what does assignment of wages mean

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What Is a Wage Assignment?

How wage assignment works.

• Why Are Wage Assignments Voluntary?

Wage Garnishment

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• Debt Management

Wage Assignment: What It Means, How It Works

Wage assignment is the act of taking money directly from an employee's paycheck in order to pay back a debt obligation. Such an automatic withholding plan may be used to pay back a variety of debt obligations, including back taxes, defaulted student loan debt, and both child and spousal support payments.

Key Takeaways

• A wage assignment takes funds directly from an employee's paycheck to pay back a debt.
• How wage assignments are regulated varies by state, with some states even allowing for voluntary child support agreements.
• A wage garnishment is an involuntary deduction and requires a court order.

Wage assignments are typically incurred for debts that have gone unpaid for a prolonged period of time. Employees may sometimes opt for a voluntary wage assignment to pay for things like union dues or to contribute to a retirement fund.

A wage assignment is processed as part of an employer's payroll procedure. The employee's paycheck is decreased by the amount of the assignment and noted on their pay stub.

A wage assignment is often a lender's last resort to receive repayment from a borrower who has previously failed to pay a debt obligation.

Wage assignments are a valuable tool for collecting unpaid debts, but unfortunately, they may be associated with abusive lending practices . If you're struggling with your debt, one of the best debt relief companies or credit counseling agencies may be able to help you get back on track before a wage assignment is incurred.

What Makes Wage Assignments Voluntary?

In a voluntary wage assignment, a worker essentially asks their employer to withhold a portion of their paycheck and send it to a creditor to pay off a debt. Loan agreements may sometimes include a voluntary wage assignment clause in their terms should the borrower default on their loan.

Payday lenders often include voluntary wage assignments into their loan agreements to better their chances of being repaid. Laws regarding wage assignments vary by state.

For example, in West Virginia, wage assignments are capped at 25% of a worker's take-home earnings, the employee and the employer must sign the agreement, and agreements must be renewed annually. Under Illinois law, a lender cannot resort to wage assignment until a debt is 40 days in default. The wage assignment cannot continue for more than three years, and the worker can stop the wage assignment at any time.

Involuntary wage deductions, known as wage garnishments , require a court order and are most likely to be employed to collect spousal and child support payments that have been ordered by a court. Wage garnishments may also be used to collect unpaid court fines or student loans that have been defaulted on.

Several states allow individuals to sign up for voluntary child support agreements. In such a case, both parents must agree to a plan. Once that happens, a voluntary wage assignment may begin. If a child support or welfare agency is involved, they would have to approve any plan.

How Long Can I Have a Wage Assignment?

Since wage assignments are voluntary, the length of time that you use one can vary. Some loans include a wage assignment agreement, so you'll have to check the language of your loan to determine your obligation. Each state also has its own regulations regarding wage assignments.

How Much of My Income Can Go to Wage Assignments?

Every state has its own regulations, but typically 15–25% of your disposable income can be designated for wage assignments.

Is Wage Garnishment the Same as Wage Assignment?

While they are similar, wage garnishment and assignment are not the same. Wage garnishment is an involuntary paycheck deduction, typically ordered to repay child support, student loans, tax debt, or bankruptcy. A wage assignment is voluntary and may be used to repay a consumer debt.

Wage assignments may be a useful tool to help you pay down a debt. Wage assignments are voluntary but they may be hidden in the fine print of some loan products, so read everything carefully before signing. Check the regulations in your state to determine if your wage assignment is revocable.

West Virginia Division of Labor. " Wage Payment and Collection (WPC) Act: Payroll Deductions and Wage Assignments ," Page 3.

Illinois General Assembly. " (740 ILCS 170/) Illinois Wage Assignment Act ."

U.S. Department of Labor. " Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA) ."

Illinois Legal Aid. " Understanding Wage Assignment ."

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What Is Wage Assignment?

Definition and example of wage assignment, how wage assignment works, wage assignment vs. wage garnishment.

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A wage assignment is when creditors can take money directly from an employee’s paycheck to repay a debt.

Key Takeaways

• A wage assignment happens when money is taken from your paycheck by a creditor to repay a debt.
• Unlike a wage garnishment, a wage assignment can take place without a court order, and you have the right to cancel it at any time.
• Creditors can only take a portion of your earnings. The laws in your state will dictate how much of your take-home pay your lender can take.

A wage assignment is a voluntary agreement to let a lender take a portion of your paycheck each month to repay a debt. This process allows lenders to take a portion of your wages without taking you to court first.

Borrowers may agree to allow a lender to use wage assignments, for example, when they take out payday loans . The wage assignment can begin without a court order, although the laws about how much they can take from your paycheck vary by state.

For example, in West Virginia, wage assignments are only valid for one year and must be renewed annually. Creditors can only deduct up to 25% of an employee’s take-home pay, and the remaining 75% is exempt, including for an employee’s final paycheck.

If you agree to a wage assignment, that means you voluntarily agree to have money taken out of your paycheck each month to repay a debt.

State laws govern how soon a wage assignment can take place and how much of your paycheck a lender can take. For example, in Illinois, you must be at least 40 days behind on your loan payments before your lender can start a wage assignment. Under Illinois law, your creditor can only take up to 15% of your paycheck. The wage assignment is valid for up to three years after you signed the agreement.

Your creditor typically will send a Notice of Intent to Assign Wages by certified mail to you and your employer. From there, the creditor will send a demand letter to your employer with the total amount that’s in default.

You have the right to stop a wage assignment at any time, and you aren’t required to provide a reason why. If you don’t want the deduction, you can send your employer and creditor a written notice that you want to stop the wage assignment. You will still owe the money, but your lender must use other methods to collect the funds.

Research the laws in your state to see what percentage of your income your lender can take and for how long the agreement is valid.

Wage assignment and wage garnishment are often used interchangeably, but they aren’t the same thing. The main difference between the two is that wage assignments are voluntary while wage garnishments are involuntary. Here are some key differences:

Once you agree to a wage assignment, your lender can automatically take money from your paycheck. No court order is required first, but since the wage assignment is voluntary, you have the right to cancel it at any point.

Wage garnishments are the results of court orders, no matter whether you agree to them or not. If you want to reverse a wage garnishment, you typically have to go through a legal process to reverse the court judgment.

You can also stop many wage garnishments by filing for bankruptcy. And creditors aren’t usually allowed to garnish income from Social Security, disability, child support , or alimony. Ultimately, the laws in your state will dictate how much of your income you’re able to keep under a wage garnishment.

Creditors can’t garnish all of the money in your paycheck. Federal law limits the amount that can be garnished to 25% of the debtor’s disposable income. State laws may further limit how much of your income lenders can seize.

Illinois Legal Aid Online. “ Understanding Wage Assignment .” Accessed Feb. 8, 2022.

West Virginia Division of Labor. “ Wage Assignments / Authorized Payroll Deductions .” Accessed Feb. 8, 2022.

U.S. Department of Labor. “ Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA) .” Accessed Feb. 8, 2022.

Sacramento County Public Law Library. “ Exemptions from Enforcement of Judgments in California .” Accessed Feb. 8, 2022.

District Court of Maryland. “ Wage Garnishment .” Accessed Feb. 8, 2022.

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Wage Assignments and Garnishments: What Finance Leaders Need to Know

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Wage assignments and garnishments practices: Here are three things finance leaders must internally audit.

Wage assignments and wage garnishments are not the same. Each reflects a different process subject to different applicable laws. While there is always potential for a DOL Wage and Hour Division audit, financial leaders should internally audit their own processes to ensure compliance and efficiency while minimizing stress and anxiety for the employer and the employee. Here are three things to consider when conducting those audits.

1. Compliance

Wage assignments and wage garnishments differ in many ways. In fact, a wage assignment is not a garnishment. A wage assignment is a voluntary agreement between the employee and creditor where an amount is withheld from the employee's paycheck to satisfy a debt owed to a third-party recipient, whereas under a wage garnishment, the amount withheld from the employee's check is typically obtained through a court order initiated by the creditor.

Adding to the compliance challenge, there are several different types of wage garnishments, often with differing rules for each. For example, child support, bankruptcy and student loans are all types of wage garnishments. Wage garnishments for child support obligations are substantially governed by state law, which varies state to state, whereas garnishments for a bankruptcy plan are governed by federal law and garnishments for student loan debts are governed by either state or federal law, depending on the financing.

2. Efficiency

Businesses must be able to confirm when wage garnishments are initiated, when they cease and when more than one applies and in what order. This is what can make these withholdings complex — and messy. By having trackable systems in place, efficiency can be achievable.

3. Minimizing Stress and Anxiety

According to Workforce , wage garnishments can affect employee morale. Having wages withheld from paychecks may be a negative employee experience, especially when the employer has to get involved. For employers that are preparing audit-ready workplaces, these organizations face their own stress by potentially facing liability for noncompliance with respect to wage garnishment withholdings.

Having prudent processes in place may not only help with compliance and efficiency for the employer, but can also help alleviate stress for both the employee and the employer.

