Involuntary and Voluntary Pay Deductions: New Jersey

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

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• Employers must begin withholding for a child support order in the first pay period ending after the postmark date of the order. Payments must be remitted on payday and may be remitted electronically. Amounts withheld must be prorated if there are multiple orders against one employee. Employers may charge employees an administrative fee for processing orders. The amount withheld for child support may not exceed the limits of the federal Consumer Credit Protection Act. See Child Support Withholding.
• An employer may not withhold for more than one creditor garnishment at a time. Withholding is subject to specific limits, and payments must be remitted within a certain time period. New Jersey employers may charge employees an administrative fee for processing garnishment orders. See Creditor Garnishment Withholding.
• New Jersey employers may withhold from employees' wages according to a repayment plan to satisfy employees' financial obligations owed to the state. Employers are not required to comply with voluntary wage assignments. See Voluntary Wage Assignments.
• An employer that receives a tax levy notice against the wages of an employee who has failed to pay state income taxes must withhold according to the levy. The amount that may be withheld is limited and the employer must remit withholdings at least monthly. See Tax Levies.