Define: Wage-Withholding

Wage-Withholding
Wage-Withholding
Quick Summary of Wage-Withholding

Wage-withholding, also known as attachment of wages, occurs when an individual’s employer deducts a portion of their earnings to repay a debt or judgement. In certain cases, the money is sent to the court and then disbursed to the creditor. Federal law permits the automatic deduction of up to 50-60% of a person’s disposable income for child support or alimony obligations. This process is referred to as automatic wage-withholding. Ancillary attachment involves the seizure and retention of property until a claim is resolved. Additionally, wage-withholding can also pertain to the act of attaching or connecting one thing to another.

Full Definition Of Wage-Withholding

Wage-withholding, also known as attachment of wages, occurs when a plaintiff takes a portion of a defendant’s earnings as an employee to pay off a debt. In certain jurisdictions, the court can mandate the defendant’s employer to deduct a specific amount or percentage of their wages and remit it to the plaintiff to guarantee payment for the debt owed. For instance, if a person owes child support or alimony, the court can order their employer to withhold a portion of their wages to settle the debt. According to federal law, up to 50% of a wage-earner’s disposable income can be seized if they have another family of dependents, and up to 60% if there is only one family. If the person is more than three months behind on payments, an additional 5% can be seized until the debt is paid. Another scenario is when a creditor wants to ensure they will be paid if they win a lawsuit. They can request a provisional attachment, which enables them to seize the debtor’s property before the judgement is made. This ensures that if the creditor wins, they can sell the seized property to recover the debt owed to them.

Wage-Withholding FAQ'S

Wage-withholding is a legal process where an employer deducts a portion of an employee’s wages to pay off a debt or obligation.

Wage-withholding can be used to collect debts such as child support, taxes, student loans, and court-ordered judgments.

No, an employer is legally required to comply with a wage-withholding order issued by a court or government agency.

The amount that can be withheld varies depending on the type of debt and the state laws. Generally, the maximum amount that can be withheld is 25% of disposable income.

No, it is illegal for an employer to terminate an employee solely because their wages are being withheld for a debt.

Yes, an employee can challenge a wage-withholding order if they believe it is incorrect or unfair. They can file a motion to modify or terminate the order with the court or agency that issued it.

No, an employer cannot charge an employee for processing wage-withholding orders.

Yes, an employer can be held liable for failing to comply with a wage-withholding order. They may face penalties and legal action.

Yes, an employee can request a voluntary wage-withholding agreement to pay off a debt. This is different from a court-ordered wage-withholding.

Wage-withholding can last until the debt is paid off in full or until the court or agency that issued the order terminates it.

Related Phrases
No related content found.
Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

  • Page URL:https://dlssolicitors.com/define/wage-withholding/
  • Modern Language Association (MLA):Wage-Withholding. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/wage-withholding/.
  • Chicago Manual of Style (CMS):Wage-Withholding. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/wage-withholding/ (accessed: May 09 2024).
  • American Psychological Association (APA):Wage-Withholding. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/wage-withholding/
Avatar of DLS Solicitors
DLS Solicitors : Divorce Solicitors

Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.

All author posts