Administrative Wage Garnishment   (AWG)

Wage garnishment is a process whereby an employer withholds amounts from an employee's wages and pays those amounts to the employee's creditor in satisfaction of a wage garnishment order issued by the creditor. A federal agency collecting delinquent non-tax debt may garnish the wages of a delinquent debtor without first obtaining a court order. This process, known as "administrative wage garnishment," is authorized by section 31001(o) of the Debt Collection Improvement Act of 1996 (DCIA), Pub. L. 104-134, 110 Stat. 1321-358 (Apr. 26, 1996), codified at 31 U.S.C. § 3720D.

The rules and procedures governing administrative wage garnishment were published as a Final Rule (31 CFR § 285.11) in the Federal Register on May 6, 1996 (63 FR 25136) (hereafter referred to as the "Final Rule"). In accordance with the Final Rule, the Financial Management Service (FMS), a bureau of the U.S. Department of the Treasury, promulgated Standard Form 329 (SF-329) which federal agencies are required to use to issue administrative wage garnishment (AWG) orders.

Federal agencies may use AWG.  For those agencies that allow FMS to use AWG on the debts they refer for Cross-Servicing, the private collection agencies (PCAs) under contract with FMS will assist the federal agencies by identifying debtors eligible for AWG.  The PCA will verify that the debtor has been employed for at least 12 months and issue a notice letter on behalf of the federal agency before garnishing the debtor’s wages.  The PCA will forward to FMS any request for a hearing by a debtor.  In addition, the PCA will monitor collections under the AWG Order to ensure employer compliance.

The Private Collection Division within FMS, Debt Management Services, has oversight and management responsibility over AWG.  The Private Collection Division monitors PCA activities to ensure their compliance with AWG Regulations and their contract with FMS.

The debtor’s employer is required to comply with the AWG Order by deducting the required amount from the debtor’s disposable pay.  Non-compliance by the employer may result in legal action.

The documents below provide agencies with AWG Forms and step-by-step instructions to use and complete the Forms.  Agencies will learn how to prepare AWG Orders using Standard Form 329.  Agencies will also be able to terminate AWG Orders by using Standard Form 329E.

Instructions to Federal Agencies for Preparing AWG Standard Form 329 (SF-329).

SF-329
(This version of SF-329C does not include the wage garnishment calculator.)

SF-329C    Wage Garnishment Worksheet:

• SF-329C: Wage Garnishment Worksheet
  
  Notes: This is the beta testing formulas, please remember to click on the green buttons (CLICK TO CALCULATE DISPOSABLE PAY and CLICK TO CALCULATE GARNISHMENT AMOUNT) for calculation results.
  This interactive form can be filled out on screen and printed directly from Adobe Acrobat Reader.

• SF-329C: Wage Garnishment Worksheet (Updated: April,2005)
  
  (Downloadable Excel program)

Instructions to Federal Agencies for Preparing AWG Standard Form 329E (SF-329E).

SF-329E

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