Help Streamline the Wage Garnishment Process with Automation

While employers want to deliver consistent, accurate and compassionate service to employees with wage garnishments, they have to balance that with their obligation to comply with varying wage garnishment laws and requirements, which can shift due to changes in legislation.

Written by: CT Corporation 

In addition, they have to manage the costs associated with the entire process while maintaining continuity through business changes, such as employee turnover and updates in garnishment laws.

Handling wage garnishment orders can be challenging for companies to do on their own as requirements vary by state, jurisdiction and the particular court ordering the garnishment. Differences in maximum withholding limits, calculations, lien priorities and response requirements can add yet another layer of complexity to the process. Oftentimes, there’s also risk involved in handling sensitive employee data and communicating with state agencies. These challenges can make it difficult to strike the right balance between being cost-efficient and managing risk while providing great employee service.

Working with a registered agent and third-party service provider to automate the garnishment process can help alleviate many of these hurdles for the employer. Garnishment automation can help companies streamline communications with the state agency, help ensure garnishment orders are processed on time, and help keep sensitive employee data secure during transactions. Plus, integrated solutions can help employers reduce the risk of penalties associated with non-compliance.

According to the ADP Research Institute, 7.2 percent of employees had their wages garnished in 2013¹, which may require businesses to devote extensive resources to track, document and process garnishment orders. Garnishment automation can help take much of the burden off employers and creates an integrated process that will help them focus on what’s most important: their business and their people.

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