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    Willis3000's Avatar
    Willis3000 Posts: 10, Reputation: 1
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    #1

    Nov 8, 2009, 06:20 PM
    Ordered by State of CA to garnish employee wages
    We are a company based in NJ, with an employee who is based and paying taxes in CA. We received a notice from the State of CA informing us that the employee owes taxes from 2006. The notice requires that we begin garnishing a portion of the employees wages to pay the debt in installments.

    If the employee is disputing the finding, are we in a position to hold off garnishing the wages until the matter is resolved, or are we really given no flexibility here? Am I correct to assume that we must follow with the order for now, and if the employee is paying unjustifiably, then it is between them and the tax borough to settle?
    s_cianci's Avatar
    s_cianci Posts: 5,472, Reputation: 760
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    #2

    Nov 8, 2009, 06:25 PM
    If you were given an order to garnish the employee's wages, then you must follow it. You'll be notified if and when it's modified.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Nov 8, 2009, 06:33 PM

    Yes you have to withhold, if you don't, the court will merely hold your company personally liable for the payment.
    Willis3000's Avatar
    Willis3000 Posts: 10, Reputation: 1
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    #4

    Nov 8, 2009, 06:48 PM

    Thanks. The order is to garnish a percentage of the employee's "disposable" earnings. Is this the same as net earnings? I don't see what else it could mean, but just want to make sure.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Nov 8, 2009, 07:33 PM

    No, it is the gross earnings minus taxes, the actual net may also have things like insurance or investments taken out

    Disposable Income
    Willis3000's Avatar
    Willis3000 Posts: 10, Reputation: 1
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    #6

    Nov 8, 2009, 08:39 PM

    Great, thanks for the info!
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