An employer is responsible for withholding and remitting income tax an employee owes to the IRS. This is called employment taxes, such as social security and unemployment taxes. Other deductions are not part of the money withheld from an employee’s paycheck.

What Is an Income Deduction Order?

An income deduction order is an order requiring an employer to withhold a specific money amount from wages. The income deduction is to satisfy financial obligations.

What Are the Type of Income Deductions?

Common income deductions include current child support payments and Chapter 13 bankruptcy payments.

What Is a Wage Garnishment?

A wage garnishment, also called a wage attachment, is a court order directly an employer to deduct money from an employee’s pay. The money is then sent to the creditor who sought a judgment against the employee. Wage garnishment is usually used for back child support and credit card judgment.

The typical limit for wage garnishments is 25 percent of the amount left after all tax obligations are deducted.

Are There Differences Between Income Deductions and Wage Garnishments?

Yes. Income deductions are most commonly used in bankruptcy and child support cases. Wage garnishments aren’t. Other differences include:

  • Wage garnishments are used to satisfy past debts
  • Income deductions aren’t subjected any state or federal wage garnishment limits
  • Income deductions are used to automatically deduct current financial obligations
  • To obtain a wage garnishment, creditors usually have to file a lawsuit 

Can I Stop a Wage Garnishment?

Yes. An employee can go to court to resolve the issue or file bankruptcy to obtain an automatic stay.

Do I Need Help From a Lawyer to Resolve Income Deductions and Wage Garnishments?

Yes, it’s in your best interest to obtain legal counsel regarding both types of deductions. A bankruptcy lawyer will guide you through the process of resolving debts.