Tax Levy Deduction (LEVY)
The Internal Revenue Service (IRS) can collect taxes owed by levying the wages of indebted taxpayers. The employer establishes the tax levy deduction by using a goal amount and the net pay exemption available to the employee. The system then calculates the amount due to the IRS each pay period. The Tax Levy (LEVY) transaction is used to create and maintain tax levy deductions.
Field InformationField Information
This transaction captures the following information:
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Tax Levy details, such as deduction type, deduction plan, number of defendant, period of validity and the dollar amount of the net pay the employee can receive for each pay period in the Net Pay Exemption field.
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Recipient information, such as case number, override vendor information, and override vendor description.
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The User Defined Fields can be enabled via DESIGNER and can be used by sites as per their specific requirements. These fields consist of User Defined Text, Date, and Amount Fields and can also be used for any extra information that sites need to track.
Note: Enter the date that the deduction should cease in the To Date field to terminate the Tax Levy Deduction.
The Tax Levy Deduction transaction can be created in the following ways:
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Select the Create action on the Transaction Catalog.
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Select the Create Tax Levy Deduction row-level action on the Tax Levy Deduction tab of the Deduction Management (DEDM) activity folder.
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Select the Modify Tax Levy Deduction row-level action on the Tax Levy Deduction tab of the Deduction Management (DEDM) activity folder.
