Electronic Income Withholding Orders and Garnishment Management in Interact HRMS
Electronic Income Withholding Orders (eIWO) have become a critical component of how many US employers handle child support obligations. By allowing state agencies to send and receive wage withholding instructions electronically, the eIWO process streamlines notifications, reduces administrative burdens, and helps ensure children receive financial support more promptly. Yet child support garnishments in the United States are only one part of a much larger global landscape of garnishment practices. Employers also face garnishments for unpaid taxes, creditor judgments, spousal support, and more. Different countries, such as Canada, the UK, and Jamaica, have their own variants of income deductions for legal obligations, each with unique rules and methods—some of which are also moving toward electronic communication. This blog explores how eIWO functions in the US, provides examples of garnishment practices in other countries, and explains how Interact HRMS delivers a comprehensive, configurable approach to garnishment management that integrates eIWO alongside other...