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Agency Payroll Garnishments: What You Need to Know | BEG to Know (2026)
Garnishments in marketing agencies follow the federal Consumer Credit Protection Act limits, 25 percent of disposable earnings or the amount above 30 times the federal minimum wage, whichever is less, with the marketing agency twist that 1099 vs W-2 freelancer classification and project-based bonuses count as earnings. BEG: $25 per employee per month in your existing platform or $45 on isolved, live in 3 to 5 days.
The federal limits
Title III of the Consumer Credit Protection Act caps ordinary garnishments at the lesser of 25 percent of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, $217.50 a week at $7.25. Child support orders can reach 50 to 65 percent, and tax levies and bankruptcy orders have their own tables. Disposable earnings are gross pay less legally required deductions, not less voluntary ones like a 401(k) or health premium.
What counts as earnings in a marketing agency
1099 vs W-2 freelancer classification, project-based bonuses, multi-state remote teams and billable vs internal payroll allocation are all earnings for garnishment purposes when they are paid as compensation for personal services, so the order applies to the whole check, not the base rate.
At the BLS May 2025 national median for market research analysts and marketing specialists, $78,760 a year or $1,515 a week, a typical 25 percent cap on disposable earnings lands near $284 a week, and the exact figure depends on that employee's required deductions.
Processing rules that avoid employer liability
An employer that ignores an order can become liable for the amount it should have withheld. Orders are answered by their deadline, multiple orders are stacked in the priority the law sets (child support first), the employee is not disciplined for a single garnishment, and withheld amounts are remitted to the issuing agency on its schedule with the case number on every payment.
Read the full guide to how to handle payroll garnishments, and the rest of the marketing agency payroll library.
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Frequently Asked Questions
How much of a marketing agency employee's pay can be garnished?
For ordinary debts, the lesser of 25 percent of disposable earnings or the amount over 30 times the federal minimum wage per week. Child support can take up to 50 to 65 percent depending on arrears and dependents.
Do 1099 vs W-2 freelancer classification count toward a garnishment?
Yes. Anything paid as compensation for personal services is earnings under the CCPA, so 1099 vs W-2 freelancer classification enter the disposable earnings calculation along with base pay.
Can a marketing agency fire an employee over a garnishment?
Not for a single debt. The CCPA prohibits discharge because earnings have been garnished for any one debt; state law often extends that protection further.
What does managed payroll cost for a marketing agency?
$25 per employee per month inside your existing platform or $45 on BEG's isolved HCM, all-inclusive, with a $500 monthly minimum. 1099 vs W-2 freelancer classification, project-based bonuses and multi-state remote teams are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Marketing & PR Agencies. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage Garnishment
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