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Any legal precedent on 401k contributions?

FrenchieFrenchie 116 Posts
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We had a situation where an employee did not make enough money for us to take all the deductions he has. One of the deductions was child support, so we followed state law and only deducted 50% after mandatory taxes. My question is, are we required to take the 401k deduction when we have a situation like this? I don't want to violate any ERISA laws.
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  • PorkPork 1,271 Posts
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    Below $154.00 or thereabouts, you must stop all garnishments with the exception of tax and Department of Education collections. Child support can take up to 50% or 60% if the ee has a current family that he is supporting. You should contact the case manager with each case when you have an employee go below $154.00 and let them know you can not be in compliance with their court order. They will normally agree but follow it up with a written letter explaining why the ee's paycheck falls below what was previously reported. Pork
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  • Don DDon D 9,834 Posts
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    Unless I am sadly mistaken, even minimum wage employees can participate in a 401k since this is a voluntary deferral of income, not a reduction in income or similar deduction from pay.
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