Attachment and Garnishment – Employer Copy

This notice is sent to inform you that a taxpayer who works for you has an unpaid total liability. Since the taxpayer did not pay the total liability in full, you are responsible for collecting the unpaid total liability. The total liability is final and collectible.

 

 

 

 

 

 

 

 

 

 

Review our Paying and Responding to Your Notice playlist for more videos on how to pay a bill or notice and request an installment payment agreement.

What should I do?

Wage garnishments are deducted from a taxpayer’s wages, salaries, or other funds (bank deposits, royalties, rent, etc.). You must make garnishment payments every 30 days until the total liability is paid in full. You can make garnishment payments online or by mail.

The amount you deduct depends on the type of financial relationship you have with the taxpayer.

  • If you report the taxpayer’s wages on a W-2, you must deduct 10% of the taxpayer’s gross wages or salaries from each paycheck. Only wages and salaries are subject to the 10% limitation. By NC law, you cannot deduct more than 10% of a taxpayer’s monthly gross wages or salaries.
  • If you report contract payments on a 1099, you must collect 100% of the taxpayer’s contract payments, up to the amount of the total liability.
  • If you collect other types of funds (bank deposits, rent, royalties, etc.), you must collect 100% of these funds up to the amount of the total liability.

You will receive a garnishment release letter once the garnishment has been paid in full.

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Where can I get more information?

Review the garnishment FAQs for more details on your responsibilities as an employer or taxpayer. If you have additional questions, call 1-877-252-3252 or 1-888-352-0116.

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What if I don’t make the garnishment payments?

Because you have a financial relationship with the taxpayer, you are responsible for the total liability. If you do not make garnishment payments, you will receive a notice of proposed assessment for the tax, penalties, and interest due. (See G.S. 105-241.9)

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What if the taxpayer is no longer employed with my company?

Mail or fax a completed Separation of Employment Notification Coupon to:

  • Mail: Central Collection Unit PO Box 1168, Raleigh, NC 27602-1168
  • Fax: 919-733-1231

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