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Wage Garnishment Management Without the Paper Shuffle
eBacon manages wage garnishments inside construction payroll automatically. It calculates each court-ordered deduction against the correct disposable-income limit, handles multiple garnishments on one paycheck in the right priority, and sends payments directly to the courts, agencies, or creditors named on each order, so your payroll team isn't doing the math or mailing the checks.
Garnishment orders arrive with plenty of legal language and zero instructions for your payroll system. That part is our job.
What does eBacon do with a garnishment order?
eBacon calculates every garnishment against the correct limit for the order type and the employee's state, every pay period. When an employee has more than one order, eBacon withholds in priority order, even when the paycheck isn't big enough to cover them all. Then eBacon remits each withheld amount directly to the court, agency, or creditor named on the order. You enter the order once. eBacon handles the rest of the paper trail.
What happens when an employee has more than one garnishment?
eBacon handles multiple garnishments on a single paycheck by applying them in priority order and calculating each one against what's left. Child support orders generally come first. Tax levies and creditor garnishments follow rules based on order type and the date each was received, and state law can change the sequence.
When the paycheck is too small to cover every order in full, eBacon distributes the withheld amount according to each order's requirements, so no order gets shorted by accident and no employee gets over-withheld.
What is a wage garnishment?
A wage garnishment is a legal order that requires an employer to withhold part of an employee's pay and send it to a third party until a debt or obligation is paid. Common types include child support orders, federal and state tax levies, federal student loan garnishments, and creditor garnishments from a court judgment.
For the employer, every order is a set of instructions with legal weight: how much to withhold, where to send it, and when to stop. Get any of the three wrong and the employer can become responsible for the amount that should have been withheld. That's a lot riding on a deduction code.
How much can be withheld from an employee's paycheck?
It depends on the type of order. Under the federal Consumer Credit Protection Act, ordinary creditor garnishments are limited to 25% of disposable earnings, or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is less. Child support orders can take 50% to 65%. Federal tax levies follow IRS exemption tables instead.
Many states set lower limits than federal law, and some restrict certain creditor garnishments entirely. eBacon applies the right limit for the order type and the employee's state automatically, so nobody has to look up the percentage before payroll runs.
How does eBacon get garnished wages where they need to go?
eBacon holds the withheld amount securely and remits it to the recipient named on each order: a child support agency, a tax authority, a court, or a creditor. Payments go out on the schedule the order requires. Your payroll team doesn't cut a separate check, look up a mailing address, or wonder whether last month's payment went out.
Mandatory Garnishments
Voluntary Deductions
How does eBacon keep garnishment records audit-ready?
eBacon keeps every garnishment and levy in one place, with the order number, amount withheld each pay period, year-to-date total, recipient, and a copy of the court order attached to the record. eBacon tracks the running total for each order, so you know when the full obligation has been met and withholding should stop.
Post-payroll reports pull every court-ordered deduction in a few clicks. When someone asks for proof of what was withheld and where it went, the answer is a report, not a scavenger hunt through email and filing cabinets.
What do employees see on their pay stubs?
Employees see each garnishment on their pay stub, with the current amount and the year-to-date total. That cuts down on "how much have they taken so far?" questions landing on payroll, and it gives employees a clear, consistent record of their own deductions.
Do garnishment rules change by state?
Yes. States set their own withholding limits, exemptions, deadlines, and rules for how pre-tax and post-tax deductions affect disposable earnings. eBacon applies the rules for the employee's state automatically, which matters when your crews work, live, and get served with orders in more than one state.