When you hire a new employee, our system automatically sends notification to the state to meet your new hire reporting requirements. If the employee has an outstanding wage attachment (garnishment, bankruptcy, lien, child support, levy, etc.), you can expect to receive an order to comply within a couple of weeks.

If you've received new wage attachment paperwork, follow these steps:

• Scan a copy of the paperwork (include scans of the backs of pages if there is relevant information) and upload it to the employee's record in iSolved under Employee Management > Human Resources > Employee Documents.

• Email customerservice@dominionpayroll.com to let our service team know there is a new document ready for setup. Include the employee's name and the name of the file in your email.

• Complete any "answer" paperwork that the garnishing entity has requested related to the employee's employment status. (If you need assistance with any calculations, just shoot a follow-up email to DP Customer Service.)

• Check your payroll reports the next time you run payroll to make sure the employee's garnishment has been deducted.*

NOTE: Dominion Payroll will be responsible for remitting payments that are deducted from the employee to the garnishment agencies unless otherwise arranged. All other correspondence to the court, including the garnishment answer paperwork, should be completed and returned by the client.

*If you see that the garnishment has not been deducted, please follow up with us so that we can help you identify the reason.

The most common situation is that the employee's earnings don't meet the legal withholding limitations. If that happens, and you are unable to garnish the employee's pay, the garnishing entity will expect you to notify them not to expect payment. It is important not to neglect this step, as the garnishing entity will hold your company responsible for nonpayment in the absence of appropriate communication. Occasionally, garnishment YTD totals may decrease between paychecks due to corrections for accurate reporting across tax years. Employers should verify that these adjustments are documented and align with payroll records to maintain compliance. Employers must also notify the garnishing agency when deductions cannot be made due to insufficient earnings. This communication ensures compliance and helps document the situation. Additionally, employers should monitor payroll each pay period to determine if garnishment deductions can resume, ensuring timely compliance when earnings become sufficient.

Handling Multiple Garnishments

When an employee has multiple garnishments:

• If an existing garnishment is already withholding the full 25% of disposable earnings, any subsequent garnishments will be queued. The second garnishment will not begin withholding until the first garnishment is paid in full and released.

Special Cases: Child Support Withholding

Child support orders have unique rules compared to regular garnishments:

• If an employee’s earnings are insufficient to cover the full ordered amount, withhold a partial amount based on the employee’s disposable income.

• Child support deductions must not exceed 50% of the employee’s earnings.

• Remit the withheld amount to the child support agency, even if it is less than the ordered amount.

Insufficient Earnings for Garnishments

If an employee’s earnings in a pay period are too low after required withholdings and exemptions:

1. There may be insufficient disposable income to take one or more garnishment deductions.

2. Earlier or concurrent garnishment orders might not be withheld.

3. Employers should notify the garnishing agency when the employee does not have sufficient earnings for the deduction. This helps avoid potential penalties and documents the situation appropriately.