UHR Payroll Division, upon receipt of legal documentation, is required by law to withhold monies from an employee's wages to satisfy certain debts.
UHR Payroll Division will notify an employee, by letter, of a debt withholding notice it has received, i.e.: a garnishment, tax lien, bankruptcy, or wage assignment. Employees should also receive prior notification of a debt collection by the issuing court or authorized agency.
The UHR Payroll Division is legally bound to withhold or garnish an employee's wages as instructed by the court.
UHR Payroll Division calculates disposable earnings by subtracting federal, state, and social security taxes from an employee's expected gross pay.
The maximum portion of disposable earnings subject to garnishment is the lesser of:
General
A bankruptcy decree is issued by a United States Bankruptcy Court on behalf of an employee to prevent further voluntary or involuntary debt collections.
Chapter 7 Bankruptcy Generally, a Chapter 7 Bankruptcy decree accompanied by an Order Staying Levy or Garnishment stays any existing or future garnishments or liens against an employee's wages for a specific time period.
Garnishment or tax levy funds withheld by Payroll following the bankruptcy petition date are remitted to the employee. Debt funds withheld before the petition date but have not been remitted will be remitted according to the Bankruptcy Court's instructions.
Chapter 13 Bankruptcy A Chapter 13 Bankruptcy decree accompanied by an Order Staying Levy or Garnishment stays any existing or future garnishment or lien against an employee's wages until released.
Debt funds held by UHR Payroll Division are remitted to an appointed trustee as instructed by the Bankruptcy Court. Additionally, UHR Payroll Division may be ordered to withhold a specified amount from an employee's paycheck for a specific number of months and remit the funds to the trustee.
Tax Liens Tax liens are issued by the Internal Revenue Service (IRS) and state tax departments to recover delinquent taxes, penalties, and interest charges.
Federal Tax Levy UHR Payroll Division is required, by law, to withhold wages for an IRS tax levy based on the number of exemptions claimed by an employee.
UHR Payroll Division will notify an employee of a federal tax levy, in writing, and include a statement of personal exemptions. Employees have seven calendar days to complete this form and return it to UHR Payroll Division. UHR Payroll Division will start to withhold at the maximum rate (one personal exemption) if the form is not received within this time period.
UHR Payroll Division will continue to withhold for a federal tax levy until released by written notification from the IRS or an order staying levy or garnishment from a bankruptcy court.
Virginia Tax Levy UHR Payroll Division is required, by law, to withhold an employee's entire net paycheck for a tax levy issued against them by the Virginia Department of Taxation. Net paycheck is defined, for this purpose, as an employee's gross wages minus any existing payroll deductions and federal, state, and social security taxes.
UHR Payroll Division will notify an employee, in writing, of a state tax levy issued against them.
UHR Payroll Divison will continue to withhold an employee's net paycheck until the debt is satisfied or is released by written notification from the Virginia Department of Taxation or an order staying levy or garnishment from a bankruptcy court.
Wage Assignments A wage assignment is a voluntary withholding of a specific amount of wages between an employee and a creditor to satisfy a debt payment.
Wage assignments most frequently are payments to the University of Virginia Hospital for hospital debts or to the Department of Social Services for child support payments.
UHR Payroll Division will withhold a specific dollar amount each pay period to satisfy the wage assignment agreement and remit the amounts as they are withheld.
Questions concerning the contracted amount to be withheld should be first directed to the agency issuing the wage assignment.
