2020 Tax Levies and Creditor Garnishments: What Payroll Must Know to Stay in Compliance

Beside payroll tax, garnishments in general can be the most compliance rich area for companies to maintain. Understanding all the laws in regards to garnishments such as child support orders, Federal and state levies, student loan and credit garnishments can be overwhelming. It is important for companies to understand these laws and how to apply them to avoid costly penalties. If garnishments are not handled correctly, you may find yourself facing situations that become extremely costly both financially and emotionally.

This webinar will concentrate on processing garnishment in the payroll department other than child support. It covers the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments such as payday loans and student loans. It includes best practices for reconciling and processing the garnishments in the payroll department. Sample memos for communicating with the employee concerning garnishments are included. Step by step math calculations are reviewed for tax levies and creditor garnishments. The IRS Form 668-W is reviewed.

• How to define the various types of tax levies and creditor garnishments
  
• The federal requirements a payroll department must know on each type of garnishment
• How to determine how much to withhold for child support
• Determining the priority of garnishment orders
• Recent legislation challenges such as lump sum reporting for child support orders
• Discussion of legally allowed Child Support fees and how to administer
• Review of EIWO and the benefits
• How to properly calculate applicable earnings ex: Disposable earnings, Take home pay
• Determining the process for terminated employees with garnishment orders
• How to determine the withholding under a federal tax levy
• Garnishment processing best practices