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Dismissing an employee with a garnishment

Legal Requirement: If you dismiss an employee with a garnishment order for any reason, you are required by law to notify the collecting agency immediately. State guidelines vary but it is recommended you contact the agency 5 days after you learn that an employee will cease employment or within 5 days after dismissal, whichever occurs earlier.

Important: For dismissal payrolls, the garnishment is not deducted from the employer bank account and the company is responsible for making the payment to the agency.

This form from the U.S. Department of Health & Human Services is accepted as fulfillment of the cessation of employment requirements for some states but not all. States may require additional information or specific employer action.

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