Contact

Payroll

555 S. Howes Street, Suite 206
Fort Collins, CO 80523-6004

Tel: (970) 491-MyHR (6947)
Fax: (970) 491-2337

Levies & Garnishments

Current Employees
Definitions Federal Tax Levy State Tax Levy Garnishment FAQ

Definitions

  • Disposable Earnings - The amount remaining from the gross earning for a pay period after the deductions required by Federal and State law.
  • Earnings - Compensation paid or payable for personal services.
  • Garnishment - A legal assessment against an employee's wages. Garnishments are initiated by companies or individuals that have processed legal papers through a county or district court.
  • Judgment Creditor: A party who has a money judgment or an order for support of a person that is due and unpaid.
  • Judgment Debitor - A party against whom a money judgment or order for support of a person has been awarded.
  • Levy - A legal assessment against an employee's wages. Levies are initiated by the Federal or State Revenue Departments for payment of taxes.

Federal Tax Levy

All Federal Tax Levies should be mailed to Colorado State University, HR Payroll Campus Delivery 6004, Fort Collins, CO 80523-6004. If a levy is received in the employee’s department, please forward the levy to the Payroll Department.

The Payroll Department will verify the social security number, name and address to assure that the levy is against a current employee. If the levy is for a terminated, retired, or deceased employee, the response form will be completed as such and returned to the IRS.

Upon receipt of a Federal Tax Levy, issued against a current employee, the withholding of the levy money will commence on the next available pay date and continue until the full amount is paid off.

The employee will receive a copy of the levy along with instructions on how to complete the withholding statement. The tax schedule showing the amount the employee will receive after the levy has been withheld will be included with the employees copy. Their paycheck will continue at this amount until the levy is paid in full or the employee makes other arrangements with the IRS. The IRS will notify the Payroll Department if other arrangements are made.

The Payroll Department must receive from the IRS a "Release of Levy" to end the withholding of the levy.

State Tax Levy

All State Tax Levies should be mailed to Colorado State University, HR Payroll Campus Delivery 6004, Fort Collins, CO 80523-6004. If a levy is received in the employee’s department, please forward the levy to the Payroll Department.

The Payroll Department will verify the social security number, name and address to assure that the levy is against a current employee. If the levy is for a terminated, retired, or deceased employee, the response form will be completed as such and returned to the State taxing authority.

Upon receipt of a State Tax Levy, issued against a current employee, the withholding of the levy money will commence on the next available pay date and continue until the full amount has been paid off.

The employee will receive a copy of the levy in their home department within 3 working days. State tax levy payments are calculated as a percentage (specified by the taxing authority) of the employee’s disposable income. The deduction will continue to be withheld until the levy is paid in full or the employee makes other arrangements with the state taxing authority. The state taxing authority will notify the Payroll Department if other arrangements are made.

Levies are calculated against the disposable earnings. Disposable earnings are the amount remaining from the gross earnings for a pay period after the deductions required by Federal and State laws have been taken.

The Payroll Department must receive from the state taxing authority a "Release of Levy" to end the withholding of the levy.

Garnishment

All garnishments should be mailed to Colorado State University, HR Payroll Campus Delivery 6004, Fort Collins, CO 80523-6004. If a garnishment is received in the employee’s department, please forward the garnishment to the Payroll Department. All garnishments that are hand delivered by a county server must come to the Payroll Department at 555 Howes Street, Suite 206. Do not accept a garnishment in an employee’s department.

The Payroll Department will verify the social security number, name and address to assure that the garnishment is against a current employee. If the garnishment is for a terminated, retired, or deceased employee, the response form will be completed as such, notarized and returned to the Court/Attorney who filed the garnishment.

Upon receipt of a garnishment that is issued against a current employee, the withholding of the garnishment will commence on the next available pay date, and continue for a maximum of 180 days. If an employee has multiple court ordered garnishments, they will be processed, one at a time, in the order received.

Garnishments are calculated at 25% of disposable earnings unless a different percentage is negotiated through the Court. Disposable earnings are the amount remaining from the gross earnings for a pay period after the deductions required by Federal and State laws have been taken.

The employee will receive a copy of the garnishment papers in their home department within 3 working days. In addition, the employee will receive a copy of the answer sheet that was sent to the filing Court/Attorney following the first payroll deduction. The answer is a notarized document informing the Court/Attorney when the garnishment will be withheld, and/or the amount to be withheld. The garnishment withholding will continue from the beginning of the effective period, until one of the following occurs: the Payroll Department receives a "release of garnishment" from the filing Court/attorney, the garnishment is paid off, or it expires.

Child Support court orders are taken before any amount is withheld for a tax levy or a garnishment.

Frequently Asked Questions

How much can you take from my checks? 

The Payroll Department is required to deduct a portion of your salary earned from your future paychecks - it could be as much as 50% or higher in some instances. 

Can I have Payroll reduce the amount taken? 

No. This matter is between you and the taxing agency or firm/person named as plaintiff in the order. Only the issuer of the garnishment has legal authority to modify or release your levy. You may wish to consult your attorney. 

Will the garnishment amount be deducted from my net pay? 

It depends upon the type of garnishment. For example, a Federal Levy will exempt a predetermine amount of your net pay from levy. Otherwise, the deduction is taken from your "Disposable earnings" 

Do I have to pay any fee for my garnishment? 

The law does have a provision that gives an employer the capability of charging a wage attachment fee on all child support garnishments. The fee will depend upon what each state allows and could vary from $1.00 up to $8.00 per garnishment per pay period. 

Can I skip a deduction? 

No. You must call the appropriate agency or an attorney to get a delay or to work out a different payment arrangement. 

How can I have the garnishment stopped? 

Payroll must have a written release from the judgment creditor five days prior to payday in order to stop your deduction. 

Why is the Statement of Exemption Form Important? 

If you get an IRS Levy it's very important that you complete your Statement of Exemptions form and immediately return it to the Payroll Office! If we don't receive this Statement of Exemptions forms (Part 4 and 5), then we'll be forced to give you the default specified by the IRS: single -- with one exemption. If this occurs, then each check could be taken down to the base amount as mandated by the IRS. By filling out the form you can receive the exempted amount that you're legally entitled to. It is also important that you contact the IRS to arrange a payment.

CSU is not permitted to give legal advice. If you have questions about deductions taken on your check, please give your Payroll Office a call and we will assist in any way possible.