When an employer in California receives a garnishment order they have to withhol
ID: 2569799 • Letter: W
Question
When an employer in California receives a garnishment order they have to withhold money on the first pay period that ends on or after 10 days from the date of the order. True or False? The California an employer will receive a different form for a civil court, child support and tax liability wage garnishment True or False? In a civil court judgement In California, if an employee's disposable earnings for a week are $520.00, the minimum wage is $11 per hour and there is no other order of higher priority, the amount of a garnishment is $40.00 True or False? If an employee is fired in California, the employer has two weeks to process and give the final check to the employee. True or False? For a federal tax levy from the IRS the employer sends to the IRS the amount left after deducting the standard deduction and personal exemptions from take home pay. True or False?
Explanation / Answer
True
To figure out when to start withholding earnings (garnishing wages), count 10 calendar days from the date you received the order. If the employee’s pay period ends before the 10th day, do not withhold any earnings for that pay period. Start withholding from the first pay period that ends on or after that 10th day after you receive the earnings withholding order.
Keep withholding for all pay periods until you have withheld the amount due as stated in the order, plus any additional amount for costs and interest. The sheriff will let you know the additional amount the employee owes for costs and interest. Do not withhold more than the total of these amounts.
Wage garnishment is a way to collect money an employee owes to someone else. When someone loses a civil court case and owes money to the winning side (called the “judgment creditor” or “creditor”), the court does not collect the money for the creditor. If the person who loses the case (the “debtor”) has a job and gets paid wages and he or she does not pay the creditor voluntarily, the creditor can file papers to have part of the employee’s wages taken (garnished or withheld) to pay the money that is owed. Wage garnishment is sometimes called “wage assignment,” “earnings assignment” or “earnings withholding.”
True
Once the court orders you to pay child support, you must make the monthly child support payments starting on the date the judge orders.
In every case ordering child support, the court will order that a wage assignment (garnishment) be issued and served. The wage assignment tells your employer to take the support payments out your wages.
When the local child support agency (LCSA) is NOT involved, both parents can agree that payments can be made in some other way and can ask that service of the wage assignment (sending the wage assignment to the employer) be "stayed" (put on hold). In this situation, the parents work out how child support will be paid and handle it between them.
If the LCSA is involved, they have to agree to have the wage assignment "stayed." The LCSA will most likely want an active wage assignment in place with the employer if they are involved in the case. They will also want all child support payments to go through the State Disbursement Unit.
Not paying child support can have very serious consequences. If the court finds that you have the ability to pay support but are willfully not paying it, it can find you are in contempt of court. Being in contempt of court could mean jail time for you for not paying child support. This enforcement tool is generally used only when all others have failed since it has such serious consequences.
IMPORTANT!! If the reason you cannot pay your child support or are falling behind is you lost your job, your income went down, you went to jail, or some other important change happened, you need to ask the court to change your child support amount. DO NOT WAIT. Even if you lose your job, you will be responsible for the full amount of child support until the child support order is changed by the court.
True
Step 1: For a weekly pay period, multiply $11 x 40 = $440.00
Step 2: Disposable earnings minus applicable minimum wage: $520 - $440 = $80.00
Step 3: The amount in Step 2 is more than zero.
Step 4: Multiply the amount in Step 2 by 50 percent (one half): 80 x 0.5 = $40.00
Step 5: Multiply the disposable earnings by 25 percent (one quarter): $520 x 0.25 = $130.00
Step 6: The amount from Step 4 ($40.00) is lower than the amount from Step 5 ($130.00). There is no order of higher priority, so the correct amount to withhold is $40.
Step 7: Not applicable.
True
True
For a federal tax levy from the IRS the employer sends to the IRS the amount left after deducting the standard deduction and personal exemptions from take home pay.
A tax levy is a collection tool for the IRS and local governments. Using a levy, these entities are allowed to take possession of your assets, including cash in your bank account, your future earnings, or other assets that can satisfy the tax debt.
Fortunately, it’s possible to prevent a levy from happening (or stop one that’s in progress).
Tax Levy Basics
Tax debts are among the most difficult debts to eliminate.
They don’t always go away in bankruptcy, and taxing authorities have more power than other types of creditors.
The best example of that power is a tax levy: the IRS seizes property to satisfy your tax debts without taking you to court and winning a judgment against you. A bank or credit card company, on the other hand, would have to bring a lawsuit against you and jump through more hoops to collect.
In addition, the IRS can jump to the front of the line. If you owe money to multiple creditors (such as the IRS, a mortgage lender, and a collection agency), the IRS has the power to get paid before anybody else.
What Happens with a Tax Levy?
A levy gives the IRS the ability to take your property. That can happen in several ways, including:
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