Description
Overview
This webinar concentrates on the basics of processing garnishments in the payroll department. It covers the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments such as payday loans and student loans, and of course, how to handle child support orders. It includes best practices for reconciling and processing the garnishments in the payroll department. Sample memos for communicating with the employee concerning garnishments are included.
Background
To bring a national standard to child support withholding laws, the Federal government has enacted laws that require states to adopt certain rules when setting their own standards for implementing child support requirements. These requirements include deadlines for withholding and remitting payments, filing procedures, and penalties and fines for violations. But the states are free to set up their own rules and regulations as long as they fall within those guidelines and many do differ from the minimum federal requirements. Payroll departments must know both the federal laws and the state laws and must determine which one applies to the child support withholding order.
But child support is not the only garnishment payroll must handle. Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. If garnishments are not handled correctly, you may find yourself facing situations that become extremely costly both financially and emotionally. Courts, federal and state regulations, bureaucracies, lawyers and a multitude of other factors can complicate even the most basic procedures. Add in the emotional turmoil that often accompanies garnishment orders and even small errors can become major disasters.
The reality is that all of the people and entities involved in any garnishment expect action from the payroll department. Payroll must understand all the laws that apply towards processing these all types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way! Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly.
Session Highlights
- Specific requirements for child support, including deduction limits, deadlines, filing procedures, administrative fees, and penalties/fines for violations
- How to handle terminated employees in regard toany garnishment
- Best practices for communicating with employees and issuing parties
- The federal requirements a payroll department must know on each type of garnishment
- How state requirements affect garnishments
- What rules are followed when it comes to state tax levies—and it may not be the CCPA
- How to calculate the withholding and prioritize the order of distribution when an employee has more than one type of garnishment
- What to do with “payday loans” or what are known as voluntary wage assignments for creditors
- Best practices for processing garnishments in the payroll department
Who should attend?
- Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry Level Personnel
- Human Resources Executives/Managers/Administrators
- Accounting Personnel
- Business Owners/Executive Officers/Operations and Departmental Managers
- Lawmakers
- Attorneys/Legal Professionals
- Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues
