Deductions and Garnishments

 

Deductions 

Deductions can be taken from paychecks either before or after taxes. Deductions can be taken for programs or services that are elected to purchase or participate in or they could be those required by law.  

Before taxes deductions include: 

  • Medical, dental, cancer and vision
  • Public Employees Retirement System (PERS) or  Optional Retirement Plan (ORP) (Note these deductions do not reduce FICA taxable earnings.) 
  • 403(b) tax sheltered annuity plans and 457(b) deferred compensation plan   (Note these deductions do not reduce FICA taxable earnings.) 
  • Flexible Spending Account(s) for medical and dependent care
  • Campus parking permits  

After taxes deductions include:  

  • Graduate health insurance
  • Charitable donations to United Way, Alumni, USM Foundation and USM Athletic Foundation
  • Life insurance and disability
  • Other deductions for amounts owed to departments on campus 
  • Garnishments 

Taxes deductions: 

  • Federal
  • State
  • FICA 

 

Garnishments 

Contact Payroll with questions about garnishments. 

A garnishment is a court order that directs the university to withhold money that is to be paid to a debtor from a paycheck, and to forward that money or property to the appropriate payee as instructed by the court for payment of a debt that is owed. Wages can be garnished because of debts to creditors, federal and state tax levies, or alimony and child support.  USM does not deduct for voluntary garnishments. 

There are three notifications of garnishments to a paycheck. First, a notification from an agency or court that will be sent to the person whose wages will be garnished. Second, a notification from USM to that person regarding their paycheck being garnished, and third the garnishments will be itemized on the paycheck.   

  • Family Support - The appropriate enforcement agency or court will send the university an order regarding a new family support order filed or a change on a current order.
  • Chapter 13 Bankruptcy - This type of garnishment stops all creditors that are listed in the filing agreement with the Chapter 13 Trustees from garnishing checks (stops creditor garnishment only).
  • Creditor Garnishment – A court can require the university to garnish paychecks as a result of a court judgment.
  • IRS Tax Levies - The Internal Revenue Service (IRS) can garnish paychecks for tax levies the IRS has filed for any purpose such as taxes owed for property and back taxes. If married, the filing may be made on whichever person is employed by university.
  • Student Loan - The Student Loan Guarantor sends notification to garnish paychecks if you are in default on a student loan.
  • Consumer Credit Counseling - This is a contractual agreement between the individual, the debtor, and creditors, to pay an agreed upon amount. 
  • IRS Payroll Deduction Agreements - This is a contractual agreement between the individual, the debtor, to pay an agreed upon amount to the IRS.
  • State of Mississippi Tax Levies – The Department of Revenue will garnish paychecks for taxes that are owed to the State of Mississippi due to the filing of annual tax returns. The employee that is indebted to the State of Mississippi may not be paid any monies until the debt is paid in full.