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Paying and recording vendor garnishments
July 31, 2024
Q. In AP, if we have to garnish a vendor's payment, what is the process as we would have to pay the state as well?
A.
(Answered by IOFM's third-party tax experts)
The answer below is in relation to information reporting for garnishment payments. If a reportable payment you are making to a vendor is subject to garnishment, you report the full gross amount on the vendor’s 1099 as this individual is the beneficial owner of the entire amount of the income. The amount garnished is merely being…
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
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