A wage garnishment is court order that instruct an employer to withhold the earnings of an individual for the payment of a tax debt.
The amount that can be taken to satisfy a wage garnishment is based on the employee’s disposable earnings. The maximum amount the federal government may take is the lesser of:
- 25 percent of the employee’s disposable earnings or
- The amount by which an employee’s disposable earnings for the workweek are greater than 30 times the federal minimum wage.
For example, a worker making $500 per week, after tax, would face a $125 wage garnishment under the first scenario. Under the second scenario, if the minimum wage is $7.65, wages of $306 could be garnished. In this case, the lesser amount of $125 would be garnished. There are scenarios where you may convince the government to garnish a lower amount, but it is often possible to avoid wage garnishments all together by actively engaging the government agency.
If you have received a notice that the federal, state or local government is considering or have ordered a wage garnishment against your earnings we can aggressively represent your interests and expedite a satisfactory resolution. Hiring a licensed professional demonstrates that you are serious about resolving the matter and allows you to leverage our expertise in resolving tax disputes.
Call us today to find out how we can help you resolve your back tax issues and get a wage garnishment released.
If you have received a notice that the federal, state or local government is considering or have ordered a wage garnishment against your earnings Podraza CPA can aggressively represent your interests and expedite a satisfactory resolution.