**INSTRUCTIONS TO**

**FEDERAL AGENCIES**

**Preparing**

**Administrative Wage**

**Garnishment Forms**

**[SF-329]{.underline}**

**April 2005**

**U.S. Department of the Treasury**

**Financial Management Service**

**Debt Management Services**

> **Purpose\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....Page
> 1**
>
> **Background\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....Page
> 1**

**Paperwork Reduction
Act\...\...\...\...\...\...\...\...\...\...\...\...\.....Page 2**

**AWG Statutory and Regulatory Requirements\...\...Page 3**

> **Preparing the AWG
> Form\...\...\...\...\...\...\...\...\...\...\...\...\....Page 4**
>
> **Letter to the Employer &**

**Important Notice to the Employer\...\...\...\...\...Page 4**

> **Wage Garnishment Order** **\...\...\...\...\...\...\...\...\...Page
> 5**

**Wage Garnishment Worksheet\...\...\...\...\...\.....Page 8**

> **Employer Certification**
> **\...\...\...\...\...\...\...\...\...\...\...Page 9**

**How to Obtain AWG
Forms\...\...\...\...\...\...\...\...\...\...\...\....Page 10**

> **Inquiries\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....Page
> 10**

**Purpose**

> This document explains how Federal Agencies prepare administrative
> wage garnishment orders by using Standard Form 329 (SF-329). This
> document
>
> does not confer any rights that a person would not otherwise have, nor
> does failure to follow the instructions contained in this document
> necessarily
>
> invalidate an administrative wage garnishment order.

**Background**

> Wage garnishment is a process whereby an employer withholds amounts
>
> from an employee's wages and pays those amounts to the employee's
> creditor
>
> in satisfaction of a wage garnishment order issued by the creditor.
>
> A Federal Agency collecting delinquent, non-tax debt may garnish the
> wages
>
> of a debtor without first obtaining a court order. This process, known
> as Administrative Wage Garnishment (AWG), is authorized by section
> 31001(o)
>
> of the Debt Collection Improvement Act of 1996 (DCIA), Pub. L.
> 104-134, 110 Stat. 1321-358 (Apr. 26, 1998), codified at
> 31 U.S.C. \' 3720D. The rules
>
> and procedures governing administrative wage garnishment were
> published
>
> as a Final Rule in the *Federal Register* on May 6, 1998 (63 FR
> 25136).
>
> In accordance with the Final Rule, the Financial Management Service
> (FMS),
>
> a bureau of the U.S. Department of the Treasury, promulgated Standard
> Form 329 (SF-329) which Federal agencies are required to use to issue
> AWG orders.

**Paperwork Reduction Act**

> The administrative wage garnishment process under the DCIA is an
> administrative action taken by a Federal Agency against a debtor's
> employer. Therefore, any collection of information under the AWG order
> is exempt from the requirements of the Paperwork Reduction Act of 1980
> (44 U.S.C. \' 3501 *et seq.*).
>
> See 44 U.S.C. \' 3518(c)(1)(B)(ii)
>
> \- Act does not apply to the collection of information during the
> conduct of an administrative action involving an agency against
> specific individuals or entities.

**AWG Statutory and Regulatory Requirements**

> Federal Agencies must ensure that AWG orders are issued in accordance
> with the requirements of the DCIA and the Final Rule. Before issuing
> any AWG orders, agencies should review the requirements of
> 31 U.S.C. \' 3720D and 31 C.F.R. \' 285.11 (63 FR 25136, May 6, 1998)
> with their agency counsel.
>
> 1\. [Notice to the debtor.]{.underline} At least 30 days before an
> agency initiates garnishment proceedings, the agency must give the
> debtor written notice informing him or her of the nature and amount of
> the debt, the intention
>
> of the agency to collect the debt through deductions from pay, and an
> explanation of the debtor's rights regarding the proposed action.
>
> 2\. [Due process.]{.underline} The agency must provide the debtor with
> an opportunity to inspect and copy the agency's records related to the
> debt, to establish a repayment agreement, and to receive a hearing
> concerning the existence
>
> or amount of the debt and the terms of a repayment schedule.
>
> 3\. [Hearings.]{.underline} Agencies must prescribe regulations for
> the conduct of AWG hearings. A hearing must be held prior to the
> issuance of an AWG order if the debtor's request is timely received.
> For hearing requests that are not received in the specified time
> frame, an agency need not delay the issuance of the AWG order prior to
> conducting a hearing. The hearing official must issue a written
> decision no later than 60 days after the date on which the request for
> such hearing was received by the agency.

