Webinar Details $219
- Webinar Length: 60 Minutes
- Guest Speaker: Dayna Reum
- Topic:   Human Resources, Taxation and Accounting
- Credit:   HRCI 1.0, SHRM 1.0, RCH 1.0, CPE 1.0
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
- Agenda - Child Support Review 00:01:28
- Agenda - Levy Review 00:03:33
- Child Support Withholding Requirements 00:07:06
- Calculating Disposable Pay 00:08:52
- Calculating Child Support Payments 00:11:31
- State Lump Sum Requirements 00:15:34
- State Lump Sum Requirements - State Chart 00:17:28
- State Lump Sum Requirements - State Chart (cont’d) 00:18:26
- Priority of Withholding/Multiple Orders 00:18:31
- When to Remit Payments 00:21:22
- Administrative Fees 00:24:53
- Handling Terminated Employees 00:28:27
- E-IWO 00:30:54
- E-IWO- Implementation Options 00:31:58
- E-IWO Website 00:32:57
- Federal Tax Levies 00:33:34
- Federal Tax Levies - Employer Responsibility 00:34:42
- Federal Tax Levies - Form 668-W 00:36:44
- Federal Tax Levies - Form 668-W (cont’d) 00:38:35
- Federal Tax Levies - Priorities and Exempt Payments 00:40:12
- Federal Tax Levies - Calculating the Deductions 00:41:10
- Publication 1494 00:42:47
- Federal Tax Levies - How to Deal With? 00:44:09
- Federal Tax Levies - Form 668-D 00:45:01
- Federal Tax Levies - Form 2159 00:45:24
- New Form 2159 00:46:23
- Other Federal Garnishments 00:47:56
- DOE and Student Loan Wage Garnishments During COVID-19 00:48:34
- State Tax Levies 00:51:01
- State Levy Overview 00:51:53
- State Levy Overview (cont’d) 00:52:00
- State Levy Overview (cont’d) 00:52:16
- Creditor Garnishments 00:52:23
- Creditor Garnishments State Overview 00:53:27
- Questions? 00:55:02
- Presentation Closing 01:01:58
- C.A.R.E.S Act 00:48:40
- Consumer Credit Protection Act (CCPA) 00:11:47, 00:52:26
- Disposable Pay 00:02:16, 00:08:55, 00:47:08
- Electronic Income Withholding Orders (E-IWO) 00:03:14, 00:30:57
- Form 2159 00:03:37, 00:33:59
- Form 668-D 00:45:02
- Form 668-W 0033:58, 00:36:49
- Garnishment 00:04:46, 00:27:43, 00:31:31, 00:48:00
- Levy 00:03:34, 00:51:06
- Publication 1494 00:41:17
- SFPT (Secure File Transfer Program) 00:31:52
- State Disbursement Unit 00:21:31
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".
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.
Publication 1494: The IRS mails Publication 1494 (PDF) with the levy which explains to your employer how to determine the amount exempt 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.
C.A.R.E.S Act: The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a law intended to address the economic fallout of the COVID-19 pandemic in the United States.
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.
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.
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.
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.
State Disbursement Unit: In the United States, a State Disbursement Unit is a state government agency that collects and disburses child support payments from one parent to the other. States are required to establish as State Disbursement Unit by federal law, specifically Title 45 of the Code of Federal Regulations.