Learn about the ADP SmartCompliance® Wage Garnishment Module .

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• Child Support

Child Support Wage Assignments

(This may not be the same place you live)

  What is a Wage Assignment?

A wage assignment is a special process that allows the court to order an employer to make direct payments to the custodial parent from the supporting parent’s wages. You can also directly apply to the court for a wage assignment. Remember that the notice of this action must be served on the paying parent’s employer.

The employer will deduct child support like any other deduction from the paying parent’s paycheck and send the money to the custodial parent. If the non-paying parent holds stable employment, this is a valuable tool for starting this process.

What Can Impact Wage Assignment?

What is the wage assignment duration, how does child support wage assignments function, how do courts enforce child support orders, when do i need to contact a lawyer.

If the non-custodial parent changes jobs, he must immediately notify the child support agency so the new employer can begin making the wage assignment payments. If the non-custodial parent becomes unemployed and receives unemployment compensation, the child support payment will usually be deducted from the unemployment benefits.

If the non-custodial parent is not receiving unemployment benefits, he is still mandated to make child support payments. However, it is recommended to report the loss of income to the court to ensure that the child support order adjusts accordingly.

A wage assignment is available only if the non-custodial parent is a salaried employee. If the non-custodial parent is self-employed or is otherwise not subject to wage withholding, he instead may be ordered to provide the child support payments directly to the child support agency.

If the non-custodial parent fails to make the required payments, the amount owed may be deducted from the non-custodial parent’s federal and state income tax refunds. Furthermore, liens may be placed on the non-custodial parent’s property, and the property may be sold to satisfy the child support owed.

In short, the non-custodial parent cannot escape the obligation to pay child support by moving to another state because all states must enforce child support against out-of-state non-custodial parents. Each state has its own form of interstate enforcement legislation, such as the Uniform Reciprocal Enforcement of Support Act (URESA), which allows for the enforcement of support orders across state lines more uniformly.

The wage assignment continues until the obligation to pay child support ends, whether there is a custody modification, the non-custodial parent passes away, or the child becomes emancipated. Emancipation happens when the child reaches the state’s age of majority, which is eighteen, according to the majority of states.

Emancipation may also occur if the child marries, enlists in the armed services, or leaves the care and control of the custodial parent. However, if the child returns to live with the custodial parent before reaching the age of majority, the obligation to pay child support usually resumes, and the non-custodial parent’s income will again be subject to a wage assignment.

After the court decides the amount of child or spousal support, the wage assignment informs the employer how much to deduct from each paycheck and where to send the payment. With a wage assignment, if the parent ordered to pay support is regularly employed, the employer will deduct the support payments directly from their paycheck.

Most support is paid this way, and federal, and state laws mandate it in almost all child support cases. Typically, it is the employer’s responsibility to withhold the wages if there is a wage assignment. If the parent has other wage assignments, child support is first deducted before other withholding orders. Spousal or partner support assignments come after child support wage assignments are in place.

Wage assignments are usually incurred for debts that have gone unpaid for a long time. Wage assignments can be split into two categories: voluntary and involuntary. Employees may sometimes choose a voluntary wage assignment to pay union dues or contribute to a retirement fund. Moreover, employees may even voluntarily opt into a wage assignment plan as a part of a payday loan repayment promise.

When a wage assignment is undertaken voluntarily or required by a court and served to an employer, it is considered part of an employer’s payroll procedure. The employee has to do nothing, as their paycheck is already decreased by the amount of the assignment and noted on their pay stub.

As child support is usually ordered as a monthly amount, the calculation is provided to the employer as to the proper amount to withhold from each paycheck based on whether the employee is paid on a weekly, bi-weekly, semi-monthly, or other basis to correspond to the monthly amount ordered.

For instance, if child support was ordered for $200 a month and the employee was paid weekly, the withholding order would direct the employer to take out $48.43 from each paycheck for child support. Once the employer removes the calculated amount from the parent’s paycheck, they send it to the Support Payment Clearinghouse. The payment is then accounted for and recorded by the Clearinghouse and is sent on to the custodial parent .

Generally, if the non-custodial parent starts a new job, they are responsible for giving the wage assignment to their new employer. They are responsible for notifying the Clerk of the Superior Court and Support Payment Clearinghouse of their new employer’s contact information within 10 days. An employer who fails, without a good cause, to adhere to the terms of a wage assignment is liable for the amount overdue.

The employer may be entitled to charge a small administrative fee for processing the required payments. Still, it is against the law for an employer to terminate an employee due to a court-ordered wage assignment for child support. A wage assignment is not mandated when the non-custodial parent is self-employed, not employed, or does not have a regular source of income. In those situations, they are responsible for making payments directly to the Support Payment Clearinghouse.

Judges enforce child support orders, usually with “income assignments.” When judges form child support orders, they order the paying parent’s employer to take the child support out of their wages and send it to the Department of Revenue (DOR/CSE) Child Support Enforcement Division.

The DOR then sends the child support order to you. As mentioned earlier, child support taken out of the wages is called an “income assignment” or “wage assignment.” The income assignment is one of the primary ways judges ensure that child support is paid on time. In some cases, parents fall behind in paying their child support.

In some situations, they disobey the child support order. When that happens, you may have to return to the court to enforce your child support order . Making sure the paying parent follows through with the child support order is considered “enforcing” the order.

Courts can enforce child support orders by holding the paying parent in contempt. DOR/CSE can enforce child support orders by:

• Collecting overdue child support;
• Levying your bank account;
• Charging interest and penalties;
• Increasing the amount withheld from your paycheck by 25%;
• Placing a lien on your real estate or personal property;
• Seizing your personal property;
• Suspending your license;
• Intercepting your tax refunds;
• Making it hard to get credit and;
• Filing a Complaint for Contempt.

If you do not receive the required child support payments or have failed to make the necessary payments. Both situations have legal remedies available, and you will need to seek a local child support attorney to determine your options within your jurisdiction.

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wage assignment

• A financial procedure where an employee authorizes a chunk of their salary to be transferred to another party, often a creditor, prior to the employee receiving the pay
• The debtor accepted a wage assignment to pay off his loan over time.
• The company implemented a wage assignment to streamline child support payments for its employees.
• A wage assignment can help creditors ensure they receive the money they are owed.
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• How to Obtain a Garnishment Order
• How to Stop Wage Garnishment?
• Bankruptcy and Wage Garnishment
• Garnishment Laws Blog

Wage Assignments in Consumer and Other Contracts

Most of the time an employee knows when his wages are about to be garnished: He is sued, the court enters a judgment against him for the amount owed, and thereafter a wage garnishment order ensues. The employee has plenty of time to plan for it, forewarn his employer, and make the process as palatable as possible, should a repayment arrangement not be possible.

Not so for many of the so-called “voluntary” wage assignments that are being included in consumer credit and loan agreements with greater regularity than ever before. These provisions allow the creditor to skip the formality, delay, and expense of the legal process altogether, and go straight to the employer with a demand for garnishment.

An employee typically does not learn about this kind of garnishment until after the garnishment has taken place and he notices his pay check is short.

Difference between Wage Assignments and Wage Garnishment Orders

Technically speaking, a wage assignment is a provision in a private agreement — often a consumer credit agreement like the ones used in buying a refrigerator.

The “wage assignment” provision assigns the borrower’s future wages to the creditor in the event of default by non-payment. If a default occurs, the creditor in effect forecloses on the security (the wages) by sending a garnishment demand to the employer. Usually, the letter is written by the creditor’s attorney or billing department.

To enforce a wage assignment, no court process is involved. That’s the nature of the provision. It says no court process need be involved and authorizes the creditor to skip the time and expense of court and go straight to the employer. It also, of necessity, eliminates the debtor’s opportunity to challenge the debt in court or seek limitations on the garnishment.

Most garnishments are based on a judgment or court order and constitute official orders of the court. The request for garnishment is made to the court and the court grants the request by issuing a garnishment order. This is the case for most wage garnishments for child support.

Types of Voluntary Wage Assignments

Voluntary wage assignments, often simply called “wage assignments,” are those that the indebted employee enters into by agreement. He may agree to it by signing a consumer credit or loan agreement, or he may agree to repay a debt by entering into a repayment agreement with a wage assignment provision.

The typical wage assignment provision allows the employer to take the employee’s future wages as security for the debt involved. In the event of default or nonpayment, it authorizes the creditor to go straight to the employer with a demand for wage garnishment, no court filing or judgment required.

Considering these wage assignments as “voluntarily” is a stretch. Most borrowers don’t read the fine print in consumer contracts and loan papers, have no bargaining strength to oppose these provisions even if they want to, and don’t learn about the wage assignment until it is too late to do anything about it.

Nonetheless, unlike a court order, they do have a voluntary component in that the borrower chose to obtain the credit and afterwards to use it to buy goods or services or receive cash.