**Preparing the AWG Form**

> Unless the agency receives information that the agency believes
> justifies a delay or cancellation of the AWG order, the agency issuing
> the AWG order is required to send, by first class mail, an AWG order
> to the debtor's employer (1) within 30 days after the debtor fails to
> make a timely request for a hearing, or, (2) if the debtor made a
> timely request for a hearing, within 30 days after a final decision is
> made by the agency to proceed with the garnishment.
>
> The AWG Form (SF-329) consists of four documents. The agency issuing
>
> the AWG order should mail [all of the following 4 documents in one
> package]{.underline}
>
> to the employer after preparing the package in accordance with the
> instructions
>
> described in subsequent sections:

1\. Letter to Employer & Important Notice to Employer (SF-329A)

2\. Wage Garnishment Order (SF-329B)

3\. Wage Garnishment Worksheet (SF-329C)

4\. Employer Certification (SF-329D)

> **Letter to Employer & Important Notice to Employer (SF-329A)**
>
> The agency is not required to insert any information on the Letter to
> Employer
>
> & Important Notice to Employer. This document explains the purpose of
> the AWG order and alerts the employer to its responsibility to comply
> with the directions contained in the AWG order as well as the
> employer's legal obligations with respect to the AWG order.

**Wage Garnishment Order** **(SF-329B)**

> The Wage Garnishment Order must be completed by the agency issuing the
>
> AWG order in accordance with the following instructions.

+------+---------------------------------------------------------------+
| **   |                                                               |
| [Box |                                                               |
| \    |                                                               |
| #]{. |                                                               |
| unde |                                                               |
| rlin |                                                               |
| e}** |                                                               |
+======+===============================================================+
| 1    | *Date of this Order*. Insert the date the agency issued the   |
|      | AWG order. The date the agency issued the order is the date   |
|      | an agency official determines that the debtor failed to make  |
|      | a timely request for a hearing, or if the debtor made a       |
|      | timely request for a hearing, the date a final decision is    |
|      | made by the agency to proceed with the garnishment.           |
+------+---------------------------------------------------------------+
| 2    | *Date Mailed to Employer.* Insert the date the agency mailed  |
|      | the AWG order. Agencies should take the necessary steps to    |
|      | ensure that the AWG order is mailed the same day as the date  |
|      | inserted in this box.                                         |
+------+---------------------------------------------------------------+
| 3    | *Creditor Agency Tracking No.* Insert the number used by the  |
|      | agency                                                        |
|      |                                                               |
|      | to identify the AWG order.                                    |
+------+---------------------------------------------------------------+
| 4    | *Employee Name / Employee Alias Name.* Insert the full name   |
|      | of the debtor on file and any alias names by which the debtor |
|      | may be known at his place of employment.                      |
+------+---------------------------------------------------------------+
| 5    | *Employee Social Security No.* Insert the debtor's social     |
|      | security number.                                              |
+------+---------------------------------------------------------------+
| 6-7  | *Employer* and *Employer Mailing Address.* Insert the         |
|      | complete legal name and mailing address of the debtor's       |
|      | employer. Agencies should not abbreviate the name of the      |
|      | employer. For example, *Donut Shop*                           |
|      |                                                               |
|      | *of America* should not be shortened to *Donut Shop* as the   |
|      | latter may be a different entity. To the extent practical,    |
|      | agencies should contact the debtor's employer to obtain the   |
|      | legal name and address of the debtor's employer. For          |
|      | corporations, agencies may verify the information with the    |
|      | centralized corporation records maintained by the State in    |
|      | which the employer is doing business. For other entities,     |
|      | agencies may verify the information with centralized records  |
|      | maintained by the county or town in which the employer is     |
|      | doing business.                                               |
+------+---------------------------------------------------------------+
| 8-9  | *Creditor Agency* and *Creditor Agency Mailing Address for    |
|      | Correspondence.* Insert the complete name and mailing address |
|      | of                                                            |
|      |                                                               |
|      | the agency issuing the AWG order. Agencies should be          |
|      | identified as agencies of the United States, for example,     |
|      | *U.S. Department of the Treasury* rather than *Department of  |
|      | the Treasury*, to avoid confusion with State agencies with    |
|      | similar names.                                                |
+------+---------------------------------------------------------------+
| 1    | *Contact Name, Telephone No., Internet e-mail address,* and   |
| 0-13 | *Fax No.* Insert the name, telephone number (with area code), |
|      | internet e-mail address, and fax number (with area code) of a |
|      | person within the creditor agency who can respond promptly to |
|      | questions about the information contained in the AWG order.   |
+------+---------------------------------------------------------------+
| 1    | *Amount Due* and *As of (Month/Day/Year)*. Insert the total   |
| 4-15 | amount due and the date this amount was calculated. Agencies  |
|      | should ensure that the amount due includes all interest,      |
|      | penalties, and other costs as of the date listed in the *As   |
|      | of* box.                                                      |
+------+---------------------------------------------------------------+
| *    |                                                               |
| *[Se |                                                               |
| ctio |                                                               |
| n 1. |                                                               |
| Orde |                                                               |
| r]{. |                                                               |
| unde |                                                               |
| rlin |                                                               |
| e}** |                                                               |
+------+---------------------------------------------------------------+
| 1    | *ABA Routing No., Account No., Agency Location Code           |
| 6-20 | (ALC) No., Account Title,* and *Other information required    |
|      | (i.e., tracking no., debtor name, etc.)*. At this time, our   |
|      | system cannot receive and process electronic payment files    |
|      | from employers administrating AWG orders.                     |
|      |                                                               |
|      | Leave these fields blank.                                     |
+------+---------------------------------------------------------------+
| 21   | *Mailing address for check payments.* Insert the address to   |
|      | which the employer may mail check payments for amounts        |
|      | withheld under the AWG order.                                 |
+------+---------------------------------------------------------------+

