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Involuntary and Voluntary Pay Deductions: Federal

Involuntary and Voluntary Pay Deductions requirements by state

Original Author: Ryan F. Donovan

Updating Author: Alice Gilman

Summary

  • Involuntary pay deductions are those an employer is required to make by order of an agency or court to satisfy an employee's unpaid debt, such as for child support or garnishments to pay debts owed to various creditors, government agencies, in bankruptcy, or for student loans and unpaid taxes (i.e., tax levies). Employers are subject to serious penalties for failing to comply with child support and garnishment orders. See Involuntary Pay Deductions.
  • Voluntary pay deductions are those that employees ask their employer to make on their behalf. Some of the most common types include charitable donations, union dues, credit union payments, US Savings Bond purchases and wage assignments. See Voluntary Pay Deductions.