Student Loan Wage Garnishment/Withholding

[Sabre]

One of my clients laid a question on me on the 15th which i have no experience with.

Apparently one of his employees has not made a student loan payment in many years. My client has been contacted by a Pioneer Credit Company requesting that my client withhold from his wages. The story is a little garbled but I believe he said they represent Sallie Mae or another governmental entity.

Does anyone have experience with this? What documents does Pioneer need to show my client? How is the withholding calculated?

My client is a straight shooter and does everything by the book so I want to give him by the book advice.

Any help out there would be appreciated.

Kirk

[Lion]

Pub 15

I'm guessing that Pub 15 or one of its series has directions on how to deal with a garnishment of wages.

[taxdude71]

I did one a few years back. If I remember correctly the instrucitons are right on the sheet they mail you. I think it was 20% at the time.

[Nashville]

Court Order

Mr. Glenn, I wouldn't respond whatsoever to a collection agency. They need to get a court order from a US or State Court, and your client should not garnish unless so directed by a court or taxing authority.

[JohnH]

I agree. Not a cent to them. Give the letter to the employee and let him work it out with them. No garnishment unless it's court ordered or from a taxing authority.