PEO Garnishment Rules:
Garnishment court orders are sent directly to the PEO, as the PEO is considered the employer. For new clients joining the PEO, any existing garnishments for employees are usually not set up immediately.
For new PEO clients, we need to wait until the new hire reporting is completed, after which the courts will issue a new garnishment order to the employer (Niural PEO). To prevent any disruption in payments, we can use the existing garnishment order to set up the deduction for the employee and continue making payments, but this is only possible if the employer has a physical copy of the garnishment. Once Niural PEO receives the official court order, we will still need to review the new garnishment order for accuracy.
ASO Garnishment Rules:
Employers will need to provide copies of any current garnishments, and forward over any new garnishments they receive so we can set these up on employees files. Because they are an ASO client, any court order changes to an existing/new order will be mailed directly to the clients address and not Niural. Ongoing monthly fees do still apply as Niural remits those garnishment payments.
Garnishment Documentation and Billing:
Copies of all garnishment orders received should be stored under the “Garnishment Reporting” Google Drive folder. Notify Manikant of any new garnishments as he remits those payments, and let Sushant know as well since he’ll be generating the ongoing fee invoices.
Clients will be billed a monthly garnishment handling fee. This includes the set up of the garnishment on the employee file, on-going timely remittance of payments, and updates to any order changes.