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.
This webinar will give you the tools to better understand the responsibilities that a company has in regards to all types of garnishment orders. Federal guidelines such as Consumer Credit Protection Act, federal IRS levy requirements, state specific levy & garnishment withholding requirements. The federal and state regulations in regards to applicable earnings will be reviewed. Recent legislation challenges will be discussed and best practices on how to keep up with changing legislation will be discussed.
By attending this audio conference you will learn:
• 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
• Garnishment processing best practices
• COVID-19 and how it has affected garnishment processing
• 2020 Student loan garnishment processing changes
Consumer Credit Protection Act - CCPA: The Consumer Credit Protection Act (CCPA) is a piece of federal legislation that puts in place consumer protections against lenders. Passed in 1968, the law requires lenders to explain the actual cost of borrowing money in terms the consumer understands.
Disposable Pay: “Disposable pay” is the pay remaining after deduction of any amounts required by law to be withheld. The maximum for student loan and all other garnishments is 25% of disposable income.
Electronic Income Withholding Orders (E-IWO): Electronic Income Withholding Orders or E-IWO is an efficient and cost-effective way to electronically exchange income withholding order (IWO) information between state child support agencies and employers.
Form 2159: Used for a voluntary payroll deduction agreement for taxes owed. There are three parts to Form 2159: the Acknowledgement Copy (to be returned to the IRS), the Employer’s Copy, and the Taxpayer’s Copy.
Form 668-D: When all the tax shown on the levy is paid in full, the IRS will issue a Form 668-D, Release of Levy/Release of Property from Levy.
Form 668-W: The IRS uses Form 668-W(c) to notify your employer and you of a levy against your wages. If you have unfiled returns, the IRS will not release the levy. Your employer is required to turn over non-exempt wages and you should inform them of any dependents you have.
Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt
Levy: A tax levy, under United States Federal law, is an administrative action by the Internal Revenue Service under statutory authority, generally without going to court, to seize property to satisfy a tax liability. The levy "includes the power of distraint and seizure by any means".
Publication 1494: The IRS mails Publication 1494 (PDF) with the levy which explains to your employer how to determine the amount exempt from levy.
SFPT (Secure File Transfer Program): SFTP is a command-line interface client program to transfer files using the SSH File Transfer Protocol, which runs inside the encrypted Secure Shell connection. It provides an interactive interface similar to that of traditional command-line FTP clients.
Dayna is currently the Payroll Tax Manager at PetSmart Inc. Dayna has been heavily involved in the payroll field over 15 years. Starting as a payroll clerk at a small Tucson company, Dayna moved on to be a Payroll Team Leader at Honeywell Inc. During Dayna’s time at Honeywell she obtained her FPC (Fundamental Payroll Certification) through the American Payroll Association. She also received several merit awards for Customer Service and Acquisitions and Divestitures. Dayna is no stranger to teach... View Full Profile
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