Federal Garnishment Law Does Not Protect Wage Assignments

In 1970, Congress passed Title III of the Consumer Credit Protection Act. Under that Act, the federal government took control over wage garnishment proceedings for the first time.

Generally speaking, this law limits the extent to which earnings can be garnished to 25% of “disposable earnings” or to amounts above 30 times minimum wage, whichever is less. It also prohibits the employer from terminating an employee for any wage garnishment based on a single debt.

The definition of “disposable earnings” is key to the determination of the maximum allowed garnishment. “Disposable earnings” means earnings after reduction for legally-required deductions like federal, state and local taxes, the employee’s share of State Unemployment Insurance and Social Security, and Worker’s Compensation.

Importantly, the permitted deductions DO NOT include sums withheld as part of a voluntary wage assignment; as such deductions are not legally required. What this means is that wage garnishment protections do not take into account the effect of voluntary wage assignments. Also, they do not apply to real estate purchases (which have specific contracts).

Furthermore, because wage assignments are not technically considered garnishment under federal law, an employer can lawfully terminate an employee for a single garnishment based on a voluntary wage assignment. Put another way, the anti-termination protections of federal law do not apply to wage assignments.

State Law Limitations on Wage Assignments

Many states have passed laws making wage assignments invalid, due to their intrusive and potentially devastating effect on borrowers. Some states bar any form of wage assignment, while others limit wage assignments to only child or spousal support.

Still others require the written consent of both spouses, or the execution of an entirely separate document addressing the assignment (so as to prohibit it from being buried in the fine print). In all cases, the employer need not comply with an illegal wage assignment, and often would be legally liable for doing so.

Needless to say, the field of voluntary wage assignments is a complicated one. Consulting with an experienced labor and employment, debtor-creditor, and/or consumer counsel is an important part of properly navigating this area of employment.

Citations/references

Federal statute: title iii, consumer credit protection act (ccpa), 15 usc, §§1671 et seq., code of federal regulations: 29 cfr part 870, u.s. wage and hour division: fact sheet #30 – the federal wage garnishment law, consumer credit protection act’s title iii (ccpa), field operations handbook – 02/09/2001, rev. 644, chapter 16, title iii – consumer credit protection act (wage garnishment), summary of state laws on garnishment: http://www.nolo.com/legal-encyclopedia/free-books/employee-rights-book/chapter2-9.html.

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Wage Assignment Overview

Usually, a creditor has to go to court to take part of your wages. This is called wage garnishment .

However, if you signed a form agreeing to a wage assignment, a creditor can take your wages without first going to court. You may agree to a wage assignment when you sign a loan contract. This allows your creditor to have money deducted from your wages if you don't pay.

Starting a Wage Assignment

You must be at least 40 days behind on your loan before the creditor can have your employer start taking money out of your paycheck.

First, the creditor must mail you and your employer a Notice of Intent to Assign Wages 20 days before they can make the demand. The notice has to be sent to you by certified or registered mail. You should receive advance warning that money will be deducted from your wages.

The notice must follow a specific form and must include the following information:

• be sent to you and your employer;
• be sent by registered or certified mail;
• inform you the creditor will demand part of your wages from your employer in 20 days;
• include a copy of the wage assignment; 
• tell you how much you owe; 
• include your options to respond to the notice; and
• include a revocation notice form.

The creditor then must send a demand letter to your employer. The demand must contain the correct amount in default and include a copy of the assignment. If the notice or demand does not follow the requirements of the law, they have no legal effect.

If you do not revoke the wage assignment, then 20 days later (once the loan is 40 days past due), your employer will start paying a portion of your paycheck to the creditor to pay off your debt.

Day One: Loan is past due

Day 20: Creditor sends notice

Day 40: Wage assignment begins.

Amount of a Wage Assignment

The creditor may take from your paycheck whichever amount is less between the following two options:

• 15% of your total wages, salary, commission, and bonuses for any workweek; or
• The amount your take-home pay (after taxes and other withholdings) for a week is over $630 (which is 45 times the 2024 state minimum hourly wage ).

That means that you can only have a wage assignment if you take home over $630 per week.

Stopping a Wage Assignment

You can stop a wage assignment at any time for any reason. If you don't want the deduction to happen, write a letter to your employer and creditor stating you are canceling the wage assignment. Remember, you will still owe the money. The creditor can use other methods to collect it. That probably means a court case, which may end with an involuntary wage garnishment.

Length of a Wage Assignment

A wage assignment is good for 3 years from the date you signed the wage assignment. But, if you changed jobs after you signed the wage assignment, the wage assignment is only good for 2 years from the date you signed the wage assignment.   If a creditor tries to collect money from your paycheck after the time period expires, you should talk to a lawyer. You might be able to sue the creditor in court.

Note : Child support and student loans can also result in garnishments without a court case.

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Wage assignment and employers’ responsibilities

Tough economic times raise some tricky HR issues—for example, when an employee’s financial straits begin to affect his employer.

Must we honor a payday loan wage assignment?

Q. An employee borrowed money from a payday loan service at a very high interest rate that I feel is unfair. The payday loan service sent me a “wage assignment” notice and told me that our company must withhold money from his paychecks.  What is a wage assignment, and does our company actually have to honor it? A. A wage assignment is a document that allows a creditor to attach part of the employee’s wages if the employee fails to pay a specific debt. The creditor does not have to obtain a judgment in a court proceeding before requesting payment. Under the Illinois Wage Assignment Act (740 ILCS 170), private employers are obligated to honor a creditor’s properly served demand for a valid wage assignment, unless an employee presents a timely, valid , written defense to the wage assignment.

What constitutes a valid assignment?

Q. How can I tell if a wage assignment is valid? How long is it valid? A. A valid wage assignment document must have the words “Wage Assignment” printed or written in boldface letters of not less than ¼ inch in height at the head of the wage assignment and one inch above or below the line where the employee signs the assignment. The employee must have signed the document in person, and the document must show the date of execution, the employee’s Social Security number, the name of the employer at the time of execution, the amount of money loaned or the price of the articles sold or other consideration given, the rate of interest or time-price differential to be paid, if any, and the date on which such payments are due. A wage assignment is valid for no more than three years after the employee signs it and the employer’s name appears on it. If the employee changes jobs, the wage assignment is valid for two years, even though the new employer’s name does not appear on the assignment.

Handling wage assignments

Q. How does the wage assignment process start? A. Assuming that the wage assignment document complies with the formal requirements, the creditor must serve “demand to withhold” on the employer. The demand is valid only if:

The employee has defaulted on the debt secured by the assignment for more than 40 days, and the default has continued to the date of the demand.

The demand contains a correct statement of the amount the employee is in default, and the creditor provides an original or a photocopy of the assignment to the employer.

The creditor has served a “notice of intention to make the demand” upon the employee, with a copy to the employer, by registered or certified mail not less than 20 days before serving the demand.

Putting on the brakes

Q. Can an employee stop the wage assignment process? A. The employee does have a right to contest the demand. If an employee has a legal defense to the wage assignment, the employee may—within 20 days after receiving a notice of demand or within five days after the employer is served with the demand—notify the employer, in writing, of any defense to the wage assignment and send a copy of the written defense to the creditor by registered or certified mail.   As a result, the employee’s wages are not subject to a demand served by the creditor unless the employer receives a copy of a subsequent written agreement between the creditor and the employee authorizing such payments. Similarly, if the creditor receives a copy of the defense prior to serving its demand upon the employer, the creditor may not serve the demand upon the employer.  Whether the employee’s defense is legally valid is not an issue the employer must resolve. Instead, the employee and the creditor may attempt to reach another agreement or the creditor may simply bring a separate lawsuit against the employee to collect an outstanding debt. 

Calculating the wage assignment payment

Q. How much must the employer withhold—and when? A. The employer must begin payment to the creditor no sooner than five business days after service of such a demand.  The employer must withhold the lesser of:

15% of weekly gross wages

The amount by which the disposable earnings for a week (pay remaining after federal and state taxes, Social Security deductions and any other amounts required by law to be withheld, including required retirement contributions) exceed 45 times the federal minimum wage, unless a notice of defense is received within that five-day period.

The employer shall be paid a fee of $12 for each wage assignment. That $12 is credited against the debt.

WHAT TO READ NEXT

Table of Contents

Wage assignment.

A wage assignment is a voluntary agreement between an employee and a creditor, in which the employee authorizes their employer to deduct a specified amount from their wages to repay a debt owed to the creditor. This arrangement bypasses the need for wage garnishment, which requires a court order. Wage assignments are typically used for repaying loans, child support, or other financial obligations.

