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Understanding Wage Withholding Orders: What You Need to Know

Learn about wage withholding orders, how they affect your income, and what rights you have as a business owner, parent, or individual with significant assets.

Introduction

A Wage Withholding Order is a legal document that requires an employer to withhold a portion of an employee's wages to satisfy a debt obligation. These orders are commonly issued for child support, spousal support, unpaid taxes, or other court-ordered debts. If you're a business owner, part of a long-term marriage with significant assets, or a parent with minor children, understanding how wage withholding orders work is essential to protect your financial interests and ensure compliance with legal obligations. This guide explains the basics of wage withholding orders, your rights and responsibilities, and how they might impact your specific situation.

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Key Things to Know

  1. 1

    Wage withholding orders are legally binding documents that require employers to deduct specific amounts from an employee's paycheck to satisfy debts like child support, taxes, or court judgments.

  2. 2

    Federal law limits most garnishments to 25% of disposable earnings, but child support withholding can be up to 50-65% depending on circumstances.

  3. 3

    Employers cannot terminate employees solely because of a single wage withholding order, as this is prohibited by federal law.

  4. 4

    Child support withholding orders take priority over most other types of garnishments, followed by tax levies and then private debts.

  5. 5

    Business owners who fail to properly implement wage withholding orders can be held personally liable for the amounts that should have been withheld.

  6. 6

    Individuals can contest wage withholding orders if they believe the amount is incorrect or exceeds legal limits, but must do so within specific timeframes.

  7. 7

    Certain assets and income sources may be exempt from garnishment, including Social Security benefits (in most cases), disability payments, and retirement accounts.

  8. 8

    Self-employed individuals are still responsible for debt obligations but are subject to different collection methods since they don't receive traditional wages.

Key decisions before you file

Before you file a Wage Withholding Order in Washington, a few decisions shape the document: which option to choose and what each one means. The Wage Withholding Order guide walks through them.

Open the Wage Withholding Order guide

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Washington Requirements for Wage Withholding Order

  • Consumer Credit Protection Act Limits (15 U.S.C. § 1673)

    Federal law limits the amount that can be garnished from an employee's disposable earnings to 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less.

  • Washington Garnishment Limitations (RCW 6.27.150)

    Washington state law limits wage garnishment to 25% of disposable earnings or the amount by which disposable earnings exceed 35 times the state minimum hourly wage, whichever is less.

  • Child Support Withholding Priority (15 U.S.C. § 1673(b))

    Child support withholding orders take priority over other garnishments, with federal law allowing up to 50-65% of disposable earnings to be withheld for child support, depending on whether the employee supports other dependents and is in arrears.

  • Washington Child Support Withholding (RCW 26.23.060)

    Washington state requires employers to withhold child support payments as specified in the order and remit them to the Washington State Support Registry within specific timeframes.

  • Employer Processing Fee (RCW 26.23.060(10))

    Washington law permits employers to deduct a processing fee from the employee's earnings for each wage withholding payment made, currently set at $10 for the first disbursement and $1 for each subsequent disbursement.

  • Employer Notification Requirements (RCW 6.27.130)

    Employers must promptly notify employees upon receipt of a wage withholding order and provide information about the garnishment process and the employee's rights.

  • Multiple Garnishment Handling (RCW 6.27.360)

    When multiple garnishments exist, Washington law establishes priorities, with child support having highest priority, followed by federal tax levies, then other garnishments in order of service.

  • Anti-Retaliation Provision (15 U.S.C. § 1674 and RCW 6.27.170)

    Federal and Washington state law prohibit employers from discharging employees because their wages are subject to garnishment for any one debt, regardless of the number of levies or proceedings.

  • Employer Liability for Non-Compliance (RCW 6.27.200)

    Employers who fail to withhold as ordered may be held liable for the amounts that should have been withheld, plus potential penalties and attorney fees.

  • Continuing Lien on Earnings (RCW 6.27.340)

    Washington law provides for continuing liens on earnings, which remain in effect until the judgment is satisfied, the employment relationship ends, or the order is vacated or modified.

  • Employee Exemption Claims (RCW 6.27.160)

    Employees have the right to claim certain earnings as exempt from garnishment by filing an exemption claim form with the court within specified timeframes.

  • Head of Family Exemption (RCW 6.27.150(2))

    Washington provides additional protection for heads of family, limiting garnishment to 15% of disposable earnings or 35 times the state minimum hourly wage, whichever is less.

  • Federal Tax Levy Requirements (26 U.S.C. § 6331)

    For federal tax levies, employers must comply with IRS requirements for withholding and remitting payments, which may override state garnishment limits.

  • Student Loan Garnishment (20 U.S.C. § 1095a)

    Federal student loan garnishments are limited to 15% of disposable income and require specific notice procedures before implementation.

  • Bankruptcy Stay Provision (11 U.S.C. § 362)

    Wage garnishments must cease immediately upon notification of an employee's bankruptcy filing due to the automatic stay provision of bankruptcy law.

  • Termination of Withholding (RCW 6.27.350)

    Withholding must terminate when the underlying obligation is satisfied, and employers must promptly cease withholding upon receipt of a release or termination order.

  • Answer Requirements (RCW 6.27.190)

    Employers served with a wage withholding order must file an answer with the court within 20 days, stating whether the employee works for them and detailing the employee's earnings.

  • Service Requirements (RCW 6.27.110)

    Wage withholding orders must be properly served on the employer according to Washington's service of process requirements to be legally effective.

  • Withholding for Support Enforcement (RCW 74.20A.080)

    Washington's Division of Child Support can issue administrative wage withholding orders without court involvement for child support enforcement.

  • Interstate Income Withholding (RCW 26.21A.501-526)

    Under the Uniform Interstate Family Support Act, Washington employers must honor income withholding orders from other states for child support enforcement.

Frequently Asked Questions