Garnishments

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Garnishments

• Tips and resources regarding
• garnishments in Idaho!

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• Multiple Orders
• Student Loan Garnishments w/ Consumer Debt
  Garnishments
• Student Loan Garnishments w/ Child Support
  Withholding Orders
• IRS Levys and Child Support Withholdings
• Consumer Debt Garnishments and Child Support
  Withholdings or IRS Levys

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Have you ever had this happen?

• Have a student loan garnishment in place then
  received a consumer debt garnishment?
• What do you do?

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• The student loan is for either 10 or 15 of your
  employees disposable income. 31 U.S.C.
  3720D, enacted by section 31001(o) of the Debt
  Collection Improvement Act of 1996, Pub. L.
  104-134, 220 Stat. 1321-358
• The consumer debt garnishment (also referred to
  as a Sheriffs Garnishment) is based on 25 of
  the employees disposable income. Title III of
  the Consumer Credit Protective Act (15 U.S.C.
  1673) and Idaho Code 28-45-104
• Therefore you can take both. But how?

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• Calculate the student garnishment first.
• then
• Calculate the Sheriffs Garnishment.
• Reduce the Sheriffs Garnishment by the amount
  withheld for the student loan debt.

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(No Transcript)
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• The total withheld amount
• cannot exceed 25 of the employees disposable
  income.

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What if my employee

• Has a Student loan garnishment then receives a
  Child Support Order?

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• If the amount of the child support withheld is
  greater than 25 of the employees disposable
  income.
• Complete and return the Employer Certification
  form or send a letter to the U.S. Department of
  Education for the Student loan debt advising them
  of the situation. They will send a Notice of
  Cancellation of Order for Withholding of Wages
  notice for your records.

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What if the child support is under 25?

• Then you must honor both, up to 25 of the
  employees disposable income.
• For this example the Child support amount is
  183.00

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Federal Wage Garnishment Law, Consumer Credit
Protection Act's Title 3 (CCPA)

• Synopsis of Law
• The wage garnishment provisions of the Consumer
  Credit Protection Act (CCPA) protect employees
  from discharge by their employers because their
  wages have been garnished for any one debt, and
  it limits the amount of an employee's earnings
  that may be garnished in any one week. CCPA also
  applies to all employers and individuals who
  receive earnings for personal services (including
  wages, salaries, commissions, bonuses and income
  from a pension or retirement program, but
  ordinarily not including tips).

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What if my employee

• Has received an IRS Levy and a Wage With-holding
  Order for Child Support?

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• If the IRS levy was entered BEFORE the underlying
  child support order was established, then the IRS
  levy takes precedence over the child support
  order. If not, the child support order takes
  precedence.

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• The employer should notify the Child Support
  Enforcement agency that an IRS levy was received
  in addition to the Wage Withholding Order. The
  child support agency can inform the employer if
  the child support order was established prior to
  the date that the IRS levy was entered.

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• If the IRS levy was entered first, then it is the
  responsibility of the Child Support enforcement
  agency to contact the Internal Revenue Service of
  the child support order. Most likely the IRS
  will release their levy.

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What if my employee

• Has other garnishments against their wages and I
  receive a Wage Withholding Order for Child
  Support or an IRS Levy?

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• Child Support takes precedence over all other
  wage garnishments (except an IRS Levy as
  previously discussed).
• If the amount of withholding exceeds 25 of the
  employees disposable income
• Return the garnishment by notifying the Sheriffs
  Office or Student Loan Guarantors of the priority
  withholding.

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• IRS Levys are also a higher priority and must
  supersede the Sheriffs garnishment and/or
  Student loan debt garnishment. Since the IRS
  Levy is based on an exempt amount (see
  Publication 1494), which is more than 25
• Return the garnishment by notifying the Sheriffs
  Office or Student Loan Guarantors of the priority
  withholding.

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OK! Lets review

• You can do multiple orders as long as you dont
  exceed 25 of the employees disposable income.
• If you have a Sheriffs garnishment at 25
  against your employee, you are at the maximum
  percentage and must return the lesser withholding
  order.

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Priority of withholdings

• Child Support takes the highest priority
• Federal IRS Levy
• Bankruptcy payment under Chapter 13
• Based on 1st come 1st served
• Sheriffs garnishments
• Student loan debt

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Quick Reference Guide helpful Web Sites!

• US Dept of Health Human Services
• Admin for Children Families
• www.acf.hhs.gov/index.html
• Idaho Dept of Health Welfare
• www.healthandwelfare.idaho.gov

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• US Dept of Labor
• Employment Law Guide
• www.dol.gov/asp/programs/guide/garnish.htm
• Title III, Consumer Credit Protection Act (CCPA)
  15 USC 1671 et seq. 29 CFR 870
• www.dol.gov/compliance/laws/comp-ccpa.htm
• Federal Garnishment Restrictions
• 15 USC 1673

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• Internal Revenue Service Home page
• www.irs.gov
• US Dept of Education
• Federal Student Aid (FSA)
• Administrative Wage Garnishment
• www.ed.gov/offices/OSFAP/DCS/awg.html

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• Idaho Code 28-45-104
• www3.state.id.us/idstat/TOC
• State Controllers Office web site
• www.sco.idaho.gov
• And ME ?

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Idaho State Controllers Office

• Michaelle Powell, Garnishment Officer
• 208-334-2394
• or email
• mpowell_at_sco.idaho.gov