Involuntary and Voluntary Pay Deductions: Tennessee
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- An employer must begin withholding for child support with the first pay period that occurs 14 days after the employer receives an income withholding order. An employer must remit payments within seven business days after payday. If an employee is terminated from employment, the employer must promptly notify the state of the employee's termination. See Child Support Withholding.
- Tennessee limits the amount of disposable income that is subject to creditor garnishment. The limits are based on the federal garnishment limits, with an allowance for the employee's dependent children under the age of 16. Payments made to non-employees, such as independent contractors, are also subject to withholding to satisfy a garnishment order. See Creditor Garnishment Withholding.
- Individuals with unpaid state taxes may become subject to a tax levy. In Tennessee, the limits that apply to creditor garnishments do not apply to tax levies. See Tax Levies.
- Tennessee allows employees to voluntarily assign their wages to another with the employer's written consent. See Voluntary Wage Assignments.