Tax Levy (Involuntary Wage Attachment)

A tax levy is issued to employees who fail to pay their taxes on time. The amount deducted from the employee represents taxes, penalties, or interest that is in arrears. In the case of a federal levy, the governmental taxing authority sends a notification of a levy on employee wages, salary and other income. This notification indicates the amount of the levy and specific tax information needed to calculate the levy correctly. You might need to enter exemption amounts for the levy. The Wage Attachment Workbench enables you to set up federal and local levy tables that apply to all employees. For each individual with a tax levy, you indicate the standard deduction and personal exemption amounts based on the levy notice to access the correct levy tables. The JD Edwards EnterpriseOne Payroll system enables you to override the table amounts and to specify a different method of calculating the levy deduction.