From the course: Human Resources: Payroll
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Garnishments and payroll taxes
From the course: Human Resources: Payroll
Garnishments and payroll taxes
- When processing your company's payroll, there are quite a few deductions that must be taken out of an employee's check. Garnishments and taxes top that list. Garnishments may come from a court order or a government agency. The employer is required to start withholding the garnishment immediately upon receipt of the right of garnishment. And they're required to return a statutory response within seven days of receiving the request. However, the employee is also sent a copy of the garnishment order and they have a certain number of days to contest it. The exact time period does vary by state. All pay, including wages, commissions, and bonuses, should be included in that garnishment calculation. Garnishments can be for child support, debt, student loans, and delinquent taxes. Also, it's very important to understand what taxes to withhold from an employee's paycheck. There are federal and state taxes that must be processed.…
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