Home | Finance
Wage garnishment laws have been passed by states as well as the federal government. The purpose of these laws is to provide a way for debts owed to creditors to be recovered. IRS wage garnishment is the most common application of these laws. Garnishments against wages can be levied by any agency and is not limited to the IRS. Private creditors, federal government departments, or even an ex-spouses can claim garnishment of the money overdue. Garnishments can also be in cases of overdue child support expenses. For most agencies apart from the IRS, a court order is required to enforce the garnishment law. Garnishment is taken as a part of the payroll process. An order of importance been stipulated by law. According the garnishment law, the garnishment due to towards the federal government is to be collected first. Thereafter the money due towards state tax or local tax jurisdictions will be collected, and lastly garnishment for credit cards and other private debts will be paid. Garnishment law in some states like Pennsylvania, North Carolina, Texas, etc do not allow wage garnishment at all except those related to taxes, child support, court order fines, and federally-guaranteed student loans. Other states allow all kinds of garnishments, even those levied by the private creditors. In some states garnishment law states that a maximum 25% of the disposable earnings can be levied as an amount due towards payment. The money withheld by an employer from any individual's paycheck is handed over to the creditor or the agency towards which the amounts is due. As per the garnishment law, the wage garnishment remains in effect during each pay period until the total amount due is paid in full. That is not necessarily true in the instance of an IRS wage garnishment. An offer in compromise can be negotiated, or a payment plan can be agreed upon. Most tax professionals can get the IRS to agree to a provisional release of the levy against wages based upon a negotiated agreement. According the wage garnishment law, an individual's salary, wages, or other income can be levied. Garnishment law prevents the employee from being fired from his or her job. If the employer fires the employee because of garnishment proceedings, then it is violation of garnishment law. The employer can be fined for doing so. The Wage and Hour division of the Department of Labor determines the violation of the law. The IRS does not do this job.
Information and Articles: http://www.mastersmba.com
Providing Information on various topics, please browse our other Articles for more informative resources, we house information on every topic imaginable so regardless of your needs you can be assured to find the answer here. If you wish to reprint this on your own website, simply click the "Web Version" in the right menu, and you are presented with a pre-formatted document to use.
A lot of the information is written by the Master Article team, and published exclusively on the MastersMBA.com website, and we do our best to research all information to ensure it's as accurate as possible. However at times we also publish documents given to us by other sources, we do examine these documents to ensure they are as accurate and correct as possible however at times they discuss highly specialized fields making it hard to authenticate the validity of every fact in the document. These are written by specialists in their respective fields, and we do trust their integrity and judgment however it's always a good idea when doing any research to consult a number of sources and form your own conclusion based on a number of view points.
Some of this weeks most popular categories are: Finance - Health - Business - Credit Loans and Acne
