Can You Have Multiple Garnishments? Understanding the Limits and Priorities

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Shabbir Saloda
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Latest Facts and News

  • Approximately 12% of garnished employees have more than one type of garnishment
  • Recent changes in federal regulations aim to provide more protection for employees with multiple garnishments
  • The COVID-19 pandemic has led to an increase in wage garnishment cases
  • Some states are considering legislation to further limit multiple garnishments

The stress of losing a portion of your paycheck to garnishment can make things unbearably tight since you’re already stretching every dollar to cover rent, bills, groceries, and basic needs. Then, out of nowhere, you’re hit with another notice. Another garnishment order? On top of the first?

Your mind races. Is this real? Can you have multiple garnishments? Is it even allowed? Or is it some sort of scam trying to prey on my already strained finances?

While the situation is formidable, it’s important to understand that the laws are in place to protect you. These regulations establish caps on allowable collections and prioritize the sequence of debt repayments.

But following these rules is not always easy. Let’s get into how these protections work and what you need to know to face this situation head-on.

Understanding Multiple Wage Garnishments

Wage garnishment is a legal process where a portion of your paycheck is withheld by your employer to pay off a debt, such as unpaid taxes, child support, student loans, or court-ordered judgments. The withheld amount is sent directly to the creditor or agency you owe.

But, can you have multiple garnishments? The answer is, yes.

Simply put, multiple wage garnishments occur when an employee has more than one legal order requiring their employer to withhold portions of their earnings to satisfy different outstanding debts simultaneously.

This situation creates major challenges for employees and employers, making it difficult to manage the financial and legal responsibilities involved.

Impact on Employees

Wage garnishments can create challenges for employees, including financial stress from losing up to 25% of their paycheck and job security risks if they have multiple debts. While some states offer protections, employees may benefit from employer-provided financial counseling to manage their situation.

Impact on Employers

Handling garnishments adds administrative work for employers. It requires compliance with federal and state laws, prioritizing debts, and meeting deadlines. Mistakes can result in fines or liability for the debt, making clear processes essential for accurate management.
By keeping these points in mind, both employees and employers can better manage the challenges of multiple garnishments and better understand the “yes” to the question, “Can you have multiple garnishments?”

Types of Wage Garnishments

Wage garnishment sounds scary, but having a good knowledge about the several types can prepare the ground for you to know where things went south.

Here’s a breakdown of the most common types:

Type of GarnishmentWhat Is It?Who Takes the Money?How Much Can Be Taken?When Does It Get Paid?
Child SupportMoney owed for children or family support.State or federal agencies.Up to 50-60% of wages.First—This is the top priority garnishment and must be paid before all others.
Federal Student LoansUnpaid loans borrowed for education.U.S. Department of Education.Up to 15% of disposable income.Second—Paid after child support garnishments are handled.
Federal Wage GarnishmentsUnpaid federal debts like taxes.IRS or other federal agencies.Depends on the debt type (varies).After student loans—handled only once child support and student loan garnishments are processed.
State Wage GarnishmentsUnpaid debts to state agencies.State tax or revenue offices.Varies by state, typically up to 15%.After federal debts—These are processed after all federal debts are fully repaid.
State Income TaxesUnpaid taxes owed to your state.State tax agencies.Varies by state.Last—Handled after all other federal and state garnishments are resolved.

How Many Garnishments Can You Have at Once?

It’s only natural to feel terrified after just knowing that the answer to “Can you have multiple garnishment?” is multifold. To top it off, you know have to worry, “How many?”

Fairly speaking, you can end up having multiple wage garnishments simultaneously, as there is no federal limit on the number of garnishments that can be applied to a single individual’s earnings.

However, federal and state laws are the foundation for wage garnishment regulations. Below, we explore these rules from a high-level viewpoint to help you better understand their implications.

Federal Wage Garnishment Rules

Federal wage garnishment rules govern how much money can be seized from a person’s paycheck to repay certain debts while still retaining enough income for basic living needs.

What Are Disposable Earnings?