The phonetic pronunciation of the keyword “Wage Assignment” is:weɪʤ əˈsʌɪnmənt

Key Takeaways

• Wage Assignment is a voluntary agreement: Wage assignment occurs when a debtor agrees to a voluntary arrangement in which their employer dedicates a portion of their income to pay off the debtor’s outstanding debt. This allows the creditor to receive regular payments directly from the source of income without involving the debtor in the process.
• Wage Assignment is different from Wage Garnishment: While both terms involve the allocation of a debtor’s income towards outstanding debts, they differ in their implementation. Wage assignment is usually a voluntary process, while wage garnishment is a compulsory action taken by the court. In wage garnishment, the creditor has to obtain a legal order to collect the debt directly from the debtor’s employer.
• Revocability and Limitations of Wage Assignment: Depending on the jurisdiction, debtors might have the right to revoke a wage assignment at any time. Furthermore, certain limitations may be imposed on the amount assigned from wages—for instance, a percentage cap of the disposable income or a prohibition of assigning wages for specific categories of debts like child support or spousal support.

The term Wage Assignment holds significant importance in the realm of business and finance as it refers to a voluntary agreement between an employee and a creditor, in which the employee authorizes their employer to deduct a predetermined part of their salary to repay a debt. The importance of this arrangement stems from its ability to ensure that debts are responsibly and consistently managed, enabling an employee to pay off their financial obligations in a structured manner. Additionally, wage assignments also provide the creditors with a sense of assurance that they will indeed receive their outstanding payments, consequently enhancing the stability and predictability of financial transactions. Moreover, this safeguarded method of repaying loans can potentially improve the overall creditworthiness of an individual, providing access to more favorable loan terms and fostering a healthier financial ecosystem in the business and finance sectors.

Explanation

A wage assignment serves as a critical financial tool that enables individuals with outstanding debts to fulfill their monetary obligations by having a predetermined portion of their income allocated to pay off the debts directly. The purpose of wage assignment is to ensure that the debtor consistently makes scheduled payments towards their debt, facilitating a smooth repayment process while minimizing the possibility of default. This financial instrument proves to be useful not just for the debtor, who steadily works towards debt repayment, but also benefits the creditor, who receives regular payments without having to engage in more extreme debt collection practices.Wage assignment is also implemented in circumstances where individuals are required to make certain obligatory payments, such as child support or alimony, following a legal ruling. In such cases, a wage assignment ensures that the responsible party adheres to the mandated financial commitments. Moreover, it provides a sense of security to the recipients of these payments, as they can rely on a consistent source of financial support. Overall, wage assignment plays a crucial role in enabling debtors to fulfill their financial responsibilities in a more manageable, controlled manner, while sparing creditors from stressful and potentially costly debt recovery efforts.

A wage assignment is a voluntary agreement by an employee to transfer a portion of their future wages to a creditor in order to repay a debt. Here are three real-world examples related to wage assignments:1. Loan Repayment: John takes out a personal loan from a bank to cover an unexpected medical emergency. He agrees to a wage assignment, allowing the bank to directly deduct a specified portion of his bi-weekly paycheck until the loan is fully repaid.2. Child Support Wage Assignment: Jane, a divorced mother of two, has a court-ordered wage assignment in place to ensure her ex-spouse, Jim, regularly contributes to child support payments. Jim’s employer is legally obligated to withhold the assigned amount from his salary and send it directly to Jane or the designated child support agency.3. Payroll Advance Deduction: Sarah is struggling to manage her expenses and requests a payroll advance from her employer to cover immediate financial needs. Her employer agrees and she signs a wage assignment, permitting her employer to withhold the amount she borrowed from her future paychecks until the advance is repaid in full.

Frequently Asked Questions(FAQ)

A wage assignment is a voluntary agreement between an employee and a creditor in which the employee authorizes their employer to withhold a specific amount of their earnings and send it directly to the creditor to repay a debt.

Yes, a wage assignment is a legally binding agreement. Once authorized by the employee, the employer is required to comply with the terms of the agreement.

Wage Assignment is a voluntary agreement initiated by the employee or a request from the creditor, whereas Wage Garnishment is a mandatory, court-ordered process in which a creditor obtains a judgment against the debtor and then requires the debtor’s employer to withhold a portion of their wages until the debt is paid off.

Yes, most wage assignment agreements include a provision that allows the employee to revoke the agreement at any time. However, it is important to review the terms of your specific agreement and notify your employer in writing if you wish to revoke your wage assignment.

The amount that can be assigned depends on the terms agreed upon between the employee and the creditor. However, both federal and state laws typically impose limits on the percentage of an employee’s pay that can be assigned to ensure the employee has a reasonable amount of income left after the assignment.

There may be limitations on what types of debts qualify for wage assignment, depending on the laws and regulations in your jurisdiction. Generally, wage assignments are used to repay unsecured debts like credit card balances, personal loans, or medical bills.

The employer must be notified of the wage assignment, and they are legally required to comply with the terms of the agreement once authorized by the employee. It is not necessary for the employer to consent, but the employee must provide the employer with notice of the agreement.

A wage assignment in itself does not directly impact your credit score; however, it may be an indicator that you are experiencing financial difficulties, which can affect your credit in other ways. Repaying your debts through a wage assignment will generally help improve your credit score over time as the outstanding balance on the debt is reduced.

Related Finance Terms

• Garnishment
• Payroll Deduction
• Debt Repayment
• Voluntary Wage Assignment

Sources for More Information

• Investopedia: https://www.investopedia.com/terms/w/wageassignment.asp
• Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/knowledge/other/wage-assignment/
• The Balance: https://www.thebalance.com/what-is-a-wage-assignment-462355
• NOLO: https://www.nolo.com/legal-encyclopedia/wage-assignment-creditors-applying-paycheck.html

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What is “Assignment of Income” Under the Tax Law?

Gross income is taxed to the individual who earns it or to owner of property that generates the income. Under the so-called “assignment of income doctrine,” a taxpayer may not avoid tax by assigning the right to income to another.

Specifically, the assignment of income doctrine holds that a taxpayer who earns income from services that the taxpayer performs or property that the taxpayer owns generally cannot avoid liability for tax on that income by assigning it to another person or entity. The doctrine is frequently applied to assignments to creditors, controlled entities, family trusts and charities.

A taxpayer cannot, for tax purposes, assign income that has already accrued from property the taxpayer owns. This aspect of the assignment of income doctrine is often applied to interest, dividends, rents, royalties, and trust income. And, under the same rationale, an assignment of an interest in a lottery ticket is effective only if it occurs before the ticket is ascertained to be a winning ticket.

However, a taxpayer can shift liability for capital gains on property not yet sold by making a bona fide gift of the underlying property. In that case, the donee of a gift of securities takes the “carryover” basis of the donor.  

For example, shares now valued at $50 gifted to a donee in which the donor has a tax basis of $10, would yield a taxable gain to the donee of its eventual sale price less the $10 carryover basis. The donor escapes income tax on any of the appreciation.

For guidance on this issue, please contact our professionals at 315.242.1120 or [email protected] .

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Medicare Assignment: Everything You Need to Know

Medicare assignment.

• Providers Accepting Assignment
• Providers Who Do Not
• Billing Options
• Assignment of Benefits
• How to Choose

Frequently Asked Questions

Medicare assignment is an agreement between Medicare and medical providers (doctors, hospitals, medical equipment suppliers, etc.) in which the provider agrees to accept Medicare’s fee schedule as payment in full when Medicare patients are treated.

This article will explain how Medicare assignment works, and what you need to know in order to ensure that you won’t receive unexpected bills.

fizkes / Getty Images

There are 35 million Americans who have Original Medicare. Medicare is a federal program and most medical providers throughout the country accept assignment with Medicare. As a result, these enrollees have a lot more options for medical providers than most of the rest of the population.

They can see any provider who accepts assignment, anywhere in the country. They can be assured that they will only have to pay their expected Medicare cost-sharing (deductible and coinsurance, some or all of which may be paid by a Medigap plan , Medicaid, or supplemental coverage provided by an employer or former employer).

It’s important to note here that the rules are different for the 29 million Americans who have Medicare Advantage plans. These beneficiaries cannot simply use any medical provider who accepts Medicare assignment.

Instead, each Medicare Advantage plan has its own network of providers —much like the health insurance plans that many Americans are accustomed to obtaining from employers or purchasing in the exchange/marketplace .

A provider who accepts assignment with Medicare may or may not be in-network with some or all of the Medicare Advantage plans that offer coverage in a given area. Some Medicare Advantage plans— health maintenance organizations (HMOs) , in particular—will only cover an enrollee’s claims if they use providers who are in the plan's network.

Other Medicare Advantage plans— preferred provider organizations (PPOs) , in particular—will cover out-of-network care but the enrollee will pay more than they would have paid had they seen an in-network provider.

Original Medicare

The bottom line is that Medicare assignment only determines provider accessibility and costs for people who have Original Medicare. People with Medicare Advantage need to understand their own plan’s provider network and coverage rules.

When discussing Medicare assignment and access to providers in this article, keep in mind that it is referring to people who have Original Medicare.

How to Make Sure Your Provider Accepts Assignment

Most doctors, hospitals, and other medical providers in the United States do accept Medicare assignment.

Provider Participation Stats

According to the Centers for Medicare and Medicaid Services, 98% of providers participate in Medicare, which means they accept assignment.

You can ask the provider directly about their participation with Medicare. But Medicare also has a tool that you can use to find participating doctors, hospitals, home health care services, and other providers.

There’s a filter on that tool labeled “Medicare-approved payment.” If you turn on that filter, you will only see providers who accept Medicare assignment. Under each provider’s information, it will say “Charges the Medicare-approved amount (so you pay less out-of-pocket).”

What If Your Provider Doesn’t Accept Assignment?

If your medical provider or equipment supplier doesn’t accept assignment, it means they haven’t agreed to accept Medicare’s approved amounts as payment in full for all of the services.

These providers can still choose to accept assignment on a case-by-case basis. But because they haven’t agreed to accept Medicare assignment for all services, they are considered nonparticipating providers.

Note that "nonparticipating" does not mean that a provider has opted out of Medicare altogether. Medicare will still pay claims for services received from a nonparticipating provider (i.e., one who does not accept Medicare assignment), whereas Medicare does not cover any of the cost of services obtained from a provider who has officially opted out of Medicare.

If a Medicare beneficiary uses a provider who has opted out of Medicare, that person will pay the provider directly and Medicare will not be involved in any way.

Physicians Who Have Opted Out

Only about 1% of all non-pediatric physicians have opted out of Medicare.

For providers who have not opted out of Medicare but who also don’t accept assignment, Medicare will still pay nearly as much as it would have paid if you had used a provider who accepts assignment. Here’s how it works:

• Medicare will pay the provider 95% of the amount they would pay if the provider accepted assignment.
• The provider can charge the person receiving care more than the Medicare-approved amount, but only up to 15% more (some states limit this further). This extra amount, which the patient has to pay out-of-pocket, is known as the limiting charge . But the 15% cap does not apply to medical equipment suppliers; if they do not accept assignment with Medicare, there is no limit on how much they can charge the person receiving care. This is why it’s particularly important to make sure that the supplier accepts Medicare assignment if you need medical equipment.
• The nonparticipating provider may require the person receiving care to pay the entire bill up front and seek reimbursement from Medicare (using Form CMS 1490-S ). Alternatively, they may submit a claim to Medicare on behalf of the person receiving care (using Form CMS-1500 ).
• A nonparticipating provider can choose to accept assignment on a case-by-case basis. They can indicate this on Form CMS-1500 in box 27. The vast majority of nonparticipating providers who bill Medicare choose to accept assignment for the claim being billed.
• Nonparticipating providers do not have to bill your Medigap plan on your behalf.

Billing Options for Providers Who Accept Medicare

When a medical provider accepts assignment with Medicare, part of the agreement is that they will submit bills to Medicare on behalf of the person receiving care. So if you only see providers who accept assignment, you will never need to submit your own bills to Medicare for reimbursement.

If you have a Medigap plan that supplements your Original Medicare coverage, you should present the Medigap coverage information to the provider at the time of service. Medicare will forward the claim information to your Medigap insurer, reducing administrative work on your part.

Depending on the Medigap plan you have, the services that you receive, and the amount you’ve already spent in out-of-pocket costs, the Medigap plan may pay some or all of the out-of-pocket costs that you would otherwise have after Medicare pays its share.

(Note that if you have a type of Medigap plan called Medicare SELECT, you will have to stay within the plan’s network of providers in order to receive benefits. But this is not the case with other Medigap plans.)

After the claim is processed, you’ll be able to see details in your MyMedicare.gov account . Medicare will also send you a Medicare Summary Notice. This is Medicare’s version of an explanation of benefits (EOB) , which is sent out every three months.

If you have a Medigap plan, it should also send you an EOB or something similar, explaining the claim and whether the policy paid any part of it.

What Is Medicare Assignment of Benefits?

For Medicare beneficiaries, assignment of benefits means that the person receiving care agrees to allow a nonparticipating provider to bill Medicare directly (as opposed to having the person receiving care pay the bill up front and seek reimbursement from Medicare). Assignment of benefits is authorized by the person receiving care in Box 13 of Form CMS-1500 .

If the person receiving care refuses to assign benefits, Medicare can only reimburse the person receiving care instead of paying the nonparticipating provider directly.

Things to Consider Before Choosing a Provider

If you’re enrolled in Original Medicare, you have a wide range of options in terms of the providers you can use—far more than most other Americans. In most cases, your preferred doctor and other medical providers will accept assignment with Medicare, keeping your out-of-pocket costs lower than they would otherwise be, and reducing administrative hassle.

There may be circumstances, however, when the best option is a nonparticipating provider or even a provider who has opted out of Medicare altogether. If you choose one of these options, be sure you discuss the details with the provider before proceeding with the treatment.

You’ll want to understand how much is going to be billed and whether the provider will bill Medicare on your behalf if you agree to assign benefits (note that this is not possible if the provider has opted out of Medicare).

If you have supplemental coverage, you’ll also want to check with that plan to see whether it will still pick up some of the cost and, if so, how much you should expect to pay out of your own pocket.

A medical provider who accepts Medicare assignment is considered a participating provider. These providers have agreed to accept Medicare’s fee schedule as payment in full for services they provide to Medicare beneficiaries. Most doctors, hospitals, and other medical providers do accept Medicare assignment.

Nonparticipating providers are those who have not signed an agreement with Medicare to accept Medicare’s rates as payment in full. However, they can agree to accept assignment on a case-by-case basis, as long as they haven’t opted out of Medicare altogether. If they do not accept assignment, they can bill the patient up to 15% more than the Medicare-approved rate.

Providers who opt out of Medicare cannot bill Medicare and Medicare will not pay them or reimburse beneficiaries for their services. But there is no limit on how much they can bill for their services.

A Word From Verywell

It’s in your best interest to choose a provider who accepts Medicare assignment. This will keep your costs as low as possible, streamline the billing and claims process, and ensure that your Medigap plan picks up its share of the costs.

If you feel like you need help navigating the provider options or seeking care from a provider who doesn’t accept assignment, the Medicare State Health Insurance Assistance Program (SHIP) in your state may be able to help.

A doctor who does not accept Medicare assignment has not agreed to accept Medicare’s fee schedule as payment in full for their services. These doctors are considered nonparticipating with Medicare and can bill Medicare beneficiaries up to 15% more than the Medicare-approved amount.

They also have the option to accept assignment (i.e., accept Medicare’s rate as payment in full) on a case-by-case basis.

There are certain circumstances in which a provider is required by law to accept assignment. This includes situations in which the person receiving care has both Medicare and Medicaid. And it also applies to certain medical services, including lab tests, ambulance services, and drugs that are covered under Medicare Part B (as opposed to Part D).

In 2021, 98% of American physicians had participation agreements with Medicare, leaving only about 2% who did not accept assignment (either as a nonparticipating provider, or a provider who had opted out of Medicare altogether).

Accepting assignment is something that the medical provider does, whereas assignment of benefits is something that the patient (the Medicare beneficiary) does. To accept assignment means that the medical provider has agreed to accept Medicare’s approved fee as payment in full for services they provide.

Assignment of benefits means that the person receiving care agrees to allow a medical provider to bill Medicare directly, as opposed to having the person receiving care pay the provider and then seek reimbursement from Medicare.

Centers for Medicare and Medicaid Services. Medicare monthly enrollment .

Centers for Medicare and Medicaid Services. Annual Medicare participation announcement .

Centers for Medicare and Medicaid Services. Lower costs with assignment .

Centers for Medicare and Medicaid Services. Find providers who have opted out of Medicare .

Kaiser Family Foundation. How many physicians have opted-out of the Medicare program ?

Center for Medicare Advocacy. Durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) updates .

Centers for Medicare and Medicaid Services. Check the status of a claim .

Centers for Medicare and Medicaid Services. Medicare claims processing manual. Chapter 26 - completing and processing form CMS-1500 data set .

Centers for Medicare and Medicaid Services. Ambulance fee schedule .

Centers for Medicare and Medicaid Services. Prescription drugs (outpatient) .

By Louise Norris Norris is a licensed health insurance agent, book author, and freelance writer. She graduated magna cum laude from Colorado State University.

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Understanding the Assignment of Mortgages: What You Need To Know

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A mortgage is a legally binding agreement between a home buyer and a lender that dictates a borrower's ability to pay off a loan. Every mortgage has an interest rate, a term length, and specific fees attached to it.

Written by Attorney Todd Carney .  Updated November 26, 2021

If you’re like most people who want to purchase a home, you’ll start by going to a bank or other lender to get a mortgage loan. Though you can choose your lender, after the mortgage loan is processed, your mortgage may be transferred to a different mortgage servicer . A transfer is also called an assignment of the mortgage. 

No matter what it’s called, this change of hands may also change who you’re supposed to make your house payments to and how the foreclosure process works if you default on your loan. That’s why if you’re a homeowner, it’s important to know how this process works. This article will provide an in-depth look at what an assignment of a mortgage entails and what impact it can have on homeownership.

Assignment of Mortgage – The Basics

When your original lender transfers your mortgage account and their interests in it to a new lender, that’s called an assignment of mortgage. To do this, your lender must use an assignment of mortgage document. This document ensures the loan is legally transferred to the new owner. It’s common for mortgage lenders to sell the mortgages to other lenders. Most lenders assign the mortgages they originate to other lenders or mortgage buyers.

Home Loan Documents

When you get a loan for a home or real estate, there will usually be two mortgage documents. The first is a mortgage or, less commonly, a deed of trust . The other is a promissory note. The mortgage or deed of trust will state that the mortgaged property provides the security interest for the loan. This basically means that your home is serving as collateral for the loan. It also gives the loan servicer the right to foreclose if you don’t make your monthly payments. The promissory note provides proof of the debt and your promise to pay it.

When a lender assigns your mortgage, your interests as the mortgagor are given to another mortgagee or servicer. Mortgages and deeds of trust are usually recorded in the county recorder’s office. This office also keeps a record of any transfers. When a mortgage is transferred so is the promissory note. The note will be endorsed or signed over to the loan’s new owner. In some situations, a note will be endorsed in blank, which turns it into a bearer instrument. This means whoever holds the note is the presumed owner.

Using MERS To Track Transfers

Banks have collectively established the Mortgage Electronic Registration System , Inc. (MERS), which keeps track of who owns which loans. With MERS, lenders are no longer required to do a separate assignment every time a loan is transferred. That’s because MERS keeps track of the transfers. It’s crucial for MERS to maintain a record of assignments and endorsements because these land records can tell who actually owns the debt and has a legal right to start the foreclosure process.

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Assignment of Mortgage Requirements and Effects

The assignment of mortgage needs to include the following:

The original information regarding the mortgage. Alternatively, it can include the county recorder office’s identification numbers. 

The borrower’s name.

The mortgage loan’s original amount.

The date of the mortgage and when it was recorded.

Usually, there will also need to be a legal description of the real property the mortgage secures, but this is determined by state law and differs by state.

Notice Requirements

The original lender doesn’t need to provide notice to or get permission from the homeowner prior to assigning the mortgage. But the new lender (sometimes called the assignee) has to send the homeowner some form of notice of the loan assignment. The document will typically provide a disclaimer about who the new lender is, the lender’s contact information, and information about how to make your mortgage payment. You should make sure you have this information so you can avoid foreclosure.

Mortgage Terms

When an assignment occurs your loan is transferred, but the initial terms of your mortgage will stay the same. This means you’ll have the same interest rate, overall loan amount, monthly payment, and payment due date. If there are changes or adjustments to the escrow account, the new lender must do them under the terms of the original escrow agreement. The new lender can make some changes if you request them and the lender approves. For example, you may request your new lender to provide more payment methods.

Taxes and Insurance

If you have an escrow account and your mortgage is transferred, you may be worried about making sure your property taxes and homeowners insurance get paid. Though you can always verify the information, the original loan servicer is responsible for giving your local tax authority the new loan servicer’s address for tax billing purposes. The original lender is required to do this after the assignment is recorded. The servicer will also reach out to your property insurance company for this reason.  

If you’ve received notice that your mortgage loan has been assigned, it’s a good idea to reach out to your loan servicer and verify this information. Verifying that all your mortgage information is correct, that you know who to contact if you have questions about your mortgage, and that you know how to make payments to the new servicer will help you avoid being scammed or making payments incorrectly.

Let's Summarize…

In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lender’s interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgage’s terms should remain the same. Your interest rate, loan amount, monthly payment, and payment schedule shouldn’t change. 

Your original lender isn’t required to notify you or get your permission prior to assigning your mortgage. But you should receive correspondence from the new lender after the assignment. It’s important to verify any change in assignment with your original loan servicer before you make your next mortgage payment, so you don’t fall victim to a scam.

Attorney Todd Carney

Attorney Todd Carney is a writer and graduate of Harvard Law School. While in law school, Todd worked in a clinic that helped pro-bono clients file for bankruptcy. Todd also studied several aspects of how the law impacts consumers. Todd has written over 40 articles for sites such... read more about Attorney Todd Carney

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AT&T says a data breach leaked millions of customers’ information online. Were you affected?

FILE - The sign in front of an AT&T retail store is seen in Miami, July 18, 2019. The theft of sensitive information belonging to millions of AT&T’s current and former customers has been recently discovered online, the telecommunications giant said Saturday, March 30, 2024. In an announcement addressing the data breach, AT&T said that a dataset found on the dark web contains information including some Social Security numbers and passcodes for about 7.6 million current account holders and 65.4 million former account holders. (AP Photo/Lynne Sladky, File)

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NEW YORK (AP) — The theft of sensitive information belonging to millions of AT&T’s current and former customers has been recently discovered online, the telecommunications giant said this weekend.

In a Saturday announcement addressing the data breach, AT&T said that a dataset found on the “dark web” contains information including some Social Security numbers and passcodes for about 7.6 million current account holders and 65.4 million former account holders.

Whether the data “originated from AT&T or one of its vendors” is still unknown, the Dallas-based company noted — adding that it had launched an investigation into the incident. AT&T has also begun notifying customers whose personal information was compromised.

Here’s what you need to know.

WHAT INFORMATION WAS COMPROMISED IN THIS BREACH?

Although varying by each customer and account, AT&T says that information involved in this breach included Social Security numbers and passcodes — which, unlike passwords, are numerical PINS that are typically four digits long.

Full names, email addresses, mailing address, phone numbers, dates of birth and AT&T account numbers may have also been compromised. The impacted data is from 2019 or earlier and does not appear to include financial information or call history, the company said.

HOW DO I KNOW IF I WAS AFFECTED?

Consumers impacted by this breach should be receiving an email or letter directly from AT&T about the incident. The email notices began going out on Saturday, an AT&T spokesperson confirmed to The Associated Press.

WHAT ACTION HAS AT&T TAKEN?

Beyond these notifications, AT&T said that it had already reset the passcodes of current users. The company added that it would pay for credit monitoring services where applicable.

AT&T also said that it “launched a robust investigation” with internal and external cybersecurity experts to investigate the situation further.

HAS AT&T SEEN DATA BREACHES LIKE THIS BEFORE?

AT&T has seen several data breaches that range in size and impact over the years .

While the company says the data in this latest breach surfaced on a hacking forum nearly two weeks ago, it closely resembles a similar breach that surfaced in 2021 but which AT&T never acknowledged, cybersecurity researcher Troy Hunt told the AP Saturday.

“If they assess this and they made the wrong call on it, and we’ve had a course of years pass without them being able to notify impacted customers,” then it’s likely the company will soon face class action lawsuits, said Hunt, founder of an Australia-based website that warns people when their personal information has been exposed.

A spokesperson for AT&T declined to comment further when asked about these similarities Sunday.

HOW CAN I PROTECT MYSELF GOING FORWARD?

Avoiding data breaches entirely can be tricky in our ever-digitized world, but consumers can take some steps to help protect themselves going forward.

The basics include creating hard-to-guess passwords and using multifactor authentication when possible. If you receive a notice about a breach, it’s good idea to change your password and monitor account activity for any suspicious transactions. You’ll also want to visit a company’s official website for reliable contact information — as scammers sometimes try to take advantage of news like data breaches to gain your trust through look-alike phishing emails or phone calls.

In addition, the Federal Trade Commission notes that nationwide credit bureaus — such as Equifax, Experian and TransUnion — offer free credit freezes and fraud alerts that consumers can set up to help protect themselves from identity theft and other malicious activity.

AP Reporter Matt O’Brien contributed to this report from Providence, Rhode Island.

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Why the federal government is paying upfront to fix the Baltimore bridge

The federal government stepping in to pay to rebuild the bridge doesn’t necessarily mean taxpayers will cover the entire bill.

After President Joe Biden said the federal government would pay to replace Baltimore’s Francis Scott Key Bridge, a project estimated to cost from  $400 million  to  over $1 billion , some social media users questioned why the company that owned the ship isn’t footing the bill.

Biden, in  March 26 remarks  after the accident, said the federal government “will pay for the entire cost of reconstructing that bridge,” and he expected congressional support for that effort.

On social media, users expressed outrage.

“That ship was commissioned by a Danish company. It was operating under a Singapore flag … President Biden thinks the American taxpayers should foot the bill to clean up the mess and rebuild the bridge. I think there’s a foreign company that owes us a bridge!” read  three   Facebook   posts  that shared the same graphic.

“Why are WE responsible for paying for this!! Make it make sense!!” another  Facebook post  said.

Former House Speaker Newt Gingrich, R-Ga., criticized Biden, writing  in an X post , “Why add a billion dollars to US debt when the big insurance companies exist for precisely this purpose?”

The ship that struck the bridge was owned by Singapore-based company Grace Ocean Private Ltd. It was managed by Singapore-based ship management company Synergy Marine Group, and chartered by Danish shipping company Maersk.

Grace Ocean Private Ltd. and Synergy Marine Group filed a court petition April 1  seeking to cap their liability  at about $43.6 million.

The federal Department of Transportation on March 28  announced $60 million  in “quick release” Emergency Relief funds for the Maryland Department of Transportation Department to begin rebuilding the bridge, describing it as an “initial down payment of funds.”

Getting the bridge repaired and the Port of Baltimore open to ship traffic is an economic imperative for Maryland and for the U.S.,  Maryland  and federal  officials  said.

The bridge carried more than 30,000 vehicles a day, state officials said. The Port of Baltimore in 2021 was the 17th largest in the U.S. in terms of annual total tonnage of cargo, U.S. Department of Transportation  data shows.

Maryland’s Democratic governor, Wes Moore,  said  March 31 on “Fox News Sunday” that the bridge collapse isn’t affecting Maryland’s economy alone, but also states across the country.

The support Baltimore has received “isn’t because anyone is trying to do Maryland a favor,” Moore said. “It’s because the national economy relies on the Port of Baltimore being up and running,”

Where will the money come from and will feds foot the entire bill?

The federal government stepping in to pay to rebuild the bridge doesn’t necessarily mean taxpayers will cover the entire bill.

When reporters asked Biden March 26 whether the company that owned the ship should be held responsible, Biden  said , “That could be, but we’re not going to wait if that happened. We’re going to pay for it to get the bridge rebuilt and open.”

Transportation Secretary Pete Buttigieg said at a  March 27 news briefing  that “any private party that is found responsible and liable will be held accountable” for the bridge accident.

Analysts  say  insured losses including for bridge repair and business interruption could amount to up to $4 billion. But lawsuits in similar disasters have taken years to settle.

Peter Knudson, a National Transportation Safety Board spokesperson, said its investigation is expected to last one to two years.

Sen. Chris Van Hollen, D-Md.,  said  on ABC’s “This Week with George Stephanopoulos” that “The federal government will pay 90% of the costs,” and he plans to introduce legislation to cover the other 10%.

Treasury Secretary Janet Yellen in a  March 27 MSNBC interview,  said money from the 2021 Bipartisan Infrastructure Law could help pay some of the costs, but said she expected insurance to cover those costs partly.

Buttigieg  said  March 31 on CBS’ “Face the Nation” that more than the initial $60 million in emergency released funding will come, but “it is possible we may need to turn to Congress to supplement that fund. That has happened in the past.”

Although some Republicans in Congress have  expressed opposition  to paying for the repairs, Senate Minority Leader Mitch McConnell, R-Ky.,  said  in an April 1 radio interview that the federal government will pay “the lion’s share” of the cost to replace the bridge.

Buttigieg pointed to bipartisan support for a $250 million reconstruction package following 2007 collapse of the Interstate N35 in Minnesota.

The bridge’s  August 2007  collapse near downtown Minneapolis took down 111 vehicles, killing 13 people and injuring 145. The NTSB concluded that the probable cause was “inadequate load capacity, due to a design error” of some of the bridge’s structures.

With the state  estimated to lose  about $60 million in economic output in 2007 and 2008 because of the bridge’s absence, Congress three days after the bridge’s collapse authorized the reconstruction funding. Two days after that, former President George W. Bush signed it into law. The bridge was completed in 13 months.

URS Corp., the engineering company tasked to evaluate the bridge before it collapsed, agreed to pay $52.4 million to the tragedy’s victims.

Federal government has paid up front for similar disasters

Steve Ellis, president of the Taxpayers for Common Sense, an independent group that analyzes federal spending, said the federal government often intervenes after disasters to pay for the immediate response.

“In this case, where there are other insured actors, like the shipping line, the federal government should go after them for reimbursement and penalties,” Ellis said.

Andy Winkler, director of the Bipartisan Policy Center’s infrastructure project, said the Biden administration’s quick offer of assistance in the Baltimore bridge collapse does not preclude the federal government from recouping costs should a private sector party be found responsible.”

Here are some examples of the federal government paying up front and seeking reimbursement later:

Deepwater Horizon and Exxon Valdez oil spills:  Ellis and Winkler each pointed to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, and Ellis also noted the 1989 Exxon Valdez oil spill in Alaska as examples of the federal government contributing to upfront costs and recovering moneymore through settlements with the companies responsible. Those settlements took six years to reach in the Deepwater spill and two in the Exxon spill.

The Deepwater spill, triggered by an oil rig explosion that killed 11 people, was the largest U.S. marine oil spill ever,  releasing about 130 million gallons of oil  into the sea and soiling five states coastlines. The federal government reached a $20.8 billion settlement with BP, the largest environmental settlement in U.S. history, that was  approved  in 2016 by a federal judge.

“The federal government provided assistance, including funding to support cleanup efforts, all while aggressively pursuing compensation for all damage,” Winkler said.

Before Deepwater Horizon, the  1989 Exxon Valdez  oil spill had been the worst in U.S. history. An Exxon oil tanker struck a reef in Prince William Sound, Alaska, spilling 11 million gallons of crude oil into the water. Exxon agreed to pay $1 billion in fines and damages, the  Enviromental Protection Agency said in 1991 . Overall,  Exxon said  it has paid $4.3 billion after the accident in compensatory and cleanup payments, settlements and fines.

East Palestine train derailment:  In 2023, after a train derailed in East Palestine, Ohio, the state led the initial emergency operation with federal and local support.

Days later, the EPA  ordered  its operator, Norfolk Southern, to reimburse the agency for cleanup.

Norfolk Southern claimed that companies responsible for the destroyed tank cars and spilled chemicals should share cleanup costs, which it said amounted to more than $1.1 billion. But in  March , a federal judge ruled that solely Norfolk Southern should fund the cleanup.

The  $1.1 billion figure  reflects any costs charged to Norfolk because of the derailment, as well as the more than $104 million paid directly to residents and the East Palestine community, Norfolk spokesperson Connor Spielmaker told PolitiFact.

The EPA told PolitiFact in an April 1 email it will send Norfolk Southern a bill for all of its personnel, time and resources spent.

Washington highway bridge collapse:  In Washington state in May 2013, the Interstate 5 Skagit River Bridge in Mount Vernon, about halfway between Seattle and the Canadian border, collapsed after a wide-load-bearing 18-wheeler crashed into the bridge. A month later, the U.S. Department of Transportation’s Federal Highway Administration released $15.6 million from emergency funds to pay for the repairs, but required the state to seek reimbursement,  The Seattle Times reported .

In 2019, the Washington Supreme Court ruled that Mullen Trucking and Motorways Trucking, the  two companies responsible for the crash, were responsible for paying $17 million to pay the repair costs instead of taxpayers,  The Seattle Times said .

PolitiFact Senior Correspondent Amy Sherman and Researcher Caryn Baird contributed to this story.

This fact check was originally published by PolitiFact , which is part of the Poynter Institute. See the sources for this fact check here .

Opinion | Women’s basketball takes the spotlight with sensational performances … on and off the court

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Gannett journalists in the solar eclipse’s path go on strike

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Is CERN activating the world’s most powerful particle accelerator for the April 8 eclipse? No

CERN restarted its Large Hadron Collider after a regular winter stop for maintenance. It is unrelated to the eclipse. 

Associated Press Stylebook makes Merriam-Webster its official dictionary

If a term isn’t listed in the stylebook, its entry in Merriam-Webster will be considered AP style.

Opinion | What’s going on with the NFL Network?

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• Estimated tax payments |  ASL

IR-2024-95, April 5, 2024

WASHINGTON —The Internal Revenue Service today advised taxpayers, including self-employed individuals, retirees, investors, businesses and corporations about the April 15 deadline for first quarter estimated tax payments for tax year 2024.

Since income taxes are a pay-as-you go process, the law requires individuals who do not have taxes withheld to pay taxes as income is received or earned throughout the year. Most people meet their tax obligations by having their taxes deducted from their paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation.

Generally, taxpayers who are self-employed or in the gig economy are required to make estimated tax payments . Likewise, retirees, investors and others frequently need to make these payments because a significant portion of their income is not subject to withholding.

When estimating quarterly tax payments, taxpayers should include all forms of earned income, including part-time work, side jobs or the sale of goods or services commonly reported on Form 1099-K .

Income such as interest, dividends, capital gains, alimony and rental income is normally not subject to withholding. By making quarterly estimated tax payments, taxpayers can avoid penalties and uphold their tax responsibilities.

Certain groups of taxpayers, including farmers and fishers, recent retirees, individuals with disabilities, those receiving irregular income and victims of disasters are eligible for exceptions to penalties and special regulations .

Following recent disasters, eligible taxpayers in Tennessee , Connecticut , West Virginia , Michigan , California and Washington have an extended deadline for 2024 estimated tax payments until June 17, 2024. Similarly, eligible taxpayers in Alaska , Maine and Rhode Island have until July 15, 2024, and eligible taxpayers in Hawaii have until Aug. 7, 2024. For more information, visit Tax relief in disaster situations .

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The IRS has also posted translated tax resources in 20 other languages on IRS.gov to communicate to taxpayers who prefer to get information in other languages. For more information, see the IRS Languages page on IRS.gov.

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⦁     Topic no. 653, IRS notices and bills, penalties, and interest charges

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WrestleMania 40 Livestream: How to Watch Night Two of the WWE Event Online

Roman Reigns faces Cody Rhodes in an undisputed WWE Universal Championship title main event.

By Rudie Obias

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The WWE’s biggest event of the year is here with WrestleMania 2024 . This year’s event features 13 matchups, including seven title bouts, spread over two nights on Saturday, April 6 and Sunday, April 7.

While all the WWE superstars are expected to participate in WrestleMania , night one featured Dwayne “The Rock” Johnson’s return to the squared-circle in a tag team match, as he and Roman Reigns defeated Cody Rhodes and Seth Rollins.

Night two of WrestleMania 40 features Roman Reigns vs. Rhodes in an undisputed WWE Universal Championship title main event. There will also be a World Heavyweight Championship match between Seth Rollins and Drew McIntyre.

When Is WrestleMania 2024? Date, Time

WrestleMania night 2 takes place at Lincoln Financial Field in Philadelphia, Pennsylvania on April 7. The start time for WrestleMania 40 is 7 p.m. ET/4 p.m. PT.

Last-minute WrestleMania tickets are still available on sites like Vivid Seats and SeatGeek . Use promo code VAR2024 to save $20 off your purchase at VividSeats.com and use discount code VARIETY10 to save $10 at SeatGeek.com .

How to Watch WrestleMania Online

Want to watch WrestleMania 40 online? This is a livestream event that’s exclusively airing on Peacock , so the only way to watch it is to purchase a subscription starting at $5.99/month here .

Not a subscriber? You can get a Peacock monthly subscription to stream WrestleMania online, and keep it to watch other hits — including “Lisa Frankenstein,” “Night Swim,” Nope,” “The Traitors,” “ Vanderpump Rules ” and others.

While some WWE events in the past have been pay-per-view, WrestleMania 40 is not a PPV event, so there is no PPV price needed. You can watch WrestleMania online simply with a Peacock subscription.

How to Watch WrestleMania Online Free

Unlike some streamers, Peacock does not currently offer a free trial. Peacock also stopped offering a free tier in 2023. The only way to watch WrestleMania XL online is through a Peacock subscription .

(Note: where there are free WrestleMania streaming links on Reddit and other sites online, the only legal WrestleMania 40 livestream is through Peacock).

How to Watch WrestleMania 40 on TV

The 2024 WrestleMania event is a Peacock event and is streaming exclusively online so it is not airing on cable TV. If you want to watch WrestleMania on TV, you can watch it on your smart TV through the Peacock app .

WrestleMania 40: Night Two Main Card, Fights, Wrestlers

Check out the WrestleMania XL night two card below, and stream it on Peacock here .

WrestleMania 40 Main Card — Night Two,  7 p.m. ET/4 p.m. PT

• Roman Reigns (champion) vs. Cody Rhodes — Undisputed WWE Universal Championship
• Seth Rollins (champion) vs. Drew McIntyre — World Heavyweight Championship
• Iyo Sky (champion) vs. Bayley — WWE Women’s Championship
• Logan Paul (champion) vs. Randy Orton vs. Kevin Owens — WWE United States Championship
• LA Knight vs. AJ Styles
• Bobby Lashley and The Street Profits (Montez Ford and Angelo Dawkins) vs. The Final Testament (Karrion Kross, Akam and Rezar) — Philadelphia Street Fight

Musical stars are also set for Wrestlemania, with R&B star Coco Jones tapped to sing the national anthem while Lil Wayne and Meek Mill hit the stage to perform .

Watch all the action by livestreaming WrestleMania 40 online with Peacock. Purchase the livestream feed starting at $5.99/month , or $49.99/year when you sign up for an annual subscription here .

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Your guide to California’s new $20-an-hour minimum wage for fast food workers

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California’s mandatory minimum wage for fast-food workers took effect Monday, with $20 an hour now in place.

Here is what we know from the pages of The Times:

The pay increase established b y Assembly Bill 1228 applies t o California fast food workers employed by any chain with more than 60 locations nationwide and covers corporate-owned and franchised locations. The state has more than 540,000 fast food workers, about 195,000 of them in Los Angeles and Orange counties, according to the latest May 2022 figures from the U.S. Bureau of Labor Statistics.

Starbucks, Chipotle, McDonald’s: Who’s raising prices as California fast-food law starts today

Fast-food chains are looking to hike the cost of menu items because they’re required to pay their employees $20 an hour starting Monday.

April 1, 2024

The previous minimum wage in California, regardless of industry, was $16 an hour — meaning many cashiers, line and prep cooks, counter attendants and baristas will see as much as a 25% raise overnight. Here is an overview.

With fewer options, South L.A. braces for bigger bills at fast-food restaurants

Fast-food chains plan to raise prices in response to the state’s $20 minimum wage for their workers, potentially affecting a swath of L.A. that relies on the eateries.

March 29, 2024

Rising prices?

Some fast food operators said they plan to raise prices — or are considering doing so. While Chipotle has not yet announced a final decision on new pricing, many other chains like McDonald’s, Starbucks and Jack in the Box say they are planning to push the wage increase onto consumers or change their operations. Here is a look at what other changes chains have in mind.

New council

Along with the higher minimum wage, the new law established a Fast Food Council — composed of business and labor representatives — that has the authority to set future pay increases (at a maximum of 3.5% a year) and develop standards on working conditions and employee safety and training.

Higher prices on the menu as fast-food chains brace for California’s big minimum wage jump

With the state’s mandatory minimum wage for fast-food workers set to increase to $20 an hour, many restaurant chains are preparing to raise prices.

March 27, 2024

More reading

‘I feel duped’: Inside the fast-food industry’s push to dismantle a new California labor law

California fast-food workers form an unusual union in a bid for higher wages, better working conditions

Labor, business reach deal to raise fast-food wages and end California ballot fight

Minimum-wage workers in these California cities are getting a raise in 2024

Higher wages are coming for California’s fast-food workers. Here’s what to know about the new law

More to Read

Letters to the Editor: California shouldn’t bestow higher minimum wages on select workers

April 8, 2024

Letters to the Editor: Upset over California’s $20 wage? Wait until you see what fast-food CEOs make

April 4, 2024

Fast-food wage hike puts Democrats on defense as Californians worry about cost of living

April 3, 2024

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Stock market today: US stocks surge after strong March jobs report and muted wage inflation

• US stocks surged on Friday following a stronger than expected March jobs report.
• The US economy added 303,000 jobs last month, well ahead of economist estimates of 212,000 jobs.
• The jobs report showed muted wage inflation, which could suggest a mild CPI report next week.

US stocks surged on Friday, recouping most of Thursday's losses after the March jobs report bested analyst estimates.

The US economy added 303,000 jobs in March, well ahead of economist estimates of 212,000. Investors are electing to put a positive spin on the strong economic data under the idea that expansion will drive earnings growth. That optimism appeared to outweigh concerns that a Fed rate cut will be delayed.

The report also saw the unemployment rate fall to 3.8% from 3.9%, and it also showed easing wage inflation during the month. That's important because wage inflation plays a key part in overall inflation, suggesting that next week's CPI report might not surprise to the upside. 

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"Another blowout payroll report suggests the economy is running strong and far from recession, with the economy averaging 276,000 job growth per month over the last quarter," Carson Group strategist Sonu Varghese told Business Insider. "On balance, this would push out any rate cuts by the Fed, but easing wage growth means we're not in the middle of a labor-market induced inflation surge."

Here's where US indexes stood at the 4:00 p.m. closing bell on Friday: 

• S&P 500 : 5,204.34, up 1.1%
• Dow Jones Industrial Average : 38,904.04, up 0.8% (307 points)
• Nasdaq Composite : 16,248.52, up 1.2%

Here's what else happened today: 

• A string of layoffs in Apple's R&D division suggests that CEO Tim Cook is trying to re-focus the company after its failed EV project.
• A peak in bitcoin would signal turbulent times ahead for the stock market over the next six months, according to a Wall Street strategist.
• The US government transferred 2,000 bitcoin to Coinbase from its $2 billion cryptocurrency wallet earlier this week.
• Tesla stock fell as much as 6% after a Reuters report said the company is scrapping its low-cost Model 2 vehicle, though Elon Musk denied the report. 
• A fund that offers investors the chance to buy stock in pre-IPO companies has soared as much as 818% since its debut two weeks ago. 

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil edged higher by 0.20% to $86.76 a barrel. Brent crude , the international benchmark, jumped by 0.39% to $91.00 a barrel. 
• Gold jumped 1.50% to $2,343.20 per ounce. 
• The 10-year Treasury yield rose 7 basis points to 4.39%. 
• Bitcoin dropped by 0.99% to $67,844. 

Watch: How tech layoffs could affect the economy

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