Automate wage garnishment withholding order entry and remittance tracking across a multi-state payroll

Steps

1. Upon receiving a withholding order (child support, federal tax levy, student loan, creditor), parse the order to extract: employee identifier, withholding type, amount or percentage, maximum withholding cap, and remittance payee details
2. Verify the withholding amount does not exceed federal CCPA limits: for most debts the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage — per DOL Fact Sheet #30
3. For IRS tax levies, apply the IRS Publication 1494 exempt-amount table for the employee's filing status and pay frequency to calculate the exempt amount; withhold all earnings above the exempt threshold
4. Enter the garnishment deduction into your payroll system using the appropriate deduction code per order type; in ADP submit via the Payroll Data Input API batch with the correct priority sequencing (child support first by federal law)
5. After each payroll run, extract garnishment deduction totals per employee and generate remittance records for each payee (state disbursement unit, IRS, etc.)
6. Track order expiration dates and termination notices; remove or deactivate the deduction code when an order ends