Getty Images, nadianb, en.elcierredigital.com Blunt Warning from Social Security to These Americans: Your Wallet Will Feel It
Those Americans who have debts with the US Social Security are in for it: watch out for your salary
The Social Security Administration in the United States has issued a firm warning to citizens with outstanding debts to the Government. If they don't catch up, they could see part of their wages garnished through the process known as AWG (Administrative Wage Garnishment).
Government and SSA of the United States Make a Strong Move: Beware of AWG
AWG is a mechanism that allows the federal Government to order employers to withhold up to 15% of a worker's disposable wages. All of this is to settle non-tax debts, such as Social Security overpayments.
This process doesn't require a court order and is applied directly to the net wages, meaning after mandatory deductions like taxes and insurance. Before the garnishment begins, the person will receive a 60-day notice, informing them about the debt, their rights, and the options available to avoid the garnishment.
How Much Can Be Garnished? It's No Joke
The Government can garnish up to 15% of the disposable wages per pay period. However, the law ensures that the worker keeps at least an amount equivalent to 30 times the federal minimum weekly wage.
If there are other active garnishments, such as for child support, the total garnishments can't exceed 25% of the disposable wages.
The Government justifies this measure as an effective tool to recover outstanding debts without the need for lengthy judicial processes. The Debt Collection Improvement Act of 1996 authorizes federal agencies to use AWG to recover non-tax debts.
Additionally, the process is designed to be fair, offering debtors the opportunity to request a review or present evidence of financial hardship before the garnishment begins.
The Affected Speak Out: Here's What They Say
Some citizens affected by AWG have expressed concern about the financial impact of the wage reduction. However, the Social Security Administration allows for a reduction in the garnished percentage if it is shown that the garnishment causes significant financial hardship, such as severe illness or job loss.
It's important to note that if the debt was caused by false statements or intentional concealment of information, reductions in the garnishment will not be granted.
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