Involuntary and Voluntary Pay Deductions: Wisconsin
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- Wisconsin employers that receive an income withholding order (IWO) for child support must begin withholding no later than the first pay period that occurs within five working days after the date of the IWO. Amounts withheld must be remitted within five days after the withholding date. Penalties are imposed for noncompliance. Federal withholding limits apply in Wisconsin. Employers may deduct a small administrative fee. See Child Support Withholding.
- In Wisconsin, the garnishment process begins when a court sends an employer Form CV-422, Earnings Garnishment. This form details the amount that is owed and the procedures the employer and employee must follow in order to comply with the garnishment. Several additional documents that the employer must act on will be received with the form. Amounts withheld for creditor garnishments must be remitted five to ten business days after each pay period. The amount that may be withheld for a creditor garnishment is limited. See Creditor Garnishment Withholding.
- Employers must comply with a tax levy issued against the wages an employee who has unpaid taxes. The amount to be deducted for a tax levy cannot exceed 25% of gross pay. There are other types of garnishments that take priority over tax levies. See Tax Levies.
- Wisconsin law requires spousal consent of voluntary wage assignments and limits assignments of future earnings. See Voluntary Wage Assignments.