garnishments

Irie

Can wages earned and reported on a 1099 have garnishments levied against them? I don't know that much about the intricacies of payroll rules and regs. Thanks.

stilldazed

Are the wages being reported on 1099 actually wages, or are they payments on a contract basis or for some other tangible benefit to an employee? Are the $$ reported as wages to SSA & IRS, ultimately showing up on the individual's W2?

Irie

Individual is getting payments for hours worked and will be given a 1099 at the end of the year. There will be no W2.

joannie

Depending on what state you are in, anything of value you possess that belongs to another person, with a court order could be subject to garnishment or forced sale so the funds could be garnished.

NaeNae55

I think you need to check with your lawyer or tax accountant. First, paying someone an hourly fee through a 1099 can be tricky. Is this person a professional (like lawyers, etc)?

Also, when I worked at an insurance company we had physician payments garnished by the IRS. Of course, they can do anything, but you get the point.

You want to be very careful as if you don't comply when you are supposed to you can be held responsible for the debt.

Good luck!

Nae