Involuntary and Voluntary Pay Deductions: Illinois

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

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• Employers that receive an income withholding order (IWO) for child support against an employee's wages must begin withholding on the first payday after receipt of the IWO. The amount withheld for child support may not exceed the limits of the federal Consumer Credit Protection Act, although employers may withhold an administrative processing fee. Certain employers must remit withheld support electronically. Special rules apply to interstate income withholding orders. See Child Support Withholding.
• Illinois limits the amount of disposable income that is subject to creditor garnishment. Employers are entitled to withhold an administrative processing fee. See Creditor Garnishment Withholding.
• Voluntary assignments of wages entered into by employees are not valid unless several conditions are satisfied. Illinois law limits the amount of wages that are subject to wage assignments. See Voluntary Wage Assignments.
• If an employee has unpaid state taxes, the Illinois Department of Revenue has the right to collect the debt by issuing a garnishment order against the employee's wages. Employers are required to honor these orders. There are limits on the amount subject to withholding. See Tax Levies.