Garnishment for Ind. Contractor

HRinGA

we received a garnishment for someone who is an independent contractor. I didn't think we could do this. Can anyone back me up?

marc

I do not think a garnishment can apply to payments that are not wages. There are other types of instruments that address vendor payments.

The IRS levy can be drafted broadly enough to cover those types of payments, but garnishments are limited.

LivindonSouth

You need legal advice. Whether or not the garnishment has been properly ordered and presented is beside the point, as far as what YOU should do. You don't want to be in a position of refusing to honor a court ordered process. An attorney can tell you what you next move should be. He/She might suggest you send the garnishment letter back with one of your own explaining the relationship. But, I would not rely on what Forumites think the law is.

marc

Good advice. In Nevada, the last garnishment we received for a subcontractor triggered a call to our attorney. He advised us to contact the court clerk, which we did, and explain that the individual was a contractor not an employee. Further, he indicated a different type of court order would come with respect to contractor payments. Finally, he said if we treated the contractor payments like wages, and honored the garnishment, we would be liable to the contractor.

TN HR

Marc and Don both provided excellent advice. What Marc described in his last post is absolutely the case. There is a different type of order that will be issued and which you will have to comply with.

Gene

HRCalico

Sorry for the late post, but I just had some experience with contractor/garnishments this week. Please note that it comes via my new second "hat" (it's more like a beanie) as Village Treasurer for my 80-person metropolis. I am responsible for billing and collecting for our sewer and garbage services, and there are a few people who simply won't pay.

We received a small claims judgement in April on one individual, who has since begun working as an independent contractor. I called the county court magistrate (I believe that is his title) who said you CAN garnish an IC in Nebraska. He remembered an individual who didn't receive payment the first few checks because the garnishment cleared it out.

So, check local listings if you don't know for sure. Of course, if you are on my end, you have to know where the individual is contracting, and I'm pretty sure the fellow in question isn't going to voluntarily pony up that info.

HRinGA

Thanks for the info. I did find out we can garnish our IC in GA. Although a lengthy discussion went on (b/t mgr and me) about whether or not I could do it. (Like I make these things up as I go)
It seems to vary state to state. So, as the early posts indicate, seek ye legal council in the village.