Editing Garnishment (section)

== Wages==
'''Wage garnishment''', the most common type of garnishment, is the process of deducting money from an employee's monetary compensation (including [[salary]]), usually as a result of a [[court order]]. Wage garnishments may continue until the entire debt is paid or arrangements are made to pay off the debt.<ref>{{cite web|title=Wage Garnishment in Ohio|url=https://www.communitylegalaid.org/node/22/wage-garnishment-ohio|website=Community Legal Aid|publisher=Community Legal Aid Services, Inc|access-date=11 October 2017|date=April 2013}}</ref> Garnishments can be taken for any type of debt but common examples of debt that result in garnishments include:
* [[Child support]]
* Defaulted [[student loans]]
* [[Tax]]es
* Unpaid [[court costs]]
* Court-ordered judgments

When served on an [[employer]], garnishments are taken as part of the [[payroll]] process. When processing payroll, sometimes there is not enough money in the employee's [[net pay]] to satisfy all of the garnishments. For example, in a case with federal tax, local tax, and credit card garnishments, the first garnishment taken would be the federal tax garnishments, then local tax garnishments, and, finally, garnishments for the credit card. Employers receive a notice telling them to withhold a certain amount of their employee's wages for payment and cannot refuse to garnish wages.<ref>{{cite journal |title=Wage Garnishment |url=http://edocket.access.gpo.gov/2003/pdf/03-31489.pdf |publisher = U.S. Government Publishing Office |journal= [[Federal Register]] | volume= 68 |issue = 246 |date=2003-12-23 |access-date=2009-06-15}}</ref> Employers must correctly calculate the amount to withhold, and must make the deductions until the garnishment expires.<ref>{{cite news |title=Garnishments: A Trap for Employers  |url=http://www.natlawreview.com/article/garnishments-trap-employers |publisher=Varnum, LLP|work= The National Law Review|date= December 17, 2012 }}</ref>

Wage garnishment can negatively affect credit, reputation, and the ability to receive a loan or open a bank account.<ref>{{cite book |author=Mara Yoresh and Daniel Rivera |title=Playing the System- The Consumer's Guide to Credit Repair |url=https://books.google.com/books?id=tIRspPpPbOsC&dq=%2B%22wage+garnishment%22+%2B%22credit+score%22&pg=PA16 |page=16 |publisher=MD Corp |year=2007 |access-date=2009-06-15 |isbn=978-1-4348-2302-1}}</ref>

At present four [[U.S. states]]—[[Pennsylvania]], [[North Carolina]], [[South Carolina]], and [[Texas]]—do not allow wage garnishment at all except for tax-related debt, child support, federally guaranteed student loans, and court-ordered fines or restitution. The federal garnishment limit (with some exceptions like child support and student loans) on a weekly basis is the lower of (A) 25% of one's disposable earnings (what's left after mandatory [[tax deductions]]), or (B) the total amount by which one's weekly wage exceeds thirty times the [[minimum wage in the United States|federal hourly minimum wage]]. Several other states observe maximum thresholds that are lower than the maxima provided by federal law. States may also prohibit garnishment altogether in certain circumstances. For example, in [[Florida]] the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this is subject to [[waiver]]). Loans and negotiations with creditors can also help debtors to avoid wage garnishment.

In Minnesota, there are five limits on wage garnishment: Creditors cannot garnish wages for social security benefits, retirement benefits, welfare payments, workers' compensation benefits, or income associated with disability or unemployment insurance.<ref>{{cite web|title=Garnishment|url=https://www.ag.state.mn.us/consumer/publications/Garnishment.asp|website=Minnesota Attorney General|access-date=19 March 2018}}</ref>

In many states when the person is an employee or appointee of a governmental unit the writ is called a Writ of [[Sequestration (law)|Sequestration]]. These are processed by the courts in the same manner as garnishments and are subject to the same wage exemptions.

In the United States, firing an employee to avoid handling a levy may be a criminal offense. Federal law provides for a fine of up to $1,000 and imprisonment for up to one year on an employer who willfully fires an employee in connection with a garnishment of the employee's earnings.<ref>See {{usc|15|1674}}; see also, Internal Revenue Manual, IRM 5.11.5.2 (rev. Jan. 1, 2006), Internal Revenue Service, U.S. Department of the Treasury.</ref>