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Payroll & Benefits

Federal Tax

Federal Tax Levies are a form of involuntary deductions. Federal Tax Levies are wage garnishments by the federal government for the collection of employees' earnings for unpaid federal taxes. Federal tax levies are different than most involuntary deductions because the Internal Revenue Service (IRS) gives the employee an exemption of a certain amount and the rest of their net pay goes to the IRS. If the employee does not return the form 668-W(c) or a written request, we use Married/Separate with One for all employees until we receive a new exemption amount and status from them. The current exemption for an individual Married /Separate with One is 668-W(c) (copy of the table). Payroll will continue to make the deductions until the balance is paid or the University receives a release for the employee from the IRS. No changes may be made to the employee's withholding amounts once the tax levy is received by Payroll. The exception to this is that the IRS may require the University to stop a voluntary deduction to the Credit Union.

Last Updated: July 29, 2008

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