Involuntary and Voluntary Pay Deductions: Maryland
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- An employer that receives an income withholding order (IWO) for child support against an employee's wages must begin withholding with the next pay period after receiving it and must remit amounts withheld within seven working days after the date of each withholding. The total amount that may be withheld from any employee's paycheck for child support is limited by the federal Consumer Credit Protection Act (CCPA). If an employee subject to an IWO terminates, the employer must notify the agency or court that issued the IWO in writing within a certain time period. Electronic payment of child support is not required, but it is preferred. Employers may be subject to penalties for violations. See Child Support Withholding.
- If an employer receives a writ of garnishment against the wages of an employee, it must take a series of actions in order to be in compliance with the law. The amount of earnings that may be garnished in Maryland is limited by the CCPA. In certain counties, additional limits apply. See Creditor Garnishment Withholding.
- Maryland employers that fail to withhold the required amount from an employee's wages pursuant to a tax levy may be held personally liable for the excess amount paid to the employee. Specific limits apply to the amount that may be withheld. Tax levies take priority over creditor garnishments. See Tax Levies.
- In Maryland, an assignment of wages is not valid unless the assignment meets specific requirements. See Voluntary Wage Assignments.