ROSELAND, NJ -- (Marketwired) -- 03/29/17 -- As companies grow in size, so does their potential liability for wage garnishments. According to ADP® 2017 data, one in 14 U.S. employees has a wage garnishment and 12 percent of those have more than one type. Further, the same data shows that companies with 5,000 or more employees have the highest garnishment rate at 8.6 percent.
For employers, wage garnishment -- withholding wages from an employee's earnings to satisfy a debt -- means navigating complicated state and federal laws that can make compliance particularly challenging. Failure to calculate and withhold the appropriate amount of funds, submit required responses and notifications, or hold or remit payments to the proper parties can expose companies to litigation, fines and employee frustration.
Now, ADP has enhanced its full-service Wage Garnishments solution to further help employers lessen their compliance burden and simplify the end-to-end process of wage garnishments on a day-to-day basis. The ADP SmartCompliance Wage Garnishment technology helps to mitigate risk, improve productivity and ease the employee experience. This outsourced solution is bolstered by experts who help professionally manage the process and provide assistance.
ADP's newly enhanced Wage Garnishments solution:
Doug Politi, president of ADP Added Value Services business, said he was delighted companies are seeing the benefits of ADP's newly improved wage garnishment solution.
"Garnishment orders can be a complex burden on employers, especially since they can be held liable for entire garnishment amounts, not to mention the costs of litigation and research time if garnishments aren't properly processed," said Politi. "Our focus is to simplify the employer experience by eliminating the majority of an employer's garnishment tasks, from lien management through disbursement."
The Wage Garnishments solution is part of ADP SmartCompliance, an integrated cloud-based solution of outsourced services that works with many leading payroll, HR and financial systems to help businesses manage compliance requirements associated with key HCM laws. ADP SmartCompliance provides consistent, scalable processes and expertise to help address HCM-related compliance tasks, such as employment tax, wage payments, health compliance, wage garnishments, tax credits, employment verification, and unemployment claims. It also helps businesses mitigate risk associated with noncompliance, improve efficiencies and drive growth.
To learn more about ADP SmartCompliance Wage Garnishments technology, check out this video.
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Source: ADP
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