MANAGE FEDERAL TAX LEVY EXEMPTIONS

Use this screen to enter weekly federal tax levy exemption amounts and the dates on which those amounts become effective. This table is used when computing a federal tax levy garnishment deduction on the Compute Payroll screen. To enter a garnishment with a Federal Tax Levy type, this table must be populated with an effective date that is earlier than the date of the federal tax levy order. You must update this table when the IRS releases new tax levy exemption tables.

Populate this screen before entering a new record on the Manage Employee Garnishments screen and before computing an employee garnishment on the Compute Payroll screen.

Data entered in this screen must be based on weekly amounts. When you execute the Compute Payroll screen, these exemptions are converted to the employee payroll frequency.

People
Payroll
Garnishments

Identification

Filing Status

Enter, or click

to select, a filing status. The IRS provides the exemption information on form 668-W(c)(DO) or 668-W(ICS). The options for the filing status are:

Weekly Exemption Amounts

Effective Date

Enter, or click

to select, the date on which the federal tax levy exemption amounts become effective.

Standard Deduction

Amount per Exemption

65 Years and/or Blind

Enter the weekly exemption amount for employees who are 65 years old and/or blind.

As an example, the information in the table below was obtained from the IRS Tax Levy Tables (for weekly pay periods) for 2005. The amount to be used from the following table displays in the right column.

Table for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income (Forms 668-W(c), 668-W(c)(DO)) and 668-W(ICS) 2005

	Number of Exemptions Claimed on Statement
Status	1	2	3	4	5	6	More than 6
Single/Married (Separate Return)	157.69	219.23	280.77	242.31	403.85	465.38	96.15 plus 61.54 for each exemption
Unmarried Head of Household	201.92	263.46	325.00	386.54	448.08	509.62	140.39 plus 61.54 for each exemption
Married Filing Joint Return (and Qualifying Widow(er)s)	253.85	315.38	376.92	438.46	500.00	561.54	192.31 plus 61.54 for each exemption

The table below, also obtained from forms 668-W(c), 668-W(c)(DO) and 668-W(ICS) 2005, shows how to figure the additional exempt amount for taxpayers at least 65 years old and/or blind:

Table for Figuring Additional Exempt Amount for Taxpayers at Least 65 Years Old and/or Blind

Filing Status	Exemptions	Weekly
Single or Head of Household	1	24.04
Single or Head of Household	2	48.08
Any Other Filing Status	1	19.23
	2	38.46
	3	57.69
	4	76.92

You would fill out the Manage Federal Tax Levy Exemptions screen like this:

The weekly Standard Deduction of 96.15 and the Amount Per Exemption of 61.54 are taken from the More than 6 column in the first table. The figure 24.04 in the 65 Years and/or Blind column is taken from the second table.

Costpoint determines whether an employee is at least 65 years and/or blind by looking at the Manage Employee Information screen. The age is determined by Birth date. To determine whether the employee is blind, Costpoint looks at the Blind check box in the HR Data tab.

To determine whether the spouse is at least 65 years and/or blind, Costpoint looks on the Garnishment Calculation subtask of the Manage Employee Garnishments screen.