What is a wage assignment?
A wage assignment is a deduction from an employee’s pay, which may be used to pay off debts, or to pay child or spousal support. Some loans stipulate to a wage assignment should they fail to make prompt payments to pay off the loan. In this case, if the loan is not repaid, money is deducted from an employee’s paycheck, either a specific sum or a percentage of earnings to collect debts owed. There are two wage assignment types. One is voluntary, when an employee specifically asks his or her employer to deduct a portion of his/her wages to be paid to a designated third party. This is often easier for people than remembering to write important checks for loans or child support, or for things like payments of back taxes. The voluntary wage assignment tends not to reflect poorly on the employee, since it shows the employee is making a true effort to repay a loan or to honor financial obligations to others. The second type of wage assignment is involuntary. It can also be called wage garnish
It’s okay, don’t worry about it. It’s okay to start another thread as long as it’s another topic. This one is specifically about wage assignments, so it’s another topic. Wage assignments are kind of like a garnishment, only they are voluntary and not court ordered. They can be revoked at any time. Also, unlike garnishments, they can take any amount out of your check. Garnishments are capped federally at 25%.
