Wage Garnishments
ALDOR may garnish a taxpayer’s wages, salaries, bonuses, commissions, and any other type of compensation from an employer. The employer is required to withhold 25 percent of the taxpayer’s gross wages. The wage garnishment remains in effect for subsequent pay periods until the total amount of the garnishment has been withheld and remitted by the employer.
Financial Institution Garnishments
A garnishment may be issued to a bank, credit union, brokerage firm, etc. ALDOR is entitled to receive the full amount of money in an account at the time the garnishment is served, not to exceed the amount of the tax liability.
Other Types of Garnishments
Garnishments may be issued to any third-party holding property owned by the taxpayer. Examples might include insurance proceeds or rental income.
ALDOR provides employers and financial institutions the ability to answer garnishments and remit funds/wages on My Alabama Taxes. If you have received a garnishment letter, sign into your My Alabama Taxes account and navigate to the Other Actions tab. In the Business Panel, click the Respond to a garnishment letter link, and complete the form. If you need assistance to setup a new My Alabama Taxes Garnishment web account, call 334-353-8096.