Levy
A levy is a legal action taken by the government to take someone’s or an organization’s assets or property to pay off a debt or obligation to the government. A levy is a last-ditch effort to collect money owed to the government and is typically used only after other methods of collection have failed. Assets like bank accounts, wages, automobiles, and real estate are all subject to levy.
A wage garnishment, which is a court order requiring an employer to withhold a portion of an employee’s wages and send it directly to the creditor to pay off a debt, is typically referred to as a levy in the context of payroll and employment. Wage garnishments can be utilized to gather neglected charges, youngster support instalments, and different kinds of obligation. Most of the time, the amount of the garnishment is calculated as a percentage of the employee’s disposable income, which is the amount of money left over after legal deductions like taxes and Social Security contributions have been made.
Wage garnishments and other levies must be complied with by employers under the law. Penalties and legal action against the employer may result from your failure to do so. When an employee receives a wage garnishment, their employer is obligated to notify them and abide by the order until it is released or satisfied. Because mistakes can lead to legal liability, employers should also make sure they are withholding the correct amount of wages and sending them to the right creditor.
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