are then forwarded to the creditor or other recipient specified by the court.
This process is most often used to enforce:
- Debt repayment to creditors or financial institutions
- Unpaid child support
- Court-ordered alimony or divorce settlements
- Overdue rent or other legal obligations
Real-world examples
A garnishee might be involved in situations where an individual has defaulted on a loan, owes back taxes, or has failed to meet court-ordered financial obligations such as spousal or child support. In these cases, the garnishee, typically the employer, plays a critical role in ensuring those funds are redirected appropriately.
For businesses using modern payroll platforms like Beyond, garnishment processing can often be automated to stay compliant with court orders and minimize errors in wage deductions.