Wage Assignment

AAA

DEFINITION of 'Wage Assignment'

The procedure of taking money directly from an employee's compensation under the authority of a court order, in order to pay a debt obligation. Wage assignments are typically a last resort of a lender to receive repayment from a borrower who has previously failed to pay their debt obligation.

INVESTOPEDIA EXPLAINS 'Wage Assignment'

Typical reasons for a wage assignment may be items such child support payments, court fines and taxes that have gone unpaid for a prolonged period of time. Once mandated by a court and served to an employer, wage assignments are processed as part of an employer's payroll procedure -- the employee's regular paycheck is decreased by the amount of the assignment and noted on their pay stub.

Employees may sometimes be able to voluntarily undergo wage assignment to pay for things like union dues or contribute to a retirement fund.

RELATED TERMS
  1. Withholding Allowance

    An allowance an individual claims on a W-4 Form. A withholding ...
  2. Assignment Method

    A method of allocating organizational resources. The assignment ...
  3. Withholding

    The portion of an employee's wages that is not included in his ...
  4. Withholding Tax

    1. Income tax withheld from employees' wages and paid directly ...
  5. Creditor

    An entity (person or institution) that extends credit by giving ...
  6. Garnishment

    A legal process whereby payments towards a debt owed by an individual ...
Related Articles
  1. Retirement

    Become A Certified Financial Divorce ...

  2. Budgeting

    Get Through Divorce With Your Finances ...

  3. Investing Basics

    Using Appreciative Inquiry To Solve ...

  4. Investing Basics

    The Basics Of Value Chain Analysis

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center