Texas Garnishment laws & HR compliance analysis

Texas Garnishment: What you need to know

A garnishment is an order of a court to an employer (the garnishee) to withhold a sum of money from an employee's earnings for payment of a debt. In Texas, an employee's wages may not be garnished for a consumer debt or for any debt other than child support, spousal support, certain federal taxes, and government-backed student loans.
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Income. In addition to regular weekly wages, other earnings subject to garnishment for support include other compensation for personal services (including commissions, overtime pay, tips, and bonuses); interest, dividends, and royalty income; self-employment income; severance pay; pension and annuity payments; workers' compensation; disability benefits; and unemployment compensation (TX Fam. Code Sec. 158.001).
Procedure. Upon receipt of an Order/Notice to Withhold Income for Child Support or Notice of an Order to Withhold Income for Child Support, an employer is considered to have been officially notified to begin income withholding from the employee named and to remit the amount withheld. To comply with the order, an employer must begin withholding for child support no later than the first pay period that occurs after the date the order is received, deduct child support on the regular pay dates, and submit payments to the address specified in the order on the pay date or for payments made by Electronic Funds Transfer (EFT) or Electronic Data Interchange (EDI), and transmit payments no later than the second business day after the pay date. The employer must withhold according to the terms of the order until otherwise notified. The employer may deduct an additional $10 per month or the actual administrative cost, ...

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