Money problems can affect anyone at any time. As an employer, handling wage garnishment notices requires both professionalism and sensitivity. Your employees trust you with their personal information, and delivering news about wage garnishments needs careful thought and consideration.
Each employee situation brings unique challenges that require different approaches. The right letter can help maintain workplace relationships while meeting legal requirements. These sample letters show various ways to communicate garnishment notices clearly and professionally, keeping both compliance and employee dignity in mind.
Sample Employee Notification of Garnishment Letters
Here are carefully crafted letters to help you notify employees about wage garnishments while maintaining professionalism and empathy.
Letter 1: Standard Garnishment Notice for First-Time Recipients
*Subject: Important Notice Regarding Your Wages
Dear Mr. Thompson,
This letter serves as official notification that ABC Company received a wage garnishment order from the District Court of Harris County on September 15, 2024. The garnishment requires us to withhold $450.00 from your monthly wages starting with your next pay period.
The court order states this garnishment relates to unpaid credit card debt. As your employer, we must comply with all legal wage garnishment orders. The deductions will continue until we receive a court order to stop the garnishment or until the total amount of $5,400.00 has been paid.
Please note that under federal law, we cannot take any adverse action against you because of this garnishment order. Your position and status with the company remain unchanged. We understand this may create financial challenges and encourage you to review the garnishment order details carefully.
You have the right to dispute this garnishment through legal channels if you believe it was issued incorrectly. For questions about the garnishment amount or terms, please contact the court directly at (555) 123-4567 or consult with a legal advisor.
Should you need to discuss how this affects your payroll or have questions about the withholding process, please contact Human Resources at extension 2546.
Best regards,
Michael Peterson
Director of Human Resources
ABC Company
Phone: (555) 987-6543
Email: m.peterson@abccompany.com*
Letter 2: Garnishment Notice with Payment Plan Options
*Subject: Wage Garnishment Notice and Available Options
Dear Ms. Rodriguez,
This letter confirms that XYZ Manufacturing received a wage garnishment order from the Department of Education on September 18, 2024. The order requires withholding 15% of your disposable earnings for student loan repayment.
Based on your current salary, this amounts to approximately $375.00 per biweekly paycheck. We recognize this reduction may affect your budget planning. While we must follow the garnishment order, several options might help ease the transition:
- You can modify your current voluntary deductions such as 401(k) contributions or health savings account payments temporarily
- Our payroll system allows splitting the garnishment amount between your two monthly paychecks
- You may be eligible for a hardship review if the deduction creates severe financial difficulty
The garnishment will begin with your September 30 paycheck unless you provide documentation showing the order has been modified or dismissed by the Department of Education. The total amount to be collected is $15,000.00.
Your rights under federal law prohibit discrimination or termination based on a single wage garnishment. Our Employee Assistance Program offers free financial counseling services that might help during this adjustment period.
Please review the attached garnishment order copy for complete details. You maintain the right to dispute this order through appropriate legal channels.
Contact the HR Benefits team at extension 3578 to discuss payment arrangements or use our confidential online portal at benefits.xyzmanufacturing.com.
Sincerely,
Sarah Chen
Payroll Manager
XYZ Manufacturing
Direct Line: (555) 234-5678
Email: s.chen@xyzmanufacturing.com*
Letter 3: Multiple Garnishment Notice
*Subject: Notice of Additional Wage Garnishment Order
Dear Mr. Jackson,
This letter notifies you that Global Tech Solutions has received a second wage garnishment order dated September 20, 2024, from the State Child Support Enforcement Agency. As you know, we currently process a garnishment for your federal student loans.
Federal law sets specific limits on the total amount that can be garnished from your wages. The maximum combined withholding cannot exceed 25% of your disposable earnings or the amount by which your weekly wages exceed 30 times the federal minimum wage, whichever is less.
Your current weekly disposable income is $1,200.00. The new child support order requires a withholding of $300.00 per week. Combined with your existing student loan garnishment of $150.00 per week, the total weekly withholding would be $450.00.
Since this exceeds the legal maximum withholding limit of $300.00 (25% of your disposable earnings), we must adjust the amounts. Child support garnishments take priority by law. Therefore, starting October 1, 2024:
- Child support withholding: $300.00 weekly
- Student loan withholding: Temporarily reduced to $0.00
The student loan garnishment will resume if the child support order ends or is modified. You may want to contact your student loan servicer to discuss alternative payment arrangements during this period.
