To write a wage garnishment letter, you draft a short formal notice to the debtor’s employer that identifies the court judgment behind the garnishment, states the exact amount or percentage to withhold each pay period within federal and state limits, tells the employer where to send the money, and attaches a certified copy of the writ or order. The letter itself is straightforward. What makes it work is the accuracy of the numbers, the clarity of the payment instructions, and proof that the right person at the company received it.
This guide is written for a judgment creditor or a creditor’s attorney. You’ve already sued, won, and now need to redirect part of the debtor’s paycheck. The court issues the writ of garnishment; the accompanying letter to the employer typically comes from your side.
When You Don’t Draft the Letter Yourself
Federal and state agencies can initiate wage garnishment without going through court, and they use their own standardized forms rather than a letter you write. The IRS can levy wages for unpaid taxes, the Department of Education (through guaranty agencies) can garnish up to 15% of disposable earnings for defaulted student loans, and state agencies can garnish for child support through administrative procedures.1U.S. Department of Labor. Fact Sheet 30 – Wage Garnishment Protections of the Consumer Credit Protection Act The federal government uses Standard Form SF-329A for administrative wage garnishment.2U.S. General Services Administration. Wage Garnishment Letter and Important Notice to Employer If you’re a private creditor enforcing a court judgment, none of that applies to you. You draft your own letter.
What to Gather Before You Start
Every field in the letter comes from one of these inputs. Missing any of them gives the employer a reason to delay or reject the garnishment.
- The employee’s full legal name and address.
- The employer’s name, address, and the specific department or role that handles payroll or garnishments.
- The case name, case number, issuing court, and date of the judgment.
- The total amount owed, including principal, accrued interest, and any court-approved costs or fees.
- The specific dollar amount or percentage to withhold each pay period, calculated within the legal caps.
- The full name and mailing address of the payee, plus any account or reference number the employer should include with payments.
- The court order, writ of garnishment, or statute that authorizes the withholding, with a certified copy to attach.
How to Structure the Letter
The letter should read as a formal business document. Put the sender information at the top: creditor’s or attorney’s name, firm name if applicable, address, phone number, and the date. Below that, the employer’s name and address. Add a subject line referencing the employee’s name and case number so the payroll department can route it immediately.
The opening paragraph states the letter’s purpose in one or two sentences. Identify the court judgment by case name, case number, issuing court, and date, and say that the attached order requires the employer to begin withholding from the employee’s wages. Keep it direct.
The next paragraph specifies the total outstanding balance and the exact amount or percentage to be withheld each pay period. For an ordinary consumer debt garnishment, note that federal law caps the withholding at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage.3Office of the Law Revision Counsel. 15 US Code 1673 – Restriction on Garnishment Stating the cap in the letter helps the employer avoid over-withholding.
Follow that with remittance instructions. Who should the check be made payable to. Where should it be mailed. What reference number or account should appear on it. If the funds go to a court registry or intermediary rather than directly to you, say so plainly.
Close with a reference to the legal authority, a note that the relevant documents are enclosed, and a signature block. List the attachments at the bottom: the certified copy of the judgment or writ, a garnishment calculation worksheet if your jurisdiction requires one, and any exemption forms the employee is entitled to receive.
Calculating the Withholding Amount
The number you put in the letter has to survive the employer’s own recalculation. Getting it wrong is the fastest way to invite a challenge or delay compliance.
The Federal Cap for Ordinary Debt
For credit cards, medical bills, personal loans, and other ordinary consumer debts, the maximum garnishment is the lesser of two amounts: 25% of the employee’s disposable earnings for that week, or the amount by which weekly disposable earnings exceed $217.50 (30 times the $7.25 federal minimum wage).3Office of the Law Revision Counsel. 15 US Code 1673 – Restriction on Garnishment If the employee earns $217.50 or less per week in disposable income, nothing can be garnished for ordinary debt.
What Counts as Disposable Earnings
Every garnishment limit is calculated on disposable earnings, not gross pay. Disposable earnings are what remains after subtracting amounts the law requires the employer to withhold.4Office of the Law Revision Counsel. 15 US Code 1672 – Definitions Those mandatory deductions are federal income tax, state and local taxes, Social Security tax, and Medicare tax.
Voluntary deductions do not reduce disposable earnings. Health insurance premiums, 401(k) contributions, life insurance, and charitable payroll deductions all remain in the disposable earnings figure even though the employee never sees that money in a paycheck. The base for garnishment is larger than most employees expect. Commissions and bonuses count as earnings. Tips received directly from customers generally do not, because the employer never pays them as compensation.
State Limits and Other Debt Types
State law can set garnishment limits lower than the federal caps and protect a larger share of wages. Where state law allows less garnishment than federal law, the state limit controls. Check your jurisdiction before specifying a withholding amount.
Different rules apply if the debt isn’t ordinary consumer debt. Support obligations allow deeper withholding, up to 50% of disposable earnings if the employee supports another spouse or child, 60% if not, with an extra 5% available when payments are more than 12 weeks overdue.3Office of the Law Revision Counsel. 15 US Code 1673 – Restriction on Garnishment IRS levies follow a separate formula tied to filing status and dependents. Federal agencies collecting other debts, including defaulted student loans, can take up to 15% of disposable earnings administratively.1U.S. Department of Labor. Fact Sheet 30 – Wage Garnishment Protections of the Consumer Credit Protection Act Those numbers don’t help you if you’re a private creditor with a judgment; they simply mark the outer edges of the framework the employer is navigating.
Sending the Letter
Delivery matters as much as content. If you ever need to prove the employer received the letter, you’ll want a dated paper trail. Certified mail with return receipt requested is the standard method. Some jurisdictions allow or require personal service through a process server, particularly for the initial writ of garnishment itself. Either way, you end up with a record of delivery that holds up in court.
Address the letter to a specific department or role, not the company generally. Payroll, human resources, or in-house legal counsel are the reliable recipients. A letter that lands on a general reception desk can sit for weeks, and the clock on the employer’s obligations starts when the right person receives the order.
What the Employer Does Next
Once a valid garnishment order is received, the employer must begin withholding and forwarding the money to the payee you designated. The employer cannot ignore the order, negotiate with the employee to skip it, or decide the debt seems unfair. The exact timing varies by state, but most jurisdictions require compliance starting with the first or second pay period after the order arrives.
The employer recalculates the correct withholding each pay period based on that period’s disposable earnings, staying within both federal and state limits. If pay fluctuates due to overtime, commissions, or variable hours, the withholding fluctuates too. Funds go to whoever the order specifies, whether that’s you, your attorney, a court registry, or an agency.
Federal law does not require the employer to notify the employee of the garnishment. The Department of Labor is explicit that there are no poster or notice requirements under Title III of the CCPA.5U.S. Department of Labor. Employment Law Guide – Wage Garnishment Many employers notify the employee anyway as a matter of policy, and some state laws require it, but the federal statute does not.
An employer that fails to comply with a valid garnishment order faces real exposure. The Department of Labor can seek court orders to compel compliance, and in some cases the creditor can hold the employer directly liable for the amount it should have withheld but didn’t.5U.S. Department of Labor. Employment Law Guide – Wage Garnishment That liability is worth referencing in your letter when the employer is slow to act.