When an employee is subject to wage garnishment, it is the employer’s responsibility to deduct a portion of their wages—known as the garnishment amount. In this article, we explain what wage garnishment means for you as an employer and what important aspects to be aware of.
Attachment of earnings orders issued by the Enforcement Authority
If an employee becomes subject to attachment of earnings, the Swedish Enforcement Authority (Kronofogden) will send a formal written decision to the employer. The order specifies how much should be withheld each month. The Enforcement Authority also provides a protected amount—the portion of the employee’s income they are entitled to keep in order to cover basic living expenses.
Keep in mind that this is sensitive and personal information. If you use a payroll outsourcing provider, it is essential to ensure that any necessary information is shared in a secure and GDPR-compliant manner.
At Azets, we use our portal Cozone to safely and efficiently exchange information between us and our clients.
Calculating the correct amount
The garnishment amount depends on the employee’s income and the protected amount (existential minimum). The Enforcement Authority generally specifies how much should be withheld. However, if the employee’s income varies, the employer may sometimes need to recalculate the amount.
This is something that Azets can help with. By outsourcing your payroll processing to us, you can be confident that all calculations are completed accurately and in compliance with current regulations.
Discreetly inform the employee
The employer must inform the employee about the attachment of earnings. This is typically done through the employee’s pay stub. Although the employee will already have received notice from the Enforcement Authority, attachment of earnings is a sensitive issue and should be handled with discretion and respect.
Make timely payments
The garnished amount must be paid to the Enforcement Authority. This is a legal obligation for the employer. If the payment is not made on time, the Enforcement Authority may issue a demand for payment, which could ultimately lead to legal consequences for the employer.
That’s why it’s essential to have clear internal procedures for handling attachment of earnings cases—ensuring the payroll department receives all relevant documentation in a timely manner.
Ongoing reporting requirements
The employer may also be required to report changes to the Enforcement Authority, such as changes in the employee’s income or if the employee’s employment ends.
If you are a client of Azets, we can support you with ongoing reporting—either by providing tailored reports that clearly summarize all relevant information or by handling the reporting on your behalf.
In summary
Proper handling of attachment of earnings is an important part of an employer’s legal responsibilities. With the right procedures in place—or with our support from Azets—you can ensure that everything is managed accurately, on time, and with full respect for the employee’s situation.
If you’d like help with the process, assistance with reporting, or want to ensure everything is functioning correctly, don’t hesitate to contact us at Azets.
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