Iowa-2017-SF301-Introduced
Senate File 301 - Introduced
SENATE FILE
BY DANIELSON
A BILL FOR
1 An Act relating to employer reimbursements for withholding
2 wages for support payments and garnishment.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2167SS (1) 87
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PAG LIN
1 1 Section 1. Section 252D.17, subsection 1, paragraph b, Code
1 2 2017, is amended to read as follows:
1 3 b. As reimbursement for the payor's processing costs, the
1 4 payor may deduct a fee of no more than two five dollars for each
1 5 payment in addition to the amount withheld for support. The
1 6 payor of income is not required to vary the payroll cycle to
1 7 comply with the frequency of payment of a support order.
1 8 Sec. 2. Section 252D.18A, subsection 2, Code 2017, is
1 9 amended to read as follows:
1 10 2. As reimbursement for the payor's processing costs, the
1 11 payor may deduct a fee of no more than two five dollars for
1 12 each payment withheld in addition to the amount withheld for
1 13 support.
1 14 Sec. 3. Section 642.14B, Code 2017, is amended to read as
1 15 follows:
1 16 642.14B Notice to defendant == employer garnishees.
1 17 If the garnishment is to earnings an employer owes a
1 18 defendant, the employer shall deliver the notice of garnishment
1 19 to the defendant with the remainder of or in lieu of the
1 20 defendant's earnings. As reimbursement for the employer's
1 21 processing costs, the employer may deduct a fee of no more than
1 22 five dollars from the defendant's earnings for each payment in
1 23 addition to the amount withheld. The garnishee shall state in
1 24 answer to the sheriff's examination whether or not service of
1 25 the notice of garnishment was delivered to the defendant. The
1 26 notice required by this section shall contain the information
1 27 required by section 642.14A, subsection 3, and shall be
1 28 delivered by personal service, mail, or electronic means.
1 29 Sec. 4. Section 642.21, subsection 1, unnumbered paragraph
1 30 1, Code 2017, is amended to read as follows:
1 31 The disposable earnings of an individual are exempt from
1 32 garnishment to the extent provided by the federal Consumer
1 33 Credit Protection Act, Tit. III, 15 U.S.C. {1671 = 1677
1 34 (1982). The maximum amount of an employee's earnings which
1 35 may be garnished during any one calendar year, including any
2 1 processing fees allowed pursuant to section 642.14B, is two
2 2 hundred fifty dollars for each judgment creditor, except as
2 3 provided in chapter 252D and sections 598.22, 598.23, and
2 4 627.12, or when those earnings are reasonably expected to be
2 5 in excess of twelve thousand dollars for that calendar year
2 6 as determined from the answers taken by the sheriff or by the
2 7 court pursuant to section 642.5, question number four. When
2 8 the employee's earnings are reasonably expected to be more than
2 9 twelve thousand dollars, the maximum amount of those earnings
2 10 which may be garnished during a calendar year, including any
2 11 processing fees allowed pursuant to section 642.14B, for each
2 12 creditor is as follows:
2 13 EXPLANATION
2 14 The inclusion of this explanation does not constitute agreement with
2 15 the explanation's substance by the members of the general assembly.
2 16 Under current law, an employer may be required to withhold a
2 17 portion of an employee's wages when the employee owes an amount
2 18 as a support payment, including child support, maintenance,
2 19 medical support, or spousal support, or when the employer
2 20 is garnished due to a judgment against the employee. As
2 21 reimbursement for processing costs for support payments, an
2 22 employer may withhold two dollars for each period where an
2 23 amount is withheld. An employer is not allowed reimbursement
2 24 for processing costs related to garnishment.
2 25 This bill provides that an employer may withhold five
2 26 dollars from the employee's earnings for each period where an
2 27 amount is withheld for support payments or garnishment. The
2 28 amounts withheld are included when calculating the amount of
2 29 earnings that may be withheld per year, which is subject to an
2 30 annual maximum under federal law.
LSB 2167SS (1) 87
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