Overview: A garnishment is a court order directing that money or property of a third party (usually wages paid by an employer) be seized to satisfy a debt owed by a debtor to a garnishing agency.
Common Types of Garnishments:
How Does Buddy Punch Payroll Support Child Support Garnishments?
Buddy Punch Payroll deducts and remits child support garnishment payments to the requesting agency. Garnishments can be added by administrators or through the help of the Buddy Punch team.
When adding the garnishment, we collect the following which can all be found on the garnishment notice:
the garnishment’s case number,
agency,
issue date per pay period amount,
maximum amount or percent to withhold, and
effective start date
For each regular payroll after the effective start date, we deduct the per pay period amount or the max amount of disposable income from the employee’s wage. For off-cycle payroll, the garnishment will only be deducted if "apply post-tax deductions" is checked.
An employee may have multiple active child support orders at once. If deducting for all orders in full would exceed the allowable amount to garnish, we will partially apply all deductions according to the Administration for Children and Families (ACF) rules.
If you would like Buddy Punch Payroll to deduct but not remit child support garnishments to the agency, please reach out to the Buddy Punch team.
How Does Buddy Punch Payroll Support All Other Garnishments?
Outside of child support garnishments, Buddy Punch Payroll deducts but does not remit garnishment payments. Garnishments can be added by administrators or through the help of the Buddy Punch team.
For each regular payroll after the effective start date, we deduct the per pay period amount or the max amount of disposable income from the employee’s wage. For off-cycle payroll, the garnishment will only be deducted if "apply post-tax deductions" is checked.
Once deducted, it would be the responsibility of the employer to remit the payment to the garnishing agency. Details for the payments remittal are found within the garnishment order. If you need assistance reviewing a garnishment order, please reach out to the Buddy Punch team.
FAQ:
Q: Must Buddy Punch Payroll remit child support payment?
A: By default, Buddy Punch Payroll deducts and remits child support garnishments to the requesting agency, however, if you would prefer Buddy Punch Payroll not remit, please let us know.
Q: Is there a limit to how much money can be garnished from employee wages?
A: Limits and terms vary between agencies and will be outlined within garnishment orders.
Q: How can I stop a garnishment order in effect?
A: In order for a garnishment to be stopped, an amended order must be received from the garnishing agency directly. Buddy Punch is unable to contact agencies on an employee's behalf. Please contact the relevant agency with any specific garnishment-related concerns.