Missouri Wage Garnishment Checklist

Missouri Wage Garnishment Checklist

A Missouri wage garnishment order instructs your employer to deduct a specific amount from your wages and send it to the state to satisfy a tax debt. The Department uses this collection tool when a taxpayer owes unpaid taxes and has not responded to earlier collection notices or payment arrangements.

This enforcement action directly reduces the amount of money you receive in each paycheck.

Understanding what triggered the garnishment and what happens next will help you respond appropriately and explore available options.

What This Issue Means

Wage garnishment is a legal process in which the Missouri Department of Revenue requires your employer to withhold money from your paycheck to pay a state income tax debt. The

Department uses this collection tool when a taxpayer owes unpaid taxes and has not responded to earlier collection notices or payment arrangements.

For Missouri state tax debts, the Department must first file an Administrative Judgment with the

Circuit Clerk, which gives the tax lien the effect of a default judgment and allows the Department to issue garnishment orders. Once garnishment begins, it typically continues until the underlying tax debt is paid in full, a payment plan is established and honored, or the state releases the garnishment order.

Why the State Issued This Action

The Missouri Department of Revenue typically initiates wage garnishment after a taxpayer has failed to pay a tax debt and has not responded to earlier collection attempts. These earlier attempts include demand letters, payment notices, and notices of intent.

Before the Department can issue a garnishment, it must follow a statutory notice sequence that includes a Notice of Proposed Changes, Notice of Balance Due, Notice of Deficiency, and

10-Day Demand for Payment. The Department then files a Certificate of Tax Lien with the Circuit

Clerk to create an Administrative Judgment, which provides the legal authority to garnish wages.

What Happens If This Is Ignored

Ignoring a wage garnishment order allows the garnishment to continue as written by the state.

Your employer must continue withholding the specified amount from each paycheck. The garnishment does not stop or disappear without action from either you or the Department.

If the underlying tax debt remains unpaid and garnishment continues without resolution, the state may pursue additional collection actions such as levying bank accounts or placing liens on property. Responding to the garnishment by paying the debt, arranging a payment plan, or contacting the Department is the most direct way to address the issue and potentially stop or reduce the garnishment.

What This Does NOT Mean

Wage garnishment does not mean your employer will fire you or that you have lost all rights regarding your wages. Federal law and Missouri law prohibit employers from discharging an employee for any one garnishment.

Receiving a garnishment order does not automatically mean you will lose your job, have your professional license suspended, or face criminal charges. Garnishment is a civil collection tool, not a criminal penalty.

The state has not yet frozen your bank accounts or seized your property based solely on the garnishment order. Having wages garnished does not prevent you from filing future tax returns or receiving tax refunds, though refunds may be applied to the outstanding tax debt.

Garnishment Amount Limitations

For Missouri state tax debts, the standard garnishment limits do not apply. While Missouri law typically restricts withholding to the lesser of 25% of disposable earnings, 10% for head of family, or the amount exceeding 30 times the federal minimum wage, these restrictions are explicitly waived for state or federal tax debts.

The Missouri Department of Revenue is legally authorized to garnish up to 100% of disposable earnings for tax collection purposes. If you are experiencing financial hardship due to the garnishment, you may request a hardship review using the Garnishment Hardship Application

Form 5668.

Checklist: What to Do After Receiving a Wage

Garnishment Notice

1. Locate and read the garnishment notice carefully. Review the document for the specific amount being garnished, the tax year or years involved, and any deadline for responding. Keep the original notice and make copies for your records.

2. Contact your payroll or human resources department. Confirm with your employer that the garnishment order has been received and when it will take effect. Request written confirmation of the garnishment details from your employer’s records.

3. Calculate the amount owed and verify the debt details. Determine the total tax debt listed in the notice and confirm which tax year or years are involved. Note any penalties, interest, or collection costs mentioned in the notice.

4. Gather documentation related to the underlying tax debt. Collect your tax return if filed for the year or years referenced in the garnishment notice. Gather any correspondence from the Department of Revenue related to this tax debt, including prior notices or demand letters.

5. Contact the Department directly at the phone number listed on the garnishment notice.

Explain that you have received a garnishment notice and want to understand your options. Request written confirmation of the debt amount and the basis for garnishment.

6. Ask the Department about stopping or reducing the garnishment. Inquire whether the state will consider a payment plan or installment agreement to resolve the debt without continued garnishment. Determine whether the state can reduce the monthly garnishment amount if financial hardship applies.

7. If a payment plan is offered, obtain details in writing. Confirm the monthly payment amount, payment due date, and total number of payments. Ask whether the garnishment will stop once a plan is approved and when the stop will take effect.

8. Make the first payment or establish the payment plan. Follow the payment instructions provided by the Department. Keep records of all payments made, including dates, amounts, and payment methods.

9. Monitor your paychecks and the Department account. Review each pay stub to confirm the garnishment amount being withheld matches the notice. Check the Department of

Revenue website or request periodic account statements to track the debt balance.

10. Keep copies of all documents and correspondence. Maintain files containing the original garnishment notice, all Department letters, payment plan agreements, and payment receipts. Save emails and notes from phone calls with the Department and your employer.

What Happens After This Is Completed

After you contact the Department and provide information about your situation, the state will typically review your account and respond with the next steps. When a valid payment plan is in place and payments are being made on schedule, the state typically issues an order to your employer directing that the garnishment be released or suspended.

If you make a lump-sum payment toward the debt, the state will apply the payment to the balance, and if the payment satisfies the full debt, a garnishment release order will be issued.

Common Mistakes to Avoid

Missing the deadline to respond can result in the state proceeding with garnishment without further notice or opportunity for input. Not contacting the Department means you miss opportunities to discuss payment plans and alternative resolution options.

Failing to keep records of communication makes it difficult to prove what was discussed or agreed upon if a dispute arises later. Assuming the garnishment amount is correct without reviewing your own records or the state’s documentation could result in overpaying or failing to catch errors. Making informal verbal agreements without written confirmation creates misunderstandings about payment terms and garnishment status.

Frequently Asked Questions

Does wage garnishment show up on my credit report?

Wage garnishment itself does not directly appear on your credit report. The underlying tax debt may have been reported to credit bureaus before garnishment began, and that debt may remain on your report.

Can my employer fire me for having wages garnished?

No, federal law and Missouri law prohibit employers from discharging an employee for any one garnishment. Your employment status is protected under the law for a single garnishment.

How much of my paycheck can the state take for tax debt?

For Missouri state tax debts, the Department is legally authorized to garnish up to 100% of disposable earnings. The standard Missouri garnishment limits do not apply to state or federal tax collection.

Can I get the garnishment reduced if I am experiencing financial hardship?

The state may consider requests to reduce or modify garnishment based on financial hardship.

Contact the Department to discuss your situation and ask whether a reduction or adjustment is possible using Form 5668.

Final Steps and Resolution Options

Wage garnishment is a serious collection action, but it is not a permanent situation without options. Contacting the Department promptly and exploring payment plans or other resolution methods are the most effective ways to address it. Responding to the garnishment notice and engaging with the state often opens pathways to reduce or stop the garnishment that simply waiting will not provide.

Facing State Enforcement or Payroll Tax Issues?

If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.