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.
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 2013, 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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
