Garnishment-only tax authority (U.S. and CA)

Garnishment-only tax authorities allow you to process garnishments for a locale in which you pay no taxes and, therefore, have no tax authority defined.

You do not need to create garnishment-only tax authorities for every locale you process garnishments for; however, you do need either a tax authority or garnishment-only tax authority set up for every jurisdiction for which you have garnishment orders.

Example

Two Rivers Company operates in Minnesota, New Jersey, and Ontario. A new employee moved from Dallas, Texas, and the payroll department received a child support order from the state of Texas. Since Two Rivers does not have a tax authority defined for Texas, they defined a new garnishment-only tax authority for Texas.