Section 3.30 Federal Administrative Wage Garnishment Form SF-329 (New Section)

• Library: Creditors' Remedies (2009 Ed. + 2014 Supp)

E. (§3.30) Federal Administrative Wage Garnishment Form SF-329 (New Section)

2014 SUPPLEMENT (§3.30) New Section

The Financial Management Service of the U.S. Department of the Treasury provides guidelines for garnishing accounts that include federal benefit payments. These guidelines are available at:

www.fms.treas.gov/greenbook/Garnishment-Guideline- 06-13.pdf

For additional information about federal wage garnishment, see 31 U.S.C. § 3720D and 34 C.F.R. Part 34. Form SF-329 on the following pages is available at:

http://fms.treas.gov/debt/awg/SF329.pdf

ADMINISTRATIVE

WAGE GARNISHMENT

FORM SF-329

Notice to Federal Agencies:

In addition to this coversheet, this Administrative Wage Garnishment package includes:

SF-329A Letter to Employer & Important Notice to Employer

SF-329B Wage Garnishment Order

SF-329C Wage Garnishment Worksheet

SF-329D Employer Certification

Complete instructions to Federal Agencies preparing Administrative Wage Garnishment Form SF-329 may be obtained from the Financial Management Service's web site at: http://www.fms.treas.gov/debt/awg.html#forms, or by calling the Financial Management Service at (202) 874-0540.

Brief Instructions:

The Federal Agency issuing the Wage Garnishment Order is referred to as the "Creditor Agency." The Creditor Agency must complete this Administrative Wage Garnishment form and mail all parts (SF-329A, SF-329B, SF-329C, and SF-329D) of the form to the employer of the individual who owes a delinquent debt to the Federal Government. However, failure to include all parts of the form (other than the Wage Garnishment Order, SF-329B) will not invalidate the wage garnishment order. The individual who owes a delinquent debt to the Federal Government is referred to as the "employee" or the "debtor."

Letter to Employer and Important Notice to Employer (SF-329A): The Creditor Agency is not required to insert any information on the Letter to the Employer & Important Notice to the Employer. The Creditor Agency must include this Letter as part of the Administrative Wage Garnishment Form mailed to employers when issuing a wage garnishment order.

(see reverse for additional information)

ADMINISTRATIVE

WAGE GARNISHMENT

FORM SF-329

Notice to Federal Agencies (cont.):

Brief Instructions (cont.):

Wage Garnishment Order (SF-329B): This Wage Garnishment Order is to be completed by the Federal Agency issuing the Wage Garnishment Order, and must be included as part of the form mailed to employers.

Section 2. Wage Garnishment Amount: If the agency and the debtor have agreed to an exact dollar amount to be deducted from the debtors's wages, insert the dollar amount in section 2(a). If section 2(a) is completed, the agency should skip section 2(b) and proceed to Creditor Agency-Certification.

If section 2(a) is not completed, the agency must complete section 2(b)(1). Insert the percentage of the debtor's disposable pay that the employer is ordered to deduct. The percentage will be 15% unless the agency either agrees to a lower percentage or is ordered by a hearing official to accept a lower percentage, e.g. 10%.

Creditor Agency Certification: The head of the agency, or his or her delegatee, must sign the Wage Garnishment Order. In addition, the signatory's printed name and title should be printed or typed where indicated.

Wage Garnishment Worksheet (SF-329C): The Creditor Agency is not required to insert any information on the Wage Garnishment Worksheet. The Creditor Agency must include this blank Wage Garnishment Worksheet as part of the Administrative Wage Garnishment form mailed to employers when issuing a wage garnishment order.

Employer Certification (SF-329D): The Creditor Agency must complete the top part of the Employer Certification where indicated, and include the Employer Certification as part of the Administrative Wage Garnishment form mailed to employers. Employers are required to complete the form and return it to the creditor agency within 20 days of receipt.

LETTER TO EMPLOYER & IMPORTANT NOTICE TO EMPLOYER

Dear Employer,

One of your employees has been identified as owing a delinquent nontax debt to the United States. The Debt Collection Improvement Act of 1996 (DCIA) permits Federal agencies to garnish the pay of individuals who owe such debt without first obtaining a court order. Enclosed is a Wage Garnishment Order directing you to withhold a portion of the employee's pay each pay period and to forward those amounts to us. We have previously notified the employee that this action was going to take place and have provided the employee with the opportunity to dispute the debt.

As both a businessperson and a taxpayer you can understand and appreciate the importance of ensuring that duly owed debts do not go unpaid. Your cooperation in complying with the enclosed Wage Garnishment Order will assist in our efforts to collect the billions of dollars in delinquent nontax debt owed to the United States. A Wage Garnishment Worksheet is enclosed to assist you in determining the proper amount to withhold.

Please read the enclosed documents carefully. They contain important information concerning your responsibilities to comply with this Order. If you have any questions, please call the contact name listed on the Order.

Thank you for your cooperation.

See reverse for Important Notice to Employer.

Enclosures: Wage Garnishment Order (SF-329B)

Wage Garnishment Worksheet (SF-329C)

Employer Certification (SF-329D)

* * * * *

Notice to Federal Agencies: Complete instructions to Federal Agencies preparing Administrative Wage Garnishment forms may be obtained from the Financial Management Service's web site at http://www.fms.treas.gov/debt/awg.html#forms.

IMPORTANT NOTICE TO EMPLOYER

FEDERAL LAW (31 U.S.C. § 3720D, 31 C.F.R. § 285.11) PROVIDES:

1. Federal law supersedes State law. Federal law applies to wage garnishment pursuant to the Wage Garnishment Order notwithstanding State law.

2. Disposable pay. For purposes of the Wage Garnishment Order, "disposable pay" means the employee's compensation (including, but not limited to, salary, overtime, bonuses, commissions, sick leave and vacation pay) from an employer after the deduction of health insurance premiums and any amounts required by law to be withheld. Proper deductions include Federal, State, and local taxes, State unemployment and disability taxes, social security taxes, and involuntary pension contributions, but do not include voluntary pension or retirement plan contributions, union dues, or amounts withheld pursuant to a court order, and the like. A Wage Garnishment Worksheet is included with the Wage Garnishment Order to assist the employer in...