Accounts and Reports Setoff Program
SETOFF WAGE ASSIGNMENT GUIDELINES
A Setoff Wage Assignment is a tool that
can be used when a debtor is a State of Kansas employee and the Setoff Program has matched
a debt owed (excluding child support) with their payroll earnings. K.S.A 75-6205(b) allows
the setoff against earnings to be subject to the same dollar limitations and restrictions
as for wage garnishments. This means we can take 25 percent of the debtor's
disposable earnings each payday until the debt is paid in full. Sometimes this can cause a
hardship for the debtor so we have a voluntary wage assignment that can be used. Use of
the Setoff Wage Assignment is at your discretion. It is not mandatory that a wage
assignment be offered or put in place. The amount of the wage assignment is based on the
debtor's gross wages. The Setoff Program has devised some guidelines to be followed
when agreeing to a wage assignment amount. These amounts are considerably lower than the
25 percent that could be withheld from each paycheck. These amounts are the minimum amount
acceptable; however higher amounts are permissible. If the debtor has more than one debt,
they will need to make arrangements for a wage assignment with each governmental entity
where the debt is owed. However, only one wage assignment will be in effect at a time
based on the hierarchy and age of the debts. A wage assignment cannot be continued and
applied to a subsequent debt without the agreement of the governmental entity where that
debt is owed. Below are the minimum guidelines for the Setoff Wage Assignments:
| Per Hourly Rate of Pay |
Minimum Amount Per Payroll Period |
| Under $9.25 |
$25.00 |
| $9.26 to $10.75 |
$35.00 |
| $10.76 to $11.75 |
$50.00 |
| $11.76 to $13.25 |
$60.00 |
An additional $10.00 increase in the wage assignment amount is added for each
additional $1.25 per hour in gross wages.
If a debtor calls and requests a Setoff Wage Assignment, you should ask the debtor to furnish
a copy of their payroll earnings to determine the debtor's rate of pay. If this is not convenient,
ask the debtor for the rate of pay and call the Setoff Program for verification. After the
pay information is obtained, you should fill in the debtor's name, social security number,
address, and the name of the governmental entity the debt is owed to. A brief explanation
is necessary only to identify the debt, i.e., Utilities, or Parking Fines. Please
fill in the current amount of the debt as well as the agreed upon amount of the wage assignment
according to the established guidelines. The Setoff Wage Assignment Form then is ready to
be sent to the debtor with instructions to return the form to the Setoff Program, P.O. Box
2713, Topeka, KS 66601-2713 as soon as possible so the change can be put in place before
the next payroll period.