You have the right to dispute either garnishment through appropriate legal channels. The Human Resources department can provide copies of both garnishment orders for your records.
Our benefits team offers free financial planning sessions that might help you manage these obligations. You can schedule an appointment through the employee portal.
Regards,
David Martinez
Payroll Director
Global Tech Solutions
Office: (555) 345-6789
Email: d.martinez@globaltechsolutions.com*
Letter 4: Garnishment Notice with Retirement Account Levy
*Subject: Legal Order Affecting Your Retirement Account
Dear Ms. Thompson,
Green Valley Industries received a retirement account levy order from the Internal Revenue Service on September 21, 2024. This order affects your 401(k) account and requires immediate action.
The IRS levy demands payment of $12,500.00 from your retirement account for unpaid taxes from tax year 2022. Unlike regular wage garnishments, this levy requires a one-time withdrawal from your retirement savings rather than ongoing paycheck deductions.
This withdrawal may have significant tax implications:
- The distribution counts as taxable income for 2024
- Early withdrawal penalties may apply if you are under age 59½
- The withdrawal might push you into a higher tax bracket
You have 21 days from the date of this notice to take action before we must process the levy. During this time, you can:
- Contact the IRS to set up a payment plan
- Pay the amount directly to the IRS to release the levy
- Provide proof the tax debt has been satisfied
- File an appeal with the IRS if you believe the levy is incorrect
Our retirement plan administrator, Fidelity Benefits, has temporarily frozen your account to prevent any transactions until this matter resolves. However, your regular payroll contributions will continue unless you request a change.
The company benefits specialist can schedule a meeting to explain how this levy affects your retirement planning and discuss potential options for rebuilding your savings afterward.
Let us know if you need any documentation to assist with resolving this matter with the IRS.
Sincerely,
Amanda Wright
Benefits Manager
Green Valley Industries
Tel: (555) 456-7890
Email: a.wright@greenvalley.com*
Letter 5: State Tax Authority Garnishment Notice
*Subject: State Tax Garnishment Notice and Information
Dear Mr. Anderson,
This letter informs you that Silver Stream Enterprises has received a wage garnishment notice from the State Department of Revenue dated September 22, 2024. The garnishment relates to unpaid state income taxes for tax year 2023.
The garnishment order requires us to withhold 10% of your gross wages, which amounts to $250.00 per weekly paycheck. This deduction will begin with your September 30 paycheck and continue until the total amount of $8,750.00 is collected or we receive a release from the state.
Your take-home pay will change as follows: Current gross weekly pay: $2,500.00 State tax garnishment: $250.00 Remaining deductions stay the same New estimated take-home pay: $1,750.00
The state provides several programs that might help resolve this situation:
- Tax debt installment agreements
- Penalty abatement requests
- Hardship status applications
- Offer in compromise programs
The state taxpayer advocate office offers free assistance with these programs. Their contact information appears on the garnishment notice, which we can provide upon request.
Please note that you may have the right to request a hearing if you believe the garnishment is incorrect. The deadline for requesting a hearing is October 6, 2024.
Our payroll department stands ready to provide any necessary documentation or payment records you might need to resolve this matter with the state.
Best regards,
Robert Turner
Finance Director
Silver Stream Enterprises
Direct: (555) 567-8901
Email: r.turner@silverstream.com*
Letter 6: Federal Tax Levy Notice
*Subject: Notice of IRS Wage Levy Implementation
Dear Ms. Martinez,
Purple Mountain Technologies received a Notice of Levy from the Internal Revenue Service on September 23, 2024. The notice requires us to withhold a portion of your wages to satisfy outstanding federal tax obligations.
The IRS levy takes precedence over most other garnishments except child support. Starting with your next pay period, we must calculate your exempt amount based on your filing status and claimed dependents, then withhold the remainder of your wages.
Based on the information in our payroll system: Filing Status: Single Dependents: 2 Pay Frequency: Bi-weekly Standard Deduction Amount: $850.00
Your current bi-weekly gross pay of $3,200.00 will be affected as follows: Exempt amount: $850.00 Amount subject to levy: $2,350.00 Regular deductions (taxes, insurance): $450.00 Estimated take-home pay: $850.00
The levy remains in effect until:
- The IRS sends us a release notice
- The tax debt of $22,500.00 is fully paid
- You provide proof of an alternate payment arrangement
The IRS Taxpayer Advocate Service provides free assistance to taxpayers facing hardship. They can help you:
- Set up payment plans
- Request penalty abatement
- Apply for hardship status
- Negotiate tax debt settlements
We understand this significant reduction in take-home pay creates challenges. Our Employee Assistance Program includes financial counseling services that might help during this period.