> **[Section 2. Wage Garnishment Amount.]{.underline}**

(a) If the agency has agreed with the debtor to an exact dollar amount

> to be deducted from the debtor's wages, insert the dollar amount in
> Section 2(a). For example, if the agency and the debtor agree that
> \$100 per pay period may be deducted from the debtor's wages, insert
> *100* after the \$\_\_ in Section 2(a). If Section 2(a) is completed,
> the agency should skip Section 2(b) and proceed to *Creditor Agency
> Certification.*

(b) If Section 2(a) is not completed (because the agency and debtor have
    not agreed to an exact dollar amount to be deducted from the
    debtor's wages), the agency **[must]{.underline}** complete
    Section 2(b)(1). Insert the percentage of the debtor's disposable
    pay that the employer is ordered to deduct. **The percentage will be
    [15%]{.underline} unless the agency either agrees to a different
    percentage, or is ordered by a hearing official to accept a
    different percentage, e.g., 10%.**

> **[Creditor Agency Certification.]{.underline}**
>
> The head of the agency, or his or her delegatee,
> **[must]{.underline}** sign the Wage Garnishment Order. The delegatee
> must be an official or employee of the agency. In addition, the
> signatory's printed name and title should be printed or typed where
> indicated.

**Wage Garnishment Worksheet (SF-329C)**

> The agency is not required to insert any information on the Wage
> Garnishment Worksheet. The Worksheet may be used by the employer to
> calculate the Wage Garnishment Amount to be deducted from a debtor's
> disposable pay under the AWG order. At the agency's option, the agency
> may insert the *debtor name* and *social security number* as a
> convenience to the employer. The agency must include the Worksheet as
> part of the AWG order form even if the Wage Garnishment Order
> specifies a dollar amount to be withheld because the employer may wish
> to attach the Worksheet to the Employer Certification.
>
> See paragraph #3 of the *Employer Certification.*

**Employer Certification (SF-329D)**

> The information on the Employer Certification to be completed by the
> agency issuing the AWG order duplicates some of the information
> required to be provided by the agency on the Wage Garnishment Order
> (SF-329B) as instructed above. The agency issuing the AWG order must
> complete the following:
>
> *Date of this Order*. Insert the date the agency issued the order from
>
> Box #1 of the Wage Garnishment Order.
>
> *Date Mailed to Employer.* Insert the date the agency mailed the order
> from Box #2 of the Wage Garnishment Order.
>
> *Creditor Agency Tracking No.* Insert the number used by the agency to
> identify the AWG order from Box #3 of the Wage Garnishment Order.
>
> *Employee Name.* Insert the full name of the debtor and any alias
> names
>
> by which the debtor may be known from Box #4 of the Garnishment Order.
>
> *Employee Social Security No.* Insert the debtor's social security
> number from Box #5 of the Wage Garnishment Order.
>
> *Creditor Agency* and *Creditor Agency Mailing Address for
> Correspondence.* Insert the complete name and mailing address
>
> of the agency issuing the AWG order from Boxes #8-9 of the
>
> Wage Garnishment Order.
>
> The **[employer]{.underline}** is required to complete the rest of the
> Employer Certification
>
> and to return the completed Employer Certification to the agency
> issuing the AWG order. An authorized representative of the employer is
> required to sign
>
> and date the Employer Certification at the bottom of page 2 of the
>
> Employer Certification.

**How to Obtain AWG Forms**

Creditor agencies may obtain AWG forms (SF-329) from FMS' web site at:
http://www.fms.treas.gov/debt/awg.html#forms.

**Inquiries**

Any inquiries may be made to:

> U.S. Department of the Treasury
>
> Financial Management Service

Debt Management Services

Cross-Servicing Division

> 3700 East-West Highway
>
> Hyattsville, MD 20782
>
> Attn: Richard Burnham, Manager, Private Collection Branch
>
> Telephone: (202) 874-5879

Facsimile: (202) 874-8024

For additional information on AWG and or the entire debt collection
program,

please visit FMS' website at: http://fms.treas.gov/debt/crosserv.html*.*