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Involuntary and Voluntary Pay Deductions: New York

Involuntary and Voluntary Pay Deductions requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • An employer must begin withholding with the first pay period that occurs 14 days after service of an income withholding order for child support. Payments must be remitted within seven business days after payday. If an employee is terminated from employment, the employer must send a termination notice promptly thereafter. See Child Support Withholding.
  • Not more than 10% of the wages of an employee subject to a creditor garnishment can be withheld. No amount may be withheld for a week unless the employee's disposable earnings for that week exceed thirty times the federal minimum hourly wage in effect at the time the earnings are payable. See Creditor Garnishment Withholding.
  • New York State permits withholding for voluntary wage assignments subject to certain requirements and limitations. See Voluntary Wage Assignments.
  • Individuals with unpaid state taxes who do not voluntarily pay off their debt may become subject to income withholding to satisfy a tax levy. In New York State, wage deductions for a tax levy cannot exceed 10% of gross income, or 25% of disposable earnings. See Tax Levies.
  • Under the New York City Fair Work Practices ordinances, New York City fast food employers must deduct voluntary contributions from a fast food employee's pay and remit the deductions to a nonprofit organization designated by the employee, if the employee authorizes the employer to do so and the employer receives a registration letter regarding the relevant nonprofit organization. See Local Requirements.