IRS Tax Levy

IRS Tax Levy garnishment rate values are included in the Tax Table updates. They use Common Codes Category/Value of PYTX/ LTyyft (yy = the calendar year, {"18"}; f = frequency, {Weekly – "W", BiWeekly – "B", SemiMonthly – "S", and Monthly – "M"}; t = Table ID, {Table 1 = "A", Table 2 = "B"}. They replace NU Common Codes LEVY/01####A and LEVY/01####B, where in calendar years previous to 2017, users had to update themselves in order to process the protected wage amount. The updated PYTX/LTyyft tables in this release are based on current values found in http://www.irs.gov/pub/irs-pdf/p1494.pdf.

Due to the possibility that an employee's Tax Levy garnishment may be based on a year prior to 2017 levels of rate values, Professional Services recommends setting up a new deduction definition for the TAXLEVY calc code that uses the new PYTX/LTyyft common codes for Tax Levy garnishment assignment that occur beginning calendar years 2017 and forward. The settings for the employee assignments will be the same as shown in the next section.

Employee Tax Levy Assignment

Additional information is needed in order to process the table entries for IRS Tax Levies. This information is stored in additional fields on the employee assignment (HRPYCA/HRPYPR, Miscellaneous Payroll Tab). 

• Enter the Begin/End Date to indicate the effective date range of the assignment.
• Enter "DEDU" in the CDH Type field to indicate it is a deduction.
• Enter the CDH Assignment for the IRS Tax Levy.
• Enter the Amount, if the employee has made a payment arrangement with the IRS, otherwise, leave blank.
• Enter A for amount or P for percentage in the Amount (A) / Percent (P) field.
• Enter the Vendor.
• Enter the Status.
• Enter the Frequency.

• In Special Code 2, enter a two-character code for the filing status plus a two-digit code for the number of exemptions. For example, if the employee is married filing jointly with two dependents, enter MJ01.

  Filing Status Code	Description
  SI	Single
  MJ	Married Filing Jointly
  MS	Married Filing Separately
  HH	Head of Household

• In Special Code 3, enter the year the tax was levied in YYYY format (ex: 2018)
• Press Enter to update.

Non-Resident Aliens (NRAL)

Additional withholding for NRAL calculations will automatically be included with a simple setup change. Mark NRAL employees by putting "NRAL" into Special Code (3) on the FIT deduction assignment. A specified additive dollar amount should be entered in Associated Value (3) on the deduction definition.