Changes to Court-Ordered Debt and Vehicle Registration Collections Earnings Withholding Orders (EWO) Public Service Bulletin

November 1, 2023

Purpose of Bulletin

The purpose of this notice is to advise of a change to Franchise Tax Board (FTB) Court-Ordered Debt and Vehicle Registration Collections