My payroll manual states that no more than 25% of disposable income can be garnished from an employee’s wages?
A provision in Title III of the Consumer Credit Protection Act (CCPA) – 15 USC § 1673 (a) – protects employees by limiting the amount of earnings that may be garnished in any workweek or pay period. However, 15 USC §§ 1673(b)(1)(B) & (C) specify that garnishment restrictions do not apply to bankruptcy court orders and debts due for federal and state taxes. Therefore, 10% of the taxpayer’s monthly gross salaries and wages must be withheld for and remitted to the NC Department of Revenue, even where the 25% CCPA cap is exceeded as a result of other wage attachments. Consult your attorney for advice about the CCPA cap and how receipt of the NC tax garnishment may impact other wage attachments.
Related Questions
- Does the payroll tax exemption apply to wages paid to an employee who was previously laid off and then rehired by the same or related employer after a 60-day period?
- Does the payroll tax exemption apply to wages paid to a qualified employee hired to replace an existing worker whose employment terminated?
- My payroll manual states that no more than 25% of disposable income can be garnished from an employee’s wages?
