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Process Garnishments, Levies and Holds for Workers

Policy: 

As garnishments, levies and holds are received by F/EA on behalf of participant employers, F/EA Payroll Department staff review the garnishment to ensure that the employer and workers are active in the program.

After verifying that the employer and workers on the garnishment are active in the program, Payroll Department staff copy applicable documents, maintain originals in a locked file drawer at F/EA and submit garnishment documents to reporting agent.
 
F/EA deducts garnishment amounts from applicable workers per garnishment instructions and state and federal garnishment laws. After deducting garnishment amounts from workers pay, F/EA creates checks payable to the garnishing agency. 
 
F/EA sends checks payable to garnishing agencies Payroll Department. Payroll Department reconciles checks to Payment Check Listing, completes garnishment vouchers, prints garnishment check pay stub and mails check and vouchers to garnishing agency per garnishment instructions.
 
All garnishment, levy and holds checks are mailed to the garnishing agency within one business day of the pay date on which the garnishment is processed.
Procedure: 

 

  1. When garnishment, levy or hold notices (hereafter referred to generally as “garnishments”) are received via mail, the notices are immediately date stamped and delivered to the Payroll Department
  2. <<Staff Title>> reviews each garnishment and confirms all information
  3. <<Staff Title>> first checks to see if the workers listed on the garnishment is still working for the participant
  4. Log in to Payroll System
  5. Enter user name and password
  6. Search for employer by last name listed for employer on garnishment, levy or hold
  7. After identifying participant in Payroll System, write participant number on garnishment form
  8. Check to see if the workers listed on the garnishment has been terminated
  9. If the workers has been terminated:
  10. Review the termination reason and date
  11. If the workers listed on the garnishment has been terminated, complete the garnishment request with a statement that the workers has been terminated and the date of termination
  12. Copy the garnishment
  13. Store a copy of the garnishment in the <<insert where completed garnishments are stored>>
  14. Mail the original garnishment to the garnishing agency with the statement that the workers has been terminated
  15. If the workers listed on the garnishment form has not been terminated, make a copy of the garnishment form
  16. Place the original garnishment in the locked <<insert where garnishments are stored>>
  17. Provide the copy of the garnishment to <<Staff Title>>
  18. <<Staff Title>> sets up deductions for workers per garnishment instructions and garnishment regulations in Payroll System
  • The garnishment notice states the amount to deduct from the workers’s pay and for how long

 19.  <<Insert Process to enter garnishment info into the Payroll System>>

 20.  Each time the workers in question is paid, the system makes a deduction per the garnishment set-up

 21.  Each day that payroll is processed, garnishment checks are cut for all deducted amounts

 22.  Each garnishment check is made payable to the agency as stated on the garnishment form

 23.  <<Staff Title>> reviews all printed garnishment checks to ensure all checks were received as appropriate

 24.  <<Insert process for <<Staff Title>> to ensure all garnishment checks were cut>>

 25.  <<Staff Title>> verifies that the name and amount on each garnishment check is correct

 26.  After verifying checks, <<Staff Title>> provides checks to <<Staff Title>>

 27.  <<Staff Title>> obtains the garnishment voucher for each check from the locked <<location>> file drawer

 28.  Copy voucher

 29.  <<Staff Title>> copies check to save with copy of voucher

 30.  <<Staff Title>> completes voucher with check information

 31.  <<Staff Title>> copies completed voucher and printed pay stub

 32.  Copy of voucher and pay stub are stored in workers folder in locked <<location>> file drawer

 33.  <<Staff Title>> mails completed voucher and original check to address on voucher

 34.  When a garnishment has been completely paid and no further payments are required, scan entire workers garnishment file and save to participant folder

 35.  Checks and vouchers are stored for a minimum of 7 years per File Retention Policy

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. Lead <<Staff Title>> reviews information on garnishment and compares it to information in payroll systems to ensure workers is working for participant
  2. Original garnishment is saved in locked F/EA  file drawer for a minimum of 7 years per File Retention Policy
  3. <<Staff Title>> verifies garnishment checks to verify accuracy of garnishment check
  4. <<Staff Title>> copies completed voucher and places voucher copy and pay stub in workers’s file folder in locked “Child Support and Levy” file drawer

Garnishment checks and vouchers are scanned and stored to a participant's scan file for a minimum of 7 yeras per File Retention Policy.