Wage Levy

Wage Levy is also known as wage garnishment; it involves the process of deducting money from an employee’s assets such as his or her wage. The garnishment is imposed on a third party that has power over the taxpayer’s wage. A certain percentage from the employee’s wage will then be used to pay off his or her tax delinquencies.

A salary levy is issued when a taxpayer refuses to take care of tax delinquencies and a court order gets issued as a consequence. However, this is the IRS’ last resort; it happens when the agency has exhausted all means to convince the taxpayer to pay. As has been mentioned, there is a ceiling on how much the IRS can seize — in the United States, garnishments are mostly limited by federal law to 25% of an employee’s disposable income.

A salary levy is taken as a part of the payroll process and affects future paychecks. (Salary and wages include bonuses, fees, and commissions.) The levy of wages will continue until arrangements have been made to pay off the debts or until the entire debt is paid. Compared to other levies, they are only attached on properties and rights to property that exist when the levy is served. For example, if a levy is placed on a bank account, it only reaches the money in the account when the levy is served. It does not affect the money that is deposited later.

The IRS can withhold wages more than $3.83 per hour for a single employee with no dependents. This is below the minimum wage and the taxpayer is obligated for income tax on the full amount withheld and paid.

Having a wage levy could affect your reputation, credit rating and the ability to open a bank account and receive a loan. So stop your Wage Levy with Premier Tax Resolutions and SETTLE your tax debt now. Just fill out a form and a Tax Resolution Consultant will get back to you for free, no obligation consultation. Call us now at our toll free number 1.800.554.0146 and start settling your debt today.