When a court of law orders deductions from an employee's wages, this is called what?

When a court of law orders deductions from an employee's wages, this process is known as garnishment. Garnishment is a legal mechanism that allows a creditor to collect money owed to them directly from an employee's paycheck. This typically occurs when a court has determined that an employee has defaulted on a debt and has granted the creditor the right to intercept a portion of the employee's wages to satisfy that obligation.

In the context of payroll accounting, garnishments can arise from various situations, such as child support, tax levies, or creditor judgments. The law regulates how much can be garnished from an employee's wages to ensure that the employee retains enough income for their essential needs.

The other terms such as forfeiture, seizure, and deductions do not accurately describe the legal process of court-ordered wage deductions in the same context. Forfeiture generally refers to the loss of rights or property due to a breach of law or obligation, while seizure is a more general term that can refer to taking possession of something, often with legal authority, but not specifically related to wage deductions. Deductions is a broader term that encompasses any amounts withheld from paychecks, such as taxes or voluntary contributions, but it does not imply the legal proceedings that garn