Respectfully,
Patricia Lee
HR Director
Purple Mountain Technologies
Phone: (555) 678-9012
Email: p.lee@purplemountain.com*
Letter 7: Student Loan Wage Garnishment Notice
*Subject: Department of Education Wage Garnishment Notice
Dear Mr. Reynolds,
Ocean Blue Corporation received a wage garnishment order from the U.S. Department of Education on September 24, 2024. This order requires us to withhold a portion of your wages for defaulted student loan debt.
The Department of Education can garnish up to 15% of your disposable pay. After reviewing your current earnings and regular deductions, we calculated the following:
Monthly gross pay: $4,800.00 Regular deductions: $1,200.00 Disposable pay: $3,600.00 Maximum garnishment (15%): $540.00
The garnishment of $540.00 monthly will start with your September 30 paycheck. The total amount to be collected is $18,500.00. This garnishment continues until:
- The debt is fully paid
- The Department of Education releases the order
- You make alternative payment arrangements
The Department of Education offers several options to stop wage garnishment:
- Loan rehabilitation programs
- Income-based repayment plans
- Consolidation options
- Hardship relief programs
You can contest this garnishment if you believe:
- The loan does not belong to you
- The loan was paid already
- You are totally disabled
- You filed for bankruptcy
- The school closed before you completed the program
The deadline to request a hearing is October 8, 2024. Filing a hearing request may temporarily stop the garnishment while your case gets reviewed.
Our HR department can provide copies of the garnishment order and supporting documentation for your records.
Kind regards,
Thomas Wilson
Payroll Supervisor
Ocean Blue Corporation
Tel: (555) 789-0123
Email: t.wilson@oceanblue.com*
Letter 8: Medical Payment Garnishment Notice
*Subject: Hospital Lien Wage Garnishment Implementation
Dear Ms. Parker,
This letter serves as notification that Sunrise Manufacturing has received a wage garnishment order from County General Hospital through the Municipal Court. The order, dated September 25, 2024, relates to unpaid medical bills from your hospital stay in March 2024.
The court order requires withholding of 20% of your disposable earnings until the medical debt of $9,500.00 is satisfied. We calculated your garnishment amount as follows:
Bi-weekly gross pay: $2,800.00 Standard deductions: $700.00 Disposable earnings: $2,100.00 Garnishment amount (20%): $420.00
The deductions will begin with your October 15 paycheck. Your new estimated bi-weekly take-home pay will be $1,680.00. The hospital has agreed to apply payments according to this schedule:
- Principal balance reduction: 85%
- Interest charges: 10%
- Administrative fees: 5%
County General Hospital offers financial assistance programs that might help reduce the total amount owed:
- Income-based discount programs
- Medical hardship applications
- Payment plan arrangements
- Charity care programs
The court allows you to challenge this garnishment if you can show:
- The bills were paid
- The charges were incorrect
- The services were not received
- You have filed bankruptcy
- The statute of limitations has expired
Our benefits department can provide information about our company’s medical bill negotiation service, which has helped other employees reduce their medical debt obligations.
Sincerely,
Jennifer Brooks
HR Manager
Sunrise Manufacturing
Direct Line: (555) 890-1234
Email: j.brooks@sunrisemfg.com*
Letter 9: Credit Card Judgment Garnishment Notice
*Subject: Wage Garnishment Order from Credit Card Company
Dear Mr. Coleman,
Golden Circle Associates received a wage garnishment order on September 26, 2024, from the District Court regarding a judgment obtained by Capital Credit Corporation. This judgment relates to an unpaid credit card balance.
The court order requires us to withhold 25% of your disposable earnings or the amount by which your weekly wages exceed 30 times the federal minimum wage, whichever is less. Based on your current earnings:
Weekly gross wages: $1,400.00 Required deductions: $300.00 Disposable earnings: $1,100.00 Maximum garnishment allowed: $275.00
The $275.00 weekly garnishment begins October 1, 2024, and continues until the judgment amount of $7,800.00 is paid in full. Your estimated weekly take-home pay will be $825.00.
