State:
March 13, 2010
Which Payments Are Exempt from Tax Levy?

In a BLR webinar presentation entitled ‘Payroll: How to Legally Handle Tax Levies and Garnishments’, Attorneys Clint Robison and Amy Jensen explain that all amounts paid to an employee are subject to levy unless specifically exempt and there are different exemption rules for levies. Typically, the following payments are exempt from a federal tax levy:

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  • Unemployment compensation benefits
  • Workers’ compensation benefits
  • Annuity and pension payments under certain provisions
  • Certain armed service-connected disability payments
  • Certain public assistance payments
  • Prior withholdings order for child support

Clint Robinson and Amy Jensen are lawyers with Hinshaw & Culbertson, one of the largest and oldest law firms in the country. He is a partner in the Los Angeles Office, where he leads its west coast labor and employment practice. Clint Robinson can be reached at crobison@hinshawlaw.com.

Amy Jensen can be reached at ajensen@hinshawlaw.com. She is a recognized leader in the legal community and devotes substantial time to defending class actions involving high stakes wage and discrimination claims and helps clients comply with wage and hour laws.

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