Workplace Garnishments: What Your Small Business Needs to Know

When it comes to processing employee’s payroll with multiple garnishments, there is an established hierarchy of which one takes precedence.  The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was signed into law on April 20, 2005 and enacted on October 17, 2005.  Prior to this law, Chapter 13 bankruptcy orders took priority over other garnishments.  There was no limit to this federal deduction.  Along with consideration for the type of order issued is the date on which it was issued.  Date order, earliest to latest, establishes when the set amount begins coming out of employees’ paychecks.  If you’re unsure of the pecking order, here’s an overview of some of the most common types of garnishments. (more…)