Administrative Wage Garnishment for Employers
Administrative Wage Garnishment (AWG) is a debt collection process that allows a federal agency to order a non-federal employer to withhold up to 15 percent of an employee's disposable income to pay a nontax delinquent debt owed to the agency.
(Not an employer? Click for administrative wage garnishment information for individuals or for agencies.)
Upon receipt of an AWG order, federal law requires an employer to:
- Verify an employee’s employment.
- Complete and return the Wage Garnishment Worksheet, SF-329C and the Employer Certification, SF-329D (pages 8 and 9).
You may also use this Wage Garnishment Calculator to calculate the Wage Garnishment Amount to be deducted from the debtor's disposable pay.
- Deduct the wage garnishment amount from the employee's wages on the first payday after receipt of the order.
- Continue deductions until an employer receives notification from the creditor agency, DMS, or the PCA to suspend or discontinue deductions.
- Send withheld monies to the address listed in the wage garnishment order within three days of withholding. Note: It may be addressed to a PCA, but it is a Treasury lockbox.
Failure to Comply
An employer who fails to comply with an AWG order is liable for amounts that the employer fails to withhold, plus possible penalties and fees. Noncompliance may result in legal action.
Last modified 11/29/18