An IRS-mandated payroll deduction to collect an employee\'s unpaid federal taxes, delivered via Form 668-W. The IRS provides special exemption tables that override standard garnishment limits under the CCPA.
Why IRS Tax Levy on Wages matters for employers
When an employee has unpaid federal taxes and the IRS has exhausted collection attempts, it issues a continuous wage levy via Form 668-W to the employer. Unlike a standard court garnishment, the IRS levy is continuous and applies to each subsequent paycheck until the debt is satisfied or the IRS releases the levy. The amount exempt from the levy is calculated using IRS Publication 1494 tables based on the employee's filing status and pay period.
Employers who receive a Form 668-W must comply immediately. Failure to withhold and remit the levied amount makes the employer liable for the amount that should have been withheld. Employers should not disclose the levy to coworkers and should maintain employee privacy throughout the process.
How BEG handles IRS Tax Levy on Wages for clients
BEG Managed Payroll handles IRS Tax Levy on Wages as part of a fully managed payroll service at $25-$45 per employee per month. Clients do not need to track compliance rules, filing deadlines, or calculation methods related to IRS Tax Levy on Wages on their own. Everything is included. Learn about BEG Managed Payroll.
Frequently asked questions
Do employers have to manage IRS Tax Levy on Wages themselves?
No. A managed payroll provider handles IRS Tax Levy on Wages as part of full-service payroll. BEG manages this for clients at $25-$45 PEPM with no system migration required.
What happens if IRS Tax Levy on Wages is handled incorrectly?
Errors related to IRS Tax Levy on Wages can trigger IRS penalties, state agency assessments, or employee disputes. Catching and correcting errors before filing is far less costly than after-the-fact corrections.
How does BEG handle IRS Tax Levy on Wages for managed payroll clients?
BEG tracks, calculates, and remits everything related to IRS Tax Levy on Wages as part of fully managed payroll. Clients do not need to monitor compliance -- that is included in the service at $25-$45 PEPM.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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