Capital Credit Corporation provided these options to stop the garnishment:
- Lump-sum settlement at 80% of balance
- Six-month payment plan with reduced interest
- Debt consolidation program enrollment
- Hardship program application
You maintain the right to challenge this garnishment if:
- The judgment was satisfied
- The debt was discharged in bankruptcy
- The judgment expired under state law
- The creditor did not follow proper procedures
- The calculation of the debt is incorrect
Our Employee Assistance Program includes credit counseling services that can help you:
- Review your credit reports
- Create a budget plan
- Negotiate with creditors
- Understand debt settlement options
Please contact HR if you need documentation of your wages or garnishment payments for your records.
Regards,
Kevin Morris
Payroll Manager
Golden Circle Associates
Phone: (555) 901-2345
Email: k.morris@goldencircle.com*
Letter 10: Consumer Debt Garnishment Notice
*Subject: Notice of Consumer Debt Wage Garnishment
Dear Ms. Foster,
Red Oak Enterprises received a wage garnishment order dated September 27, 2024, from the County Civil Court. The order stems from a judgment obtained by Premier Finance Services regarding an unpaid personal loan.
The court mandates withholding 15% of your disposable income until the judgment balance of $6,400.00 is satisfied. We calculated your garnishment as follows:
Monthly gross salary: $5,200.00 Standard deductions: $1,300.00 Disposable income: $3,900.00 Monthly garnishment (15%): $585.00
The garnishment starts with your October 15 paycheck. Your monthly take-home pay will decrease from $3,900.00 to $3,315.00. Premier Finance Services allocated the payments this way:
- Principal reduction: 80%
- Interest charges: 15%
- Legal fees: 5%
Premier Finance Services offers these resolution options:
- Debt settlement at 70% of balance
- Extended payment arrangements
- Interest rate reduction program
- Financial hardship forbearance
The court allows you to dispute the garnishment for these reasons:
- Identity theft or fraud
- Incorrect judgment amount
- Proper notice not received
- Exempt income being garnished
- Statute of limitations expired
Our company credit union provides free financial counseling and debt management assistance to all employees. They might help identify options to resolve this matter more quickly.
Best regards,
Susan Taylor
HR Director
Red Oak Enterprises
Tel: (555) 012-3456
Email: s.taylor@redoak.com*
Letter 11: Alimony Payment Garnishment Notice
*Subject: Court-Ordered Alimony Wage Garnishment Notice
Dear Mr. Hughes,
Blue Ridge Technologies received a wage withholding order from the Family Court on September 28, 2024. This order requires us to deduct alimony payments from your wages as specified in your divorce decree.
The court order establishes these withholding terms: Monthly alimony payment: $1,200.00 Duration: 24 months Total obligation: $28,800.00 Start date: October 1, 2024
Your current monthly earnings will be affected as follows: Gross monthly salary: $6,800.00 Regular deductions: $1,700.00 Alimony withholding: $1,200.00 New take-home pay: $3,900.00
The Family Court requires direct deposit of payments to your former spouse’s account. We must start these deductions immediately and continue until:
- The court modifies the order
- The total obligation is satisfied
- The court terminates the requirement
- Your employment ends
You may petition the court to modify this order if you experience:
- Significant income reduction
- Medical emergencies
- Job loss or disability
- Retirement
- Former spouse’s remarriage
Our legal assistance benefit can connect you with family law attorneys who offer discounted services to employees needing help with support order modifications.
Sincerely,
Margaret Collins
Benefits Administrator
Blue Ridge Technologies
Direct: (555) 123-4567
Email: m.collins@blueridge.com*
Letter 12: Property Tax Garnishment Notice
*Subject: County Property Tax Wage Garnishment Notice
Dear Ms. Bailey,
Diamond Valley Corporation received a wage garnishment order from the County Tax Assessor’s Office dated September 29, 2024. This order relates to delinquent property taxes for tax years 2022 and 2023.
The County requires withholding of $650.00 monthly until the past-due amount of $7,800.00 is collected. Your monthly pay will be affected as follows:
Current gross pay: $5,400.00 Standard deductions: $1,350.00 Property tax garnishment: $650.00 New take-home amount: $3,400.00
The garnishment begins October 15, 2024. The County Tax Office applies payments in this order:
- Current year taxes: 40%
- Prior year taxes: 35%
- Penalties and interest: 15%
- Collection fees: 10%
The County offers several programs that might help:
- Payment plan options
- Penalty waiver requests
- Senior citizen tax deferrals
- Homestead exemption review
- Property value appeals
You can challenge this garnishment if:
- The property taxes were paid
- The assessment was incorrect
- You no longer own the property
- You filed for bankruptcy
- The amount differs from tax records
Our employee legal service benefit includes property tax consultation services that might help resolve this situation.
