Involuntary and Voluntary Pay Deductions: Michigan
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
Summary
- A Michigan employer served with an Income Withholding Order for child support for an employee must begin withholding within seven days after being served. The employer must remit payments within three days after payday. The federal Consumer Credit Protection Act (CCPA) limits the total amount that may be withheld from any employee's paycheck, even if the employee has more than one withholding order against it. See Child Support Withholding.
- Michigan permits the garnishment of periodic payments. The CCPA limits the maximum amount that may be withheld to satisfy a creditor garnishment. See Creditor Garnishment Withholding.
- An employer served with a wage levy must withhold from the employee's wages until all the tax is repaid. The CCPA limits apply to wage levy withholding in Michigan. See State Tax Levy Withholding.
- Michigan permits voluntary wage assignments under certain conditions. See Voluntary Wage Assignments.