Federal garnishment rules apply to disposable earnings, which are the portion of a paycheck left after mandatory deductions, including:

  • Federal and state taxes
  • Social Security and Medicare taxes
  • State Unemployment Insurance tax
  • Required employee retirement contributions

Note → Living expenses like rent, utilities, or food are not subtracted when calculating disposable earnings.

Limits on Garnishment Amounts

Federal law does put a limit on wage garnishments to make the ground fair. The garnished amount must be the smaller of:

  1. 25% of disposable earnings, or
  2. The amount exceeds 30 times the federal minimum wage

State Wage Garnishment Rules

Wage garnishment laws vary significantly from one state to another. Some states follow federal rules, while others impose stricter limits or additional protections. When you have a top-level understanding of your state’s regulations, it would be much easier to know how garnishments might affect your earnings.

Key Points About State Laws

  • Variability: Some states impose stricter limits than federal law, reflecting regional differences in cost of living and wages.
  • Exceptions: Garnishment rules may differ for debts like child support, alimony, unpaid taxes, or student loans, which often have higher garnishment limits.
  • State-Specific Details: Each state may add exemptions or additional protections.

Below are highlights from several states’ wage garnishment laws:

StateWage Garnishment Rules
AlaskaAdditional exemptions under the Alaska Exemptions Act.
ArkansasFollows federal law; laborers and mechanics have extra protections.
CaliforniaLesser of 25% disposable earnings or disposable earnings minus 40x California’s minimum wage.
ConnecticutLesser of 25% disposable earnings or disposable earnings minus 40x federal/Connecticut minimum wage (whichever is greater).
D.C.Lesser of 25% disposable earnings or disposable earnings minus 40x the state’s hourly minimum wage; exemptions increase annually with cost of living.
HawaiiFollows federal or Hawaii-specific calculation (5% of first $100, 10% of second $100, and 20% of remainder). Federal limits apply if exceeded.
IllinoisStrict limit. Lesser of 15% gross wages or disposable earnings minus 45x Illinois’ minimum wage.
IndianaFollows federal law but allows reductions to 10% of disposable earnings for the first payment.
IowaAnnual garnishment limits based on income: e.g., $800 for $16,000-$23,999 income; 10% of annual income for $50,000 or more.
MaineFollows federal law but uses the greater of 40x federal/state minimum wage for exemptions.
MarylandGarnishment rules vary by county. Local legal consultation is recommended.
MassachusettsLesser of 15% gross wages or disposable earnings minus 50x federal/state minimum wage (whichever is greater).
MinnesotaLesser of 25% disposable earnings or disposable earnings minus 40x federal minimum wage.
MississippiFollows federal rules but prohibits garnishment within the first 30 days of a garnishment order.
MissouriExtra protection for heads of household. Lesser of 10% disposable earnings or disposable earnings minus 30x federal minimum wage.
NevadaLesser of 25% disposable earnings or disposable earnings minus 50x federal hourly minimum wage.
New HampshireGarnishments are not continuous. Lesser of 25% disposable earnings or disposable earnings minus 50x federal hourly minimum wage.
New Jersey10% disposable earnings if earnings ≤ 250% federal poverty level; 25% for others.
New MexicoLesser of 25% disposable earnings or disposable earnings minus 40x federal hourly minimum wage.
New YorkLesser of 10% gross wages or 25% disposable earnings; wages below 30x NY minimum wage cannot be garnished.
North CarolinaLimits garnishment to 10% of gross wages.
PennsylvaniaOnly allows garnishment for specific debts (e.g., taxes, child support, student loans, etc.).
South CarolinaOutlaws wage garnishment for consumer debts.
South DakotaLesser of 20% disposable earnings minus $25/dependent or disposable earnings minus 40x federal minimum wage + $25/dependent.
TennesseeFollows federal limits but adds $2.50 per dependent/week for individuals supporting minor children.
TexasAllows garnishment only for taxes, alimony, child support, and student loans.
VirginiaLesser of 25% disposable earnings or disposable earnings minus 40x federal hourly minimum wage.
WashingtonLesser of 25% disposable earnings or disposable earnings minus 35x federal hourly minimum wage; exceptions for child support.
West VirginiaLesser of 20% disposable earnings or disposable earnings minus 30x federal hourly minimum wage.
WisconsinLesser of 20% disposable earnings or disposable earnings minus 30x federal hourly minimum wage.

