Involuntary and Voluntary Pay Deductions: Arizona

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

Authors: Paige A. Martin and Mary Grace McNear, Kutak Rock LLP

Summary

• A child support withholding order becomes effective in the first pay period occurring 14 calendar days after the employer receives the order. An employer must remit payments within two business days after payday and notify the state that income has been withheld. If an employee is terminated from employment, the employer must send a termination notice within 10 days. There is a limit on the amount that may be withheld. Special rules apply to interstate withholding orders. See Child Support Withholding.
• Arizona limits the amount of disposable income that is subject to creditor garnishment. The limits are based on the federal garnishment limits, with an exception for heads of families. If a garnishment order is served on the employer by certified mail, return receipt requested, the emplyer must file an answer within 30 days after the date the employer received the order to avoid being liable for the full amount due on the judgment. See Creditor Garnishment Withholding.
• Individuals with unpaid state taxes may become subject to a tax levy. The limits that apply to creditor garnishments do not apply to tax levies. See Tax Levies.