Tax Commission News Release
New Idaho law changes wage garnishment for tax debts
BOISE, IDAHO — June 28, 2013 — Employers who receive levies on employees’ wages from the Idaho State Tax Commission will see some changes starting July 1. A new law changes a levy on wages to a continuous wage garnishment that takes 25 percent of a person’s gross earnings each pay period to pay off a state tax debt. If the person has a federal garnishment, the state garnishment is reduced to 10 percent. The Tax Commission previously levied up to 100 percent of a person’s net wages.
The new law doesn’t apply to wage levies in effect before July 1, 2013.
Employees who have their wages garnished may qualify for a different payment method. “We encourage all taxpayers to call us to discuss options for a payment plan to resolve their debt,” said Debbie Coulson, administrator for the Tax Commission’s Collections Division.
For more information about wage garnishments or payment plans, call the Tax Commission at 334-7660 in the Boise area or (800) 972-7660 toll free.