A Tax Levy is a legal action by the IRS or state to seize an employee’s wages or assets to satisfy unpaid tax debts, enforced through employer payroll.
- What is a tax levy?
Answer: It is a legal seizure of wages for unpaid taxes. - What triggers it?
Answer: It is triggered by persistent tax non-payment. - What are the limits?
Answer: Limits depend on disposable income and exemptions. - What are the implications?
Answer: It affects employee finances and morale. - How does HR handle it?
Answer: HR complies with levy notices and adjusts payroll.
