Wage garnishment service without the worry
Wage garnishment is no walk in the park. But with Gusto’s powerful payroll and HR platform, we’ll run the numbers and send out payments on your behalf, all while reducing risk and helping you stay on top of high-stakes compliance.
How Gusto worksCreate account
Leave the math to us
We take care of complex garnishment calculations and send the payments where they need to go.
Peace of mind? Piece of cake.
We’ll help you navigate garnishment compliance, reducing stress and letting you get back to business.
We’re here when you need us
Got questions? Our award-winning support team is always just a phone call or email away.
“I love that I don't have to worry about the taxes being paid, or the %’s being correct. I also love that the timecard management is all in the same place and transitions into payroll without manual entry.”
Garnishment services
Breathe easy with built-in garnishment calculations
It’s easy to add a garnishment to Gusto in just a few steps. We’ll automatically calculate the amount per paycheck, adjust the payment date to align with your garnishment letter if needed, and remit payment to the appropriate agency when it’s due. With income-based payment tiers and changing thresholds for child support and student loans, we’ll do the math so you can skip the stress and get back to running your business.
Compliance risk reduction
Reduce your risk and subtract stress from the equation
Employee garnishments come loaded with compliance risks and potential penalties. With Gusto’s intuitive, user-friendly platform you can be confident deductions are correct while getting the guidance you need to stay compliant and avoid costly penalties.
Certified HR pros
Award-winning support every step of the way
Wage garnishment is a difficult process, especially for your employee. Our certified HR experts can help you navigate state and federal law and keep you on top of required documentation, but we’ll also help you navigate communication with your employee throughout the process. Payroll is about people, and our friendly team of experts is just a phone call away.
FAQs
Wage garnishment is the court-mandated withholding of an employee’s earnings from a paycheck for use toward debts. Any individual who receives wages, salaries, bonuses, commissions, pensions, or retirement plan income can have their wages garnished. Under federal regulations, wage from tips is usually not subject to garnishment.
Wage garnishments often come with specific rules and requirements. And there are federal employer garnishment rules to comply with too. Some employees may have multiple garnishments, which can make calculating their paycheck slightly more complicated. Common reasons for wage garnishment include failing to pay child support, unpaid taxes, student loans, medical bills, and credit card debt.
When you receive a wage garnishment notice, Gusto will help you get the garnishment set up in our system, and the required amount will be automatically deducted from your employee’s future paychecks and paid to the appropriate government authority. Gusto does not reply to the wage garnishment notice on your behalf, so it’s important you follow any specific instructions when you receive the notice.
f the garnishment came from the state of South Carolina, a tribal support agency, or a US territory, Gusto cannot send payment on your employee’s behalf, and you must remit all employee deductions to the agency directly. Gusto will calculate the deduction and include the breakdown in your employee’s paystub, but we will leave the money in your account to submit to the appropriate agency.
No. With Gusto’s payroll solutions, garnishment calculations and payments are included with all of our plans at no additional cost. Support from certified HR experts is available with our Premium plan, or through the HR add-on.
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