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California Senate Bill 16, an act to add Section 706.053 to the Code of Civil Procedure, relating to wage garnishment

California Senate Bill 16, an act to add Section 706.053 to the Code of Civil Procedure, relating to wage garnishment

The State Assembly is about to vote on SB16, a bill that would apply local minimum wage rates when calculating the amount of wages that can be garnished to collect on defaulted student loans. A week ago APA sent the attached letter, opposing the bill, to the leadership in the State Assembly. (In February, we sent a similar letter to the State Senate.)

 

We need your help to let lawmakers know this bill will cause problems for businesses and for the people responsible for garnishing employees’ wages. Please share this message with your chapter members and urge them to write or call their representatives in the State Assembly.

 

  1. Find your legislator using one of these links:
  2. By district – http://www.legislature.ca.gov/assemblydistricts.html
  3. By address – http://findyourrep.legislature.ca.gov/
  4. From your lawmaker’s page, send this (or a similar) message:

 

I am a payroll professional, and I respectfully request that you oppose SB 16, which will require employers to apply local minimum wage rates when calculating the amount to withhold for a student loan garnishment. As detailed in a letter submitted by the American Payroll Association (APA) to the Assembly Leadership, relying on the local minimum wage will be difficult for employers and unfair to employees.

I support fairness in the wage garnishment process that emphasizes a reasonable approach for employees without unduly increasing the administrative burden on employers. Payroll professionals appreciate provisions that help the employees we pay, but we also ask lawmakers to recognize that, in the case of a garnishment, employers are third parties to a legal dispute. Changes to the law requiring employers to rely on a local minimum wage for garnishments also require that employers spend time, effort, and resources that are quite unrelated to the application of a local minimum wage to pay the workers in their employ.

Further, applying a local minimum wage is inherently unfair to California residents. By basing the exemptions on a local minimum wage, California residents working in locations with the highest minimum wages are afforded greater exemptions than those living in other areas. An employee in San Francisco is provided greater exemptions than an employee in Cupertino, who in turn is provided greater exemptions than an employee in San Diego. Within jurisdictions that apply a local minimum wage based on the number of employees (e.g., Los Angeles and Malibu, effective July 2017) the disparity in exemptions is even more remarkable.

Alternative methods exist by which the state might provide robust and fair consumer protections to employees without causing undue difficulty on employer-garnishees. I urge you to vote against SB 16 and consider alternatives.

IRS Issues Guidance on Payroll Phishing Scheme

The phishing scheme targeting payroll professionals continues to claim victims. The scheme involves fraudulent email messages that appear to be from a company executive requesting personal information on employees. Because reporting time is critical, the IRS has provided guidance on what to do when you receive a fraudulent email or fall for the scheme, including a new way to quickly report data loss [Form W-2/SSN Data Theft: Information for Businesses and Payroll Service Providers; last updated 3-28-17; https://www.irs.gov/individuals/form-w2-ssn-data-theft-information-for-businesses-and-payroll-service-providers].

How to Report a Data Loss Related to the W-2 Scam

Send an email to dataloss@irs.gov to notify the IRS of a Form W-2 data loss. Type "W2 Data Loss" in the subject line so the email can be routed properly. Do not attach any employee's personally identifiable information (PII) data. This information should be provided:

  • Business name
  • Business employer identification number (EIN) associated with the data loss
  • Contact name
  • Contact phone number
  • Number of employees impacted

Note: The IRS will not initiate contact with taxpayers by email, text messages, or social media to request personal or financial information.

How to Report Data Loss to State Tax Agencies

A breach of PII could have an effect on the victim's tax accounts with state agencies as well as with the IRS. Email the Federation of Tax Administrators at StateAlert@taxadmin.org for information on how to report victim information to state agencies.

How to Report Data Loss to Other Law Enforcement Officials

  • Businesses/payroll service providers should file a complaint with the FBI's Internet Crime Complaint Center (IC3) at https://www.ic3.gov/default.aspx.
  • Businesses/payroll service providers may be asked to file a report with their local law enforcement agency.

. How to Report Receipt of a W-2 Email Scam Message If your business received the email but did NOT fall victim to the scam, forward the email to the IRS. The IRS needs the header from the phishing email for its investigation, so you must do more than just forward the email. Here's what to do with the fraudulent W-2 email scam message:

  • In your email message to the IRS, provide the email headers in plain ASCII text format. Do not print and scan. Instructions for locating the email headers in Outlook can be found in a Microsoft Office Support page.
  • Save the phishing email as an email file on your computer desktop.
  • Open your email and attach the phishing email file you previously saved.
  • Send your email containing the attached phishing email file to phishing@irs.gov. Type "W2 Scam" in the subject line. Do not attach any sensitive PII data.
  • Send your email containing the attached phishing email file to phishing@irs.gov. Type "W2 Scam" in the subject line. Do not attach any sensitive PII data.

What to Tell Employees
For employers that fall victim to the phishing scheme, the IRS provides guidance on what to tell employees.

Suggestions include reviewing the IRS's Taxpayer Guide to Identity Theft, IRS Publication 5027, Identity Theft Information for Taxpayers (https://www.irs.gov/pub/irs-pdf/p5027.pdf), the Federal Trade Commission's publication Data Breach Response: A Guide for Business, and IRS Publication 4524, Security Awareness for Taxpayers.