How to Calculate Garnishments for Debts?

When you evaluate wage garnishment, you need to be double specific about the numerous federal and state rules (covered earlier in this blog). With that foundation, we can now move on to calculating garnishment amounts:

Determine Disposable Income

Disposable income is the portion of earnings left after mandatory deductions like taxes, Social Security, and Medicare. Start by calculating it from the employee’s gross income, including salary, bonuses, and commissions, by subtracting these required deductions.

Apply Garnishment Limits

Determine the garnishment amount based on the employee’s disposable income. Refer to the limits we’ve discussed earlier in this blog to ensure compliance with federal and state laws. These rules will guide you in calculating the correct amount to withhold.

Handle Multiple Garnishments

When multiple garnishment orders are in place, follow the priority rules. We’ve outlined these priorities in the table above, where different garnishment types were discussed. Refer to that section to ensure compliance while managing each order accordingly.

Consequences of Noncompliance

It’s just a known omen that when you fail to handle wage garnishments, it can lead to piles of financial, legal, and reputational consequences for employers. This is when you need to step in and take charge of the potential liabilities, adopting a proactive approach to compliance to uphold the same level of trust with employees.

Financial Penalties

Employers who mishandle wage garnishments can face hefty fines. For instance, under Illinois law:

  • A penalty of $100 per day applies if child support is not withheld within 7 days of the due date.
  • The maximum penalty for a single failure can reach $10,000.
  • Repeated failures create a presumption that the employer knowingly neglected their legal obligations.

These penalties can quickly add up, especially for businesses managing multiple garnishments.

Reputational Damage

Mistakes in handling garnishments can harm an organization’s reputation in two most integral ways:

  • Employee Trust: Employees rely on accurate paycheck processing, and errors can lead to dissatisfaction and complaints.
  • Regulatory Scrutiny: Non-compliance can attract attention from federal or state authorities, resulting in further penalties or worse, audits.

Strategic Compliance: The Path to Risk Reduction

Given how sophisticated wage garnishment laws are across states, manual handling can overwhelm HR and payroll teams. This is exactly when employers should prioritize strategic compliance to manage this burden effectively.
Key strategies include:

  • Leveraging Technology: Automated systems can track state-specific laws and ensure accurate processing.
  • Partnering with Experts: Compliance partners, such as Hopkins CPA Firm, can take over the administrative complexity, allowing HR and payroll to focus on employee engagement and retention.

Also Read→ What Happens If You Don’t Pay Taxes?

Employee Rights and Protections

Wage garnishment involves elaborate legal rights that protect employees while allowing creditors to recover debts. Here’s a handful of them:

  1. Protection from Termination: Federal law protects employees from being fired over a single garnishment, but no such protection exists for multiple garnishments, except in some states.
  2. Wage Limits: Garnishments are capped at 25% of disposable income to provide enough breathing room to employees.
  3. Right to Challenge: Employees can contest garnishment orders, explain their situation, and negotiate alternatives.
  4. State-Specific Rules: Laws vary by state, with some offering stricter limits or more protections.
  5. Notification Requirement: Employees must receive written notices about garnishments, including details on their rights to challenge the process.

While federal law offers basic protections, employees with multiple garnishments face fewer safeguards. This is when you take external help—bring someone who knows what you are caught up in. Speaking of help, Hopkins CPA Firm ensures compliance with garnishment laws and protects your rights with precision and care.

Challenging or Modifying Garnishment Orders

Employees have multiple legal options to contest or modify wage garnishment orders, protecting their financial interests and ensuring fair treatment.

  • Claim an Exemption: If garnishment makes it hard to meet basic needs, employees can file a Claim of Exemption by providing proof of financial hardship, like income and expense records. The court decides if the garnishment is excessive.
  • Challenge the Order: Employees can dispute garnishments by identifying errors, questioning debt accuracy, or proving the statute of limitations has expired. Successful challenges may halt the garnishment.
  • Negotiate with Creditors: Directly working with creditors to create payment plans or reduce the debt amount can prevent or modify garnishments.
  • Understand Legal Protections: Federal and state laws cap garnishment amounts and protect certain income types, helping employees retain essential funds while ensuring creditors follow the rules.
  • Prepare for Hearings: Garnishment hearings let employees present their financial situation. Organized records and clear explanations of financial hardships can influence court decisions.

Get Help From a Team of Former IRS Agents and Wage Garnishment Specialists!

As we have covered the rules, limits, and priorities that govern multiple wage garnishments and answered, “Can you have multiple garnishments?” The real question is: What can you do next to regain control?

Start by knowing that you are not powerless.

One important step many overlook is communicating with your employer. While garnishments can feel isolating, employers often have resources, such as financial counseling or HR support, to help you get through the situation.

This is where Hopkins CPA Firm helps. Our top specialists review garnishment orders for errors, stay updated on changing laws, and provide clear, practical advice to protect your income.

Reach out to us today!

FAQs

Can creditors garnish my wages if I'm self-employed?
Creditors are generally unable to garnish your income in the usual collection model. This is because most states have characterized “wages” to mean remuneration paid by an employer to an employee. Since self-employed people do not get compensated under any wage structure laid down by their employees, then applying the standard wage garnishment mechanism becomes challenging.
With bankruptcy, one can stop all sorts of wage garnishments simultaneously without any delay. If you file for bankruptcy, there is an automatic stay order that stops most of the creditors from collecting any debt, including wage garnishments. At the same time, your employer would receive notifications on such orders and thus be obliged by law to halt deductions meant for such debts out of your salary.

Yes, in many states, employers can charge a small administrative fee for processing garnishment orders, even if you have multiple garnishments. However, this fee must follow specific rules. For instance, under federal law, your total deductions—including the garnishment and the fee—cannot reduce your paycheck below the minimum wage or required overtime pay.

State laws vary, making it tricky to know what’s allowed. Hopkins CPA Firm simplifies this by clarifying state-specific rules and ensuring garnishment fees comply with all regulations, protecting your earnings. So, get in touch when you can!

If your disposable earnings are less than the total amount required for multiple garnishments, the garnished amount is distributed according to specific rules:

  1. Child Support Takes Priority: Current child support payments are addressed first, ahead of arrearages or other garnishments like alimony.
  2. Allocation Methods:
    • Prorating Formula: Each child support order gets a percentage based on its share of the total support owed.
    • Equal Sharing Formula: The disposable income is divided equally among the orders.
  3. State Guidelines: If the income is insufficient to meet all orders, the allocation must follow state-specific requirements. Additional resources like the Income Withholding Matrix and Lump Sum Matrix provide guidance.

Unpaid portions of garnishments remain due and may be collected later.

Yes, garnishment rules may differ based on the type of debt. While many types of income may be exempt from garnishment, exceptions exist for debts like child support, alimony, unpaid taxes, or student loans, which often have higher garnishment limits..

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Joe has 25+ years as a Certified Public Accountant licensed in the State of Texas and solving IRS problems. Current member with the American Institute of Certified Public Accountants (AICPA), Texas Society of CPA’s (TSCPA), National Society of Accountants (NSA), Bachelor’s degree in accounting (BBA), Master’s degree in Business Administration (MBA) at Texas A&M Corpus Christi. Experience in a variety of industries as Controller, CFO and tax resolution issues for both business and personal tax cases. 

At Hopkins CPA Firm, we adhere to a stringent editorial policy emphasizing factual accuracy, impartiality and relevance. Our content, curated by experienced industry professionals. A team of experienced editors reviews this content to ensure it meets the highest standards in reporting and publishing.

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Author

Joe has 25+ years as a Certified Public Accountant licensed in the State of Texas and solving IRS problems. Current member with the American Institute of Certified Public Accountants (AICPA), Texas Society of CPA’s (TSCPA), National Society of Accountants (NSA), Bachelor’s degree in accounting (BBA), Master’s degree in Business Administration (MBA) at Texas A&M Corpus Christi. Experience in a variety of industries as Controller, CFO and tax resolution issues for both business and personal tax cases.