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Charging Garnishment Fees to Employees Utah

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  • Charging Garnishment Fees to Employees Utah

    Please correct me if I am wrong. In Utah, we can charge a one time fee of $25 to employees for child support garnishments, but other types of garnishment fees are paid by the creditor, therefore we can't charge employees on those?

  • #2
    Short answer is read the order. Generally speaking, you can do anything the order says.

    Longer answer:
    - There is a federal law called CCPA. That particular law sets federal rules for certain types of wage withholding orders. Specfically, creditor garnishments, child support, and federally insured student loans. CCPA specifcially does not cover tax levies or bankruptcy orders. If CCPA says you cannot do something, then there is nothing the state or anyone else can do to change that. But CCPA leaves many things to the state. Example. Per CCPA creditor and student loan orders come out of the first 25% of DW or not at all. But CCPA allows states to use a lower maximum number. TX for example does not allow creditor garnishments at all. But child support orders are the same everywhere because CCPA allows no state discretion there.
    - Now you used the word "garnishment". Do you mean this phrase in the CCPA sense of the word, which is creditor garnishment only? Or do you mean any wage withholding order?
    - Then past that, each state can and often has it's own rules on deduction. I can say with certainly that CA (for example) does not allow the employer to charge fees on withholding orders unless specified in the order.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)