What is the key difference between a wage levy and a wage garnishment?

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Multiple Choice

What is the key difference between a wage levy and a wage garnishment?

Explanation:
The essential difference lies in who enforces and what is taken. A wage levy is an IRS action that seizes assets to satisfy a tax debt—this can include taking funds directly from sources like a bank account or, in some cases, wages, as part of the IRS’s seizure power. A wage garnishment is a court-ordered withholding of a portion of an employee’s wages, directing the employer to send that money to the creditor. So, levies come from the IRS and seize assets, while garnishments come from a court and withhold wages from earnings.

The essential difference lies in who enforces and what is taken. A wage levy is an IRS action that seizes assets to satisfy a tax debt—this can include taking funds directly from sources like a bank account or, in some cases, wages, as part of the IRS’s seizure power. A wage garnishment is a court-ordered withholding of a portion of an employee’s wages, directing the employer to send that money to the creditor. So, levies come from the IRS and seize assets, while garnishments come from a court and withhold wages from earnings.

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