Involuntary Deductions for the US

When it comes to involuntary deductions, the Elements task provides you with a robust and flexible solution.

For further info, see Human Resources Cloud Administering US Involuntary Deductions on the Help Center.

This secondary classification

Works at this level

This is what it does

Alimony

Regional

Support payment initiated by an involuntary deduction order to a divorced person by the former spouse.

For further info, see Alimony Deductions for the US in the Help Center.

Bankruptcy Order

Federal

Federal court procedure that helps individuals get rid of their debts and repay their creditors. When an individual declares bankruptcy, a trustee of the federal court generally handles the payments to the individual's creditors.

For further info, see Bankruptcy Order Deductions for the US in the Help Center.

Child Support

Regional

Payment a noncustodial parent makes as a contribution to the cost of raising their child.

For further info, see Child Support Deductions for the US in the Help Center.

Creditor Debt

Regional

Involuntary deduction ordered against the subject of a successful lawsuit. When a creditor, lender, debt collector, attorney, or other party wins the lawsuit a judgment is made to withhold earnings. Those earnings are used to pay the third party.

Note:

You can usually use the Garnishment and Creditor Debt classifications interchangeably. However, there are some exceptions.

Some states prohibit multiple involuntary deductions of this secondary classification to process at the same time. The payroll process enforces this rule if the employee has multiple components of the same secondary classification on their card.

For further info, see Creditor Debt Deductions in the Help Center.

Debt Collection Improvement Act (DCIA)

Federal

Agencies are given authority to administratively garnish for debts owed to the US government. An example of federal debts collected according to this federal process are defaulted loans administered by:

  • Federal Housing Administrations

  • Veterans Housing Administration

  • Housing and Urban Development

  • Student loans administered directly by the US Department of Education

  • Social Security Administration

For further info, see Debt Collection Improvement Act Deductions in the Help Center.

Educational Loan

Federal

Delinquent loan for education granted according to the Federal Direct Loan Program or Federal Family Education Loan Program.

For further info, see Educational Loan Deductions in the Help Center.

Employee Requested

Regional

Agreement made between the employee and creditor after a debt was incurred. Not all states allow this.

For further info, see Employee Requested Deductions for the US in the Help Center.

Garnishment

Regional

Wage garnishment occurs when an employer is required to withhold the earnings of an employee for the payment of a debt. The garnishment is in accordance with a court order or other legal or equitable procedure.

Note:

You can usually use the Garnishment and Creditor Debt classifications interchangeably. However, there are some exceptions.

Some states prohibit multiple involuntary deductions of this secondary classification to process at the same time. The payroll process enforces this rule if the employee has multiple components of the same secondary classification on their card.

For further info, see Garnishment Deductions for the US in the Help Center.

Regional Tax Levy

Regional

Legal seizure of taxpayers' assets to satisfy back taxes owed. Not all states allow regional tax levies.

For further info, see State Tax Levy Deductions in the Help Center.

Spousal Support

Regional

Court-ordered payment for support of a former spouse or a spouse while a divorce is pending.

For further info, see Spousal Support Deductions for the US in the Help Center.

Tax Levy

Federal

According to federal law, a tax levy is an administrative action by the IRS enforced by statutory authority. This authority permits the IRS, without going to court, to seize property to satisfy a tax liability.

For further info, see Federal Tax Levy Deductions in the Help Center.