Managed Payroll · Wage Garnishment
Payroll teams that process garnishments by hand most often get one of two things wrong: the withholding limit, or the remittance deadline. Both carry real exposure for the employer, not just the employee. BEG calculates every order against the correct federal or state limit, deducts it from the right paycheck, remits it to the right agency on schedule, and keeps the records an audit asks for, all included in the standard managed payroll rate.
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TL;DR
A wage garnishment is a court or agency order requiring an employer to withhold part of an employee's pay and send it to a third party. How much can be withheld is capped, by federal law for most debts and by the issuing agency's own rules for tax levies and defaulted student loans, and the cap depends on the type of debt. Getting the calculation wrong, or missing a remittance deadline, exposes the employer. BEG processes every garnishment type as part of the standard managed payroll service: calculation against the correct limit, deduction, remittance, and recordkeeping, included in the $25-$45 PEPM rate, $500 monthly minimum. No per-order fee.
Five Kinds of Orders
Every order below reaches an employer's payroll differently, and each one carries its own withholding rule. Treating them as one generic category is where most miscalculations start.
The Part Most Guides Skip
There is no single garnishment percentage. Each order type has its own ceiling, and applying the wrong one is the single most common garnishment mistake on a payroll desk.
An employer that withholds too little can become liable for the shortfall. An employer that withholds too much owes the employee back pay and can face a separate claim. Applying the correct limit on the first cycle matters more than correcting it after a notice arrives.
Reference Table
| Order type | Who issues it | Typical limit | What BEG does |
|---|---|---|---|
| Child support / alimony | State child support agency or court | Up to 50-65% of disposable earnings, by circumstance | Calculate, withhold, remit to the state disbursement unit, track arrears |
| Federal tax levy | IRS | Publication 1494 exempt amount, remainder withheld | Calculate the exempt amount, collect the employee statement, remit to the IRS |
| Student loan (administrative wage garnishment) | U.S. Department of Education | Up to 15% of disposable pay, when in effect | Apply whatever rule is currently in effect, remit accordingly |
| Creditor judgment | State court | Lesser of 25% disposable earnings or amount above 30x federal minimum wage | Calculate under Title III and any stricter state limit, remit to the creditor or court |
| Bankruptcy trustee order | Bankruptcy court trustee | Set by the confirmed repayment plan | Withhold and remit per the plan's schedule |
Included, Not Extra
Already running payroll on your own platform? BEG can take over garnishment processing, along with the rest of the cycle, inside the account you already have. See managed payroll for ADP users or the full managed platform series.
Transparent Pricing
FAQ
A wage garnishment processing service calculates the correct amount to withhold from an employee's pay under a court or agency order, deducts it on the right cycle, remits it to the correct recipient, and keeps records for audit. BEG provides this as part of its standard managed payroll service, not as a separate product.
ADP, like other major payroll platforms, processes garnishments as part of its standard payroll service for accounts that run on ADP. If your company already runs payroll on ADP and wants that processing handled without migrating off the platform, BEG can take over garnishment calculation, remittance, and recordkeeping inside your existing ADP account. See managed payroll for ADP users.
It depends entirely on the type of order. Most creditor garnishments are capped at the lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage. Child support can reach 50 to 65%. Federal tax levies use a protected exempt amount instead of a percentage. Student loan administrative wage garnishment, when active, is capped at 15%. There is no single answer that applies to every order.
An employer that withholds too little can become liable for the amount that should have been withheld. An employer that withholds too much owes the employee the difference and can face a separate claim. Getting the calculation right on the first cycle matters more than correcting it after a notice arrives.
No. Garnishment calculation, deduction, remittance, and recordkeeping are included in the standard $25-$45 PEPM managed payroll rate, all-inclusive, $500 monthly minimum. A new order does not add a line item.
As of this writing, the U.S. Department of Education has paused administrative wage garnishment collections on defaulted federal student loans, with no restart date announced. When active, the cap is 15% of disposable pay. BEG applies whatever rule is legally in effect at the moment an order actually arrives.
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