Involuntary and Voluntary Pay Deductions: New York

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

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• An employer must begin withholding for child support no later than in the first pay period that occurs 14 days after service of an income withholding order. Payments must be remitted within seven business days after payday. If an employee is terminated from employment, the employer must promptly send a termination notice to the agency or court. See Child Support Withholding.
• Not more than 10% of the wages of an employee subject to a creditor garnishment can be withheld. No amount may be withheld for a week unless the employee's disposable earnings for that week exceed thirty times the federal minimum hourly wage in effect at the time the earnings are payable. See Creditor Garnishment Withholding.
• New York State permits withholding for voluntary wage assignments subject to certain requirements and limitations. See Voluntary Wage Assignments.
• Individuals with unpaid state taxes who do not voluntarily pay off their debt may become subject to income withholding to satisfy a tax levy. In New York State, wage deductions for a tax levy cannot exceed 10% of gross income, or 25% of disposable earnings. See Tax Levies.
• New York City has requirements pertaining to involuntary and voluntary pay deductions. See Local Requirements.