Wage garnishments are not “rare admin tasks.” They are compliance events with strict rules, deadlines, and penalties. This 2026 South Carolina employer guide explains how wage garnishments work, how to process child support, IRS levies, and court orders correctly, and what to do when multiple garnishments apply at the same time.
How Wage Garnishment Works in South Carolina
Wage garnishment is a legal process that requires employers to withhold a portion of an employee’s wages and remit those funds to a designated agency or court. Once a valid order is received, compliance is mandatory.
In South Carolina, employers are responsible for reviewing the order immediately, setting up withholding by the required pay period, calculating the correct amount based on legal limits, and remitting payments on schedule. Garnishments remain in effect until the issuing agency provides written confirmation to stop.
Employers cannot delay action while waiting for employee clarification, and they cannot change withholding amounts based on employee requests. Once an order is received, payroll and HR are legally obligated to follow it exactly as written.
Wage Garnishment Limits and Priority Rules
Federal law establishes the primary limits for wage garnishments, which South Carolina follows.
For most creditor garnishments, employers must withhold the lesser of:
- 25 percent of an employee’s disposable earnings, or
- The amount by which disposable earnings exceed 30 times the federal minimum wage
Disposable earnings are calculated after mandatory deductions such as federal income tax, Social Security, and Medicare. Voluntary deductions, including benefits or retirement contributions, do not reduce disposable earnings for garnishment purposes.
Certain garnishments are treated differently. Child support orders and federal tax levies may require withholding amounts that exceed standard creditor limits.
When more than one garnishment applies, employers must follow a strict priority order:
- Child support orders take first priority
- Federal tax levies issued by the Internal Revenue Service come next
- State tax levies follow
- Creditor and court judgment garnishments are last
Lower-priority garnishments may be delayed or partially applied if higher-priority orders already reach the allowable withholding maximum.
Processing Child Support, IRS Levies, and Court Orders
Child support garnishments in South Carolina are most often issued through the Department of Social Services and require employers to begin withholding no later than the first payroll cycle after receipt. Payments must be sent to the state disbursement unit, and withholding must continue until an official termination notice is received.
IRS levies operate under federal rules and include specific instructions for calculating exemptions and withholding amounts. These orders typically override creditor garnishments and require careful payroll setup to avoid under-withholding or over-withholding.
Court-ordered creditor garnishments generally carry lower priority and stricter limits. Employers are still required to respond to the court order even when no funds are available due to higher-priority garnishments. Documentation showing how withholding limits and priorities were applied should always be retained.
Across all garnishment types, accuracy, timing, and documentation matter. Errors can result in penalties, back payments, and employer liability.
Wage Garnishment FAQs for South Carolina Employers
What happens if an employee has multiple garnishments?
Employers must apply garnishments in priority order and ensure total withholding does not exceed legal limits. Lower-priority garnishments may be delayed until higher-priority orders end.
Is there a way to simplify wage garnishment processing?
Yes. Consistent internal workflows, automated payroll rules, and centralized documentation significantly reduce errors.
Can a payroll provider or PEO handle garnishments?
Yes. Many employers rely on payroll providers or PEOs to calculate, apply, remit, and track garnishments accurately.
What information is required to process a garnishment correctly the first time?
Employers need the employee’s identifying details, the garnishment type, start date, withholding limits, remittance instructions, and any required employer response forms.
What are the most common garnishment mistakes employers make?
Using the wrong wage base, misapplying priority rules, missing deadlines, stopping withholding without written release, and relying on manual calculations are the most frequent issues.
How do employers avoid penalties for incorrect withholding?
By reviewing every order carefully, documenting calculations, responding promptly to agencies, and using payroll systems configured for compliance.
Who should employees talk to with questions about their garnishment?
Employees should contact the issuing agency for balance or dispute questions. Payroll or HR should only explain how deductions appear on pay stubs.
Can garnishments be automated inside payroll?
es. Properly configured payroll systems can enforce limits, priorities, and remittance schedules automatically.
How long does it take to set up a garnishment in payroll?
With modern payroll systems, garnishments can often be set up within one payroll cycle. Delays usually occur when orders are incomplete or unclear.
What should employers do if a garnishment order is confusing or incomplete?
Employers should contact the issuing agency immediately. Guessing or interpreting unclear instructions creates compliance risk.
Do employers need to notify the employee?
Yes. Employers should provide neutral, factual notice that a garnishment has been received and implemented, without offering legal advice.
When should an employer stop a garnishment?
Only after receiving written confirmation or a release notice from the issuing agency.
Does outsourcing payroll reduce garnishment compliance risk?
For many employers, yes. Outsourcing reduces calculation errors, improves documentation, and ensures deadlines are consistently met.
When a PEO Makes Sense for Garnishment Compliance
For South Carolina employers managing multiple garnishments, limited internal HR capacity, or growing compliance complexity, a PEO can provide structure and peace of mind.
Providers like guHRoo support employers with payroll processing, garnishment compliance, HR administration, and employee benefits through one integrated system.
Keeping Payroll Compliant When Garnishments Apply
Wage garnishments are not one-time interruptions. They are ongoing compliance obligations that require precision and consistency.
Employers who want to reduce risk, simplify payroll operations, and protect both employees and the business often choose structured payroll and HR support rather than managing garnishments manually.
Schedule a consultation with guHRoo to learn how South Carolina employers manage wage garnishments with confidence and clarity.
