PDA

View Full Version : URGENT ADVICE NEEDED! Direct Deposit of spouse's pay into my checking account? Ohio Ohio


Booklover
10-09-2006, 11:14 PM
Recently we were made aware that the IRS intends to levy our joint checking account for taxes allegedly owed by my husband prior to our marriage. We were advised to open a new bank account in only my name since I am not a party named in the IRS levy. My husband requested that his direct deposit paycheck be halted and issued as a paper check to him. His employer (a private college) indicated they do not sign checks anymore and he can only receive his pay via direct deposit. He then told them he would like his pay deposited into my individual account and was told they couldn't do this. Is this true? We once had his payroll deposited into my personal checking (again, his name was not on the account) when we lived in NJ. Is there a law in Ohio prohibiting the direct deposit of a spouse's paycheck into the other spouse's checking account? Is it really any business of his employer where his pay is deposited as long as he is signing authorization that the check be deposited to a particular account, and he provides the routing numbers to do so?

I would appreciate any advice on our rights. We are trying to protect ourselves from loss of his income while we resolve the disputed tax situation. We are extremely worried that we will not be able to pay our living expenses if his payroll is siezed from the joint account where it is presently deposited.

Thank you.

ScottB
10-10-2006, 04:03 AM
told them he would like his pay deposited into my individual account and was told they couldn't do this.

There is no good reason they can't do this.

Any direct deposit authorization form I have seen does not ask for the name of the account holder.

Just get one, fill it out and give it to payroll to process.

Pattymd
10-10-2006, 04:49 AM
There is no law that prohibits the employer from depositing your husband's pay into your account. There is also no law that requires them to do so. Many employers will deposit only to an account on which the employee is an owner/signatory. This is to protect the employer when (if) there is a situation requiring reversal of the direct deposit, because the employer is required to notify the recipient of the funds of the reversal. That's easy to do if the (or an) owner of the account is the employee; it is not so easy to do when he is not. I've been in payroll for many (many) years and my departments have never done this and never will.

You should contact the IRS about the "innocent spouse" protection. Or your husband can simply go down to the IRS and see if they will agree to a voluntary agreement to withhold a fixed amount from his paycheck; it's rare that they don't agree to this.

Booklover
10-10-2006, 11:22 AM
Thank you for the helpful answers. We are grateful for this site and will be back when issues arise regarding employee rights (or if there are further questions related to this thread). Any additional insights or advice are welcome :)

hr for me
10-10-2006, 12:57 PM
One other quick note..if they don't/can't levy the bank account, they can and will levy his paycheck directly with his employer such that the direct deposit never happens. It may take a little time for them to track him down, but they will!

If you owe the IRS money, call them and work out a payment plan. They don't just go away. And the penalties just get steeper and steeper.

rr

Booklover
10-10-2006, 01:05 PM
Thank you for your concern about the possible wage garnishment. We are actually aware of this and have been working with a tax professional to resolve matters with the IRS, but the IRS has jumped ahead with the levy on the account -- and it may occur anytime in the next few weeks, so we are trying to secure our assets until a resolution has been reached (and we were running up against some unexpected roadblocks with my husband's employer).

We hope to have the matter on its way to resolution before any garnishment is ever necessary. It is a very scary and frustrating experience when income is limited but expenses seem endless -- and the IRS seems to go after the little people a lot -- especially b/c most of us don't have the means to protect ourselves. As it is, we've had to borrow funds to hire a professional, b/c we couldn't do it ourselves and the IRS will just eat you up if they can.

If there's anyone out there with any other advice about preventing wage garnishment, I'll be happy to hear it :) The tax problems my husband had before we got married have made the last 10 years very difficult (he has had extended periods of time without work -- so we have never been in a situation to pay these back taxes, and the IRS just keeps adding more penalties and interest). It becomes quite a quagmire.

NonCometL
10-11-2006, 05:29 AM
My husband requested that his direct deposit paycheck be halted and issued as a paper check to him. His employer (a private college) indicated they do not sign checks anymore and he can only receive his pay via direct deposit. .

I can't imagine that this is legal it - it sure isn't in this state. What if you were an employee who didn't even have a bank account? Are they not going to pay you? They can't legally require you to open an account, nor can they require you to give them your account information. I don't know about where you're from, but couldn't imagine that your state doesn't make this illegal. In my state, not only does the employer have to give you an actual paycheck if you so choose, but it has to be drawn on a bank that you can access for the purposes of cashing the check. I highly doubt that they can refuse to issue you a paper check.

Pattymd
10-11-2006, 05:33 AM
In Ohio, direct deposit cannot be mandated unless you are a state employee. The employee must be able to choose the financial institution. There is no provision in Ohio law that the employee not incur an added cost to have an account.

Plsek
03-02-2007, 06:12 PM
In Ohio, direct deposit cannot be mandated unless you are a state employee. The employee must be able to choose the financial institution. There is no provision in Ohio law that the employee not incur an added cost to have an account.

Do you have a source for this? I am being forced into direct deposit at my work. I want to fight it. We are a small company and I'm certainly NOT a state employee.

Pattymd
03-04-2007, 05:25 AM
Nothing I can cite from the web. This was in my Payroll reference "bible". Call the state Dept. of Labor for confirmation if you like.

jbb03
03-13-2008, 12:00 PM
Pattymd, call the Ohio Department of Commerce. I had same situation at a job. The employer can make you do direct deposit according to a woman i spoke with. The number is: 16146442239...

cbg
03-13-2008, 12:11 PM
Jbb03, thank you very much for your suggestion, but this thread is over a year old now. I suspect the situation has been resolved. :)

Pattymd
03-13-2008, 12:11 PM
I'm not calling anyone. If the original poster wants to do so, they may. And didn't I refer the poster to the state Dept. of Labor for confirmation over a year ago?

jbb03
03-13-2008, 12:18 PM
woops sorry

Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements