In a BLR webinar presentation entitled ‘Payroll: How to Legally Handle Tax Levies and Garnishments’, Attorneys Clint Robison and Amy Jensen discussed tax levies and importance of communication with the employee regarding tax levies. Employers are required to comply with Internal Revenue Service (IRS) instructions and levy the employee’s wages. The following are important points focusing on the communication that should occur between the employer and employee, and the impacts of such communication:
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- The employer is merely an intermediary or a conduit and has absolutely no power to change the levy or not comply with it
- Employee expectations can be managed through adequate communication
- The employer can work proactively to provide the employee with the information they need
- The reaction from employees is less likely to be dramatic, harmful, problematic or expose the employer to potential liability, if information is shared with the employee upfront regarding what is likely to happen regarding garnishments
- Having a trained Human Resources (HR) professional or payroll administrator, who can appropriately provide the necessary information to the employee, is beneficial
Clint Robinson and Amy Jensen are lawyers with Hinshaw & Culbertson, one of the largest and oldest law firms in the country. Clint Robison is a highly regarded employment attorney providing counseling and litigation services to public and private companies. He is a partner in the firm’s Los Angeles Office. Clint Robinson can be reached at crobison@hinshawlaw.com.
Amy Jensen is a senior employment attorney in the firm's Los Angeles Office, who provides counseling and litigation services to a variety of companies, including restaurants, retail, manufacturing, and financial companies. Amy Jensen can be reached at ajensen@hinshawlaw.com.