Involuntary and Voluntary Pay Deductions: Tennessee

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 14 calendar days after the date the order was mailed to the employer. Amounts withheld must be remitted within seven days after payday. If an employee is terminated from employment, the employer must promptly notify the state of the employee's termination. See Child Support Withholding.
• Tennessee limits the amount of disposable income that is subject to creditor garnishment. The limits are based on the federal garnishment limits, with an allowance for the employee's dependent children under the age of 16. Payments made to non-employees, such as independent contractors, are also subject to withholding to satisfy a garnishment order. See Creditor Garnishment Withholding.
• Individuals with unpaid state taxes may become subject to a tax levy. In Tennessee, the limits that apply to creditor garnishments do not apply to tax levies. See Tax Levies.
• Tennessee allows employees to voluntarily assign their wages to another with the employer's written consent. See Voluntary Wage Assignments.