Garnishment payable

A garnishment payable is the amount that a business owes to the applicable court or other agency that has required funds to be withheld from an employee's paycheck. Garnishments may be associated with unpaid taxes, unpaid loans, child support, spousal support, and similar matters. These amounts should be recorded within a separate garnishment payable liability account, so that the accounting staff can more closely track the status of these payments.

Related Courses

The Balance Sheet