Attachment and Garnishment – Employer Copy

You should deduct monies from the taxpayer’s wages, salaries, or other funds (bank deposits, royalties, rent, etc.) You must make garnishment payments at least every 30 days until paid in full. Make garnishment payments online or by mail.

Deduct the appropriate amount depending on your financial relationship with the taxpayer.

• If you report the taxpayer’s wages on a W-2, then deduct 10% of the taxpayer’s gross wages or salaries from each paycheck. Only wages and salaries are subject to the 10% limitation. By NC law, you cannot deduct more than 10% of a taxpayer’s monthly gross wages or salaries.
• If you report contract payments on a 1099, then collect 100% of the taxpayer’s contract payments, up to the amount of the total liability detailed in the notice.
• If you collect other types of funds (bank deposits, rent, royalties, etc.), then collect 100% of these funds up to the amount of the total liability detailed in the notice.

Once the garnishment is paid in full, you will receive a garnishment release letter.

Review the employer's garnishment FAQs for more details about the responsibilities of an employer. If you have additional questions, call 1-877-252-3252 or 1-888-352-0116.

Because the employer has a financial relationship with the taxpayer, the employer is responsible for the total liability. If the employer does not make garnishment payments, then the employer will receive a notice of proposed assessment for the tax, penalties, and interest due. (See G.S. 105-241.9)

The employer should mail or fax a completed Separation of Employment Notification Coupon, or the garnishment letter or notice with the detailed information to:

• Mail: Garnishment and Payment Processing Unit, PO Box 27431, Raleigh, NC 27602-1168
• Fax: 919-733-1231