What Does A Garnishment Look Like On A Pay Stub? Employer Guide

When a garnishment order lands on your desk, your payroll changes right away. What does a garnishment look like on a pay stub, and how do you handle it? You may face penalties, lawsuits, or personal liability if you get this wrong.

This guide covers the codes, limits, and steps for processing garnishments correctly with a reliable pay stub generator.

Key Takeaways

• Garnishments appear in the deductions section of a pay stub, listed as codes like CHLD SUP, IRS LEVY, or WAGE GARN
• Federal law caps most consumer garnishments at 25% of disposable earnings under the Consumer Credit Protection Act
• Codes vary by payroll system. ADP, Paychex, and Workday label garnishments differently
• Employers must comply with garnishment orders or face fines and legal liability
• Garnishments do not reduce taxable income reported on Form W-2

What Does a Garnishment Look Like on a Pay Stub?

A garnishment appears in the deductions section of a pay stub. You'll find it listed below taxes and insurance. It shows a code (such as CHLD SUP, IRS LEVY, or WAGE GARN), the amount taken for that pay period, and, often, a year-to-date total.

How is it different from other deductions? Voluntary benefits, such as health insurance and 401k, are chosen by the employee. Garnishments are not. If you see an unfamiliar line item, check whether it's a garnishment on paystub records or a benefit you elected.

Each entry has three parts:

• A code or label
• The dollar amount for the current period
• A running total.

Some payroll systems also show a reference number from the court order.

What does wage garnishment look like on paycheck records? It depends on your payroll software. The label and format vary, but it always shows up in the deductions area. Will wage garnishment show up on my paystub? Yes. Every order processed through payroll appears as a deduction.

Common Garnishment Codes: What Does a Garnishment Look Like on a Pay Stub by System

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Payroll systems use abbreviated codes to identify garnishment types. If you or your employees are asking, "What is garn on paystub records?", here's a reference guide:

These codes aren't the same across all payroll platforms. ADP labels child support as "CS" or "CHLD SUPP" on their pay stub templates. Paychex uses "GARN" and a number for multiple orders. Workday shows the court case number or agency reference. If you see CRED GARN CGPN on paystub records, it means a creditor garnishment payment notice for consumer debt.

Types of Wage Garnishments and Percentage Limits

The Consumer Credit Protection Act (CCPA), specifically Title III, sets federal limits on how much employers can withhold. Here's what you need to know for compliance:

Understanding "What does a garnishment look like on a pay stub?" also means knowing the limits. Four states ban consumer wage garnishment. They include:

• North Carolina
• South Carolina
• Pennsylvania
• Texas

Child support and IRS levies still apply in these states.

Example: An employee earns $800/week in disposable earnings (gross pay minus taxes, Social Security, and Medicare). For consumer debt, the max is $200 (25% of $800). For child support with no other dependents, the max is $480 (60% of $800).

Employer Responsibilities for Wage Garnishments

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1. Notify the employee in writing. For federal levies, use Form 668. Respond within one week of receiving the order.
2. Update your payroll system. Enter the garnishment details and ensure payments are sent to the correct agency or creditor.
3. Follow priority rules for multiple garnishments. Child support takes precedence over all other garnishments. Tax levies come second. Consumer creditor garnishments are last.
4. Stop withholding when appropriate. Garnishments end when you receive Form 668-D (federal levy release), a state termination notice, or a creditor's release order.

Now that you know "What does a garnishment look like on a pay stub?" and how to process it, keep one more rule in mind. The CCPA bars you from firing an employee over a single garnishment. This rule doesn't cover workers with multiple garnishments.

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Does a Garnishment Show on Your W-2?

No, garnishments don't appear as a line item on Form W-2. Box 1 reports your full gross wages, no matter what. Garnishments cut your take-home pay but don't reduce your taxable income. Tax refunds can be garnished through the Treasury Offset Program.

Do garnishments show on W2 forms as a deduction? No. The W-2 shows total pay as if no garnishment had happened. If you need to calculate W-2 wages from a pay stub, remember that garnishments don't affect Box 1. Only the net pay line on the pay stub shows the real take-home amount after withholding.

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Wrap Up

What does a garnishment look like on a pay stub? Check the deductions section for involuntary withholding codes. The exact labels depend on your payroll software, but every garnishment shows the type and amount. For employers, compliance is not optional. Having accurate payroll can protect your business and your workers.

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