Fundamental Payroll Certification (FPC) Practice Exam

What does garnishment typically require?

1. Permission from the employee

2. A legal order or court decision

3. Notification to the tax authorities

4. Agreement from the employer

The correct answer is: A legal order or court decision

Garnishment typically requires a legal order or court decision to be enacted. This requirement stems from the legal nature of garnishment itself, which involves deducting a portion of an individual's earnings to satisfy a debt or obligation. The official court order outlines the amount to be withheld and the entity or person to whom the payment will be sent. Without this legal directive, an employer would not have the authority to withhold wages from the employee's pay. This ensures that the process is regulated and protects the rights of the employee, making it crucial for garnishments to be backed by an established legal framework. In contrast to this, while permission from the employee or an agreement from the employer might be considerations in the process, they do not replace the necessity of a valid court order for the garnishment to occur. Notifications to tax authorities may be required for different processes, but they are not a standard requirement for all types of garnishment.