Best regards,
Daniel White
Payroll Director
Diamond Valley Corporation
Phone: (555) 234-5678
Email: d.white@diamondvalley.com*
Letter 13: Business Debt Garnishment Notice
*Subject: Commercial Judgment Wage Garnishment Notice
Dear Mr. Kennedy,
Northern Star Industries received a wage garnishment order from the Commercial Court on September 30, 2024. This order stems from a business debt judgment related to your previous small business ownership.
The court requires withholding 20% of your disposable earnings until the judgment amount of $15,600.00 is satisfied. Your bi-weekly pay will be affected as follows:
Gross bi-weekly pay: $3,800.00 Standard deductions: $950.00 Disposable earnings: $2,850.00 Garnishment amount: $570.00 New take-home pay: $2,280.00
The garnishment starts October 1, 2024. The judgment creditor, Business Capital LLC, allocates payments this way:
- Principal balance: 75%
- Accrued interest: 15%
- Attorney fees: 10%
Business Capital LLC provides these settlement options:
- Lump-sum payment at 65% of balance
- Structured payment agreement
- Business asset surrender
- Debt consolidation program
You can contest this garnishment if:
- The business debt was paid
- The judgment exceeded limitations
- Bankruptcy was filed
- Required notices were not received
- The amount is incorrectly calculated
Our legal services benefit includes small business debt counseling that might help resolve this situation more favorably.
Regards,
Rachel Morgan
HR Manager
Northern Star Industries
Direct Line: (555) 345-6789
Email: r.morgan@northernstar.com*
Letter 14: Court Fine Garnishment Notice
*Subject: Municipal Court Fine Wage Garnishment Notice
Dear Ms. Richardson,
Evergreen Solutions received a wage garnishment order from the Municipal Court dated October 1, 2024. This order relates to unpaid court fines and fees from a civil case judgment.
The court mandates withholding $425.00 bi-weekly until the total amount of $5,100.00 is paid. Your pay will change as follows:
Current bi-weekly gross: $2,600.00 Regular deductions: $650.00 Court fine garnishment: $425.00 New take-home amount: $1,525.00
The garnishment begins October 15, 2024. The court applies payments according to this schedule:
- Base fine amount: 70%
- Court costs: 20%
- Collection fees: 10%
The Municipal Court offers these programs:
- Community service options
- Payment plan arrangements
- Fine reduction requests
- Hardship consideration
- Fee waiver applications
You may challenge this garnishment if:
- The fines were paid
- The amount is wrong
- You were not properly notified
- You have filed bankruptcy
- The case was dismissed
Our Employee Assistance Program includes legal consultation services that could help you explore options for resolving these court obligations.
Sincerely,
Andrew Phillips
Payroll Supervisor
Evergreen Solutions
Tel: (555) 456-7890
Email: a.phillips@evergreen.com*
Letter 15: Professional Fee Garnishment Notice
*Subject: Professional Services Fee Garnishment Notice
Dear Mr. Harrison,
Coastal Dynamics received a wage garnishment order from the Civil Court on October 2, 2024. This order relates to unpaid professional services fees owed to Maxwell Legal Services LLC.
The court requires withholding 15% of your disposable income until the judgment amount of $8,900.00 is paid. Your monthly pay will be affected as follows:
Monthly gross salary: $7,200.00 Standard deductions: $1,800.00 Disposable income: $5,400.00 Garnishment amount: $810.00 New take-home pay: $4,590.00
The garnishment starts October 15, 2024. Maxwell Legal Services applies payments this way:
- Service fees: 80%
- Late charges: 10%
- Legal costs: 10%
The firm offers these resolution options:
- Reduced settlement amount
- Extended payment schedule
- Fee review and adjustment
- Service credit application
You can dispute this garnishment if:
- Services were not received
- Fees were already paid
- Amount is incorrectly calculated
- Proper notice was not given
- Statute of limitations expired
Our legal benefits provider offers free consultations that might help negotiate a better resolution to this matter.
Best regards,
Michelle Torres
HR Director
Coastal Dynamics
Phone: (555) 567-8901
Email: m.torres@coastaldynamics.com*
Wrap-up
These notification letters demonstrate effective ways to communicate wage garnishment requirements while maintaining employee dignity and professionalism. Each template can be customized to address specific situations and requirements, ensuring clear communication throughout the garnishment process.