Wage Garnishments: When Discretion and Confidentiality Are Required
Part of a series | Wage Garnishment Insights
With all the personal data being transmitted back at forth, it is critical to ensure that the details included in the wage garnishments process are always kept secure and confidential.
Processing wage garnishments can be a sensitive, emotional topic that employees may prefer their employers not be part of. However, processing wage garnishments is not optional for employers and often those garnishment orders include personal data that must be kept confidential. Personal identifiable information like social security numbers (SSN), addresses, payroll data and other private details may be included in the orders. These personal details are often necessary for you to properly identify your employee and set the wage garnishment orders up in your payroll system. Additionally, you may be required to provide confidential details in your responses to the garnishment orders.
Wage garnishment for child support
When we look at child support wage garnishment orders, the SSN is often a primary identifier and included on all orders issued by a state child support agency. Child support agencies use the SSN within their system, along with the case identification numbers to issue orders, make modifications, as well as apply payments received. Child support agencies have systems that rely on the SSN for proper processing. New hire reporting, electronic income withholding orders (e-IWO), electronic medical support notices (e-NSMN), and lump sum reporting are key child support tasks that necessitate the inclusion of the SSN of the non-custodial parent.
For other types of wage garnishment orders, such as creditor garnishments, tax levies, and for bankruptcy plans, the use of SSNs varies. Some garnishors may not include or require the SSN, or it may be masked if included within the order, while others may still include the full SSN. It is important that you follow the instructions for each type of wage garnishment order to include the required personal data elements when responding or processing payments; otherwise, you may cause delays, additional follow-up, and potential security issues. If you disclose personal or confidential information due to a wage garnishment, you need to ensure that you do so in a secure manner that aligns with compliance, security requirements, and wage garnishment laws.
Establishing your wage garnishment process
Are you confident that your current wage garnishment process is taking all these varying requirements into consideration while keeping your employees' personal information secure? If not, we encourage you to create an established, secure process when wage garnishment orders are received and responded to, including payments. Additionally, you should regularly test the security of your internal and external processes. Limiting those within your company that have access to wage garnishment details also helps to limit the access of personal and sensitive details. Whether paper or electronic data, wage garnishment processing and related details should be stored securely, only accessible by authorized individuals.
Paycheck solutions for wage garnishment
Wage garnishment electronic transmission methods via established security protocols is another measure for keeping personal data secure . Implementing electronic transmission and receipt of orders, such as e-IWO, electronic tax levies (e-Levy), or electronic payments with established, verified recipients can help employers add additional layers of security for keeping personal data secure. Employers' systems need to be able to accommodate masking certain data elements such as SSNs, unmasking, as well as electronic transmissions to stay abreast with industry changes.
Do you have the infrastructure in place to handle these processes electronically and feel confident you are doing everything you can to protect your employees' information?
Ease your burden and improve compliance
ADP Wage Garnishments, one of the solutions offered in ADP's suite of ADP SmartCompliance® solutions, provides support for administering withholding orders for earnings paid through payroll.
Download the SmartCompliance® guidebook to learn how ADP solutions can reduce your administrative burdens while helping you maintain or improve compliance.
