A paying agency is defined as the federal agency that employs an individual who owes a debt to another federal agency. This term is relevant in situations where the Office of Personnel Management (OPM) may act as both the creditor agency and the paying agency. Essentially, the paying agency is responsible for withholding payments to recover debts owed by employees to the government.
The term "paying agency" is primarily used in the context of federal employment and debt recovery. It plays a significant role in administrative procedures related to the collection of debts owed by federal employees. This can involve various legal areas, including administrative law and employment law. Users may encounter forms and procedures related to debt recovery, which can often be managed with the assistance of legal templates available through platforms like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: An employee of the Department of Defense owes a debt to the Department of Education. The Department of Defense acts as the paying agency and withholds a portion of the employee's salary to repay the debt.
Example 2: A federal employee receives notice from the OPM that their salary will be reduced to settle a debt owed to another federal agency. (hypothetical example)
| Term | Definition | Difference |
|---|---|---|
| Creditor Agency | The agency to which a debt is owed. | The paying agency is responsible for collecting the debt, while the creditor agency is the one that holds the debt. |
| Debt Recovery | The process of collecting money owed. | Paying agency specifically refers to the federal agency involved in withholding payments to recover debts. |
If you find yourself in a situation where your salary may be withheld due to a debt owed to a federal agency, it is important to understand your rights. You should:
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