# 31 C.F.R. § 5.12 (2026): How will Treasury entities offset a Federal employee's salary to collect a Treasury debt? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_12 ## Section - **Citation:** 31 C.F.R. § 5.12 (2026) - **Heading:** How will Treasury entities offset a Federal employee's salary to collect a Treasury debt? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 31 CFR: Money and Finance: Treasury / Part 5 / Subpart B / § 5.12: § 5.12 How will Treasury entities offset a Federal employee's salary to collect a Treasury debt? ## Text (a) Federal salary offset. (1) Salary offset is used to collect debts owed to the United States by Treasury Department and other Federal employees. If a Federal employee owes a Treasury debt, Treasury entities may offset the employee's Federal salary to collect the debt in the manner described in this section. For information on how a Federal agency other than a Treasury entity may collect debt from the salary of a Treasury Department employee, see §§ 5.20 and 5.21, subpart C, of this part. (2) Nothing in this part requires a Treasury entity to collect a Treasury debt in accordance with the provisions of this section if Federal law allows otherwise. See, for example, 5 U.S.C. 5705 (travel advances not used for allowable travel expenses are recoverable from the employee or his estate by setoff against accrued pay and other means) and 5 U.S.C. 4108 (recovery of training expenses). (3) Treasury entities may use the administrative wage garnishment procedure described in § 5.13 of this part to collect a debt from an individual's non-Federal wages. (b) Centralized salary offset through the Treasury Offset Program. As described in § 5.9(a) of this part, Treasury entities will refer Treasury debts to the Financial Management Service for collection by administrative offset, including salary offset, through the Treasury Offset Program. When possible, Treasury entities should attempt salary offset through the Treasury Offset Program before applying the procedures in paragraph (c) of this section. See 5 CFR 550.1109. (c) Non-centralized salary offset for Treasury debts. When centralized salary offset through the Treasury Offset Program is not available or appropriate, Treasury entities may collect delinquent Treasury debts through non-centralized salary offset. See 5 CFR 550.1109. In these cases, Treasury entities may offset a payment internally or make a request directly to a Federal payment agency to offset a salary payment to collect a delinquent debt owed by a Federal employee ## Nearby sections - [31 C.F.R. § 5.4 (2026) § 5.4 What notice will Treasury entities send to a debtor when collecting a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_4.md) - [31 C.F.R. § 5.5 (2026) § 5.5 How will Treasury entities add interest, penalty charges, and administrative costs to a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_5.md) - [31 C.F.R. § 5.6 (2026) § 5.6 When will Treasury entities allow a debtor to pay a Treasury debt in installments instead of one lump sum?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_6.md) - [31 C.F.R. § 5.7 (2026) § 5.7 When will Treasury entities compromise a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_7.md) - [31 C.F.R. § 5.8 (2026) § 5.8 When will Treasury entities suspend or terminate debt collection on a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_8.md) - [31 C.F.R. § 5.9 (2026) § 5.9 When will Treasury entities transfer a Treasury debt to the Treasury Department's Financial Management Service for collection?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_9.md) - [31 C.F.R. § 5.10 (2026) § 5.10 How will Treasury entities use administrative offset (offset of non-tax Federal payments) to collect a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_10.md) - [31 C.F.R. § 5.11 (2026) § 5.11 How will Treasury entities use tax refund offset to collect a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_11.md) - [31 C.F.R. § 5.12 (2026) § 5.12 How will Treasury entities offset a Federal employee's salary to collect a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_12.md) - [31 C.F.R. § 5.13 (2026) § 5.13 How will Treasury entities use administrative wage garnishment to collect a Treasury debt from a debtor's wages?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_13.md) - [31 C.F.R. § 5.14 (2026) § 5.14 How will Treasury entities report Treasury debts to credit bureaus?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_14.md) - [31 C.F.R. § 5.15 (2026) § 5.15 How will Treasury entities refer Treasury debts to private collection agencies?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_15.md) - [31 C.F.R. § 5.16 (2026) § 5.16 When will Treasury entities refer Treasury debts to the Department of Justice?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_16.md) - [31 C.F.R. § 5.17 (2026) § 5.17 Will a debtor who owes a Treasury debt be ineligible for Federal loan assistance or Federal licenses, permits or privileges?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_17.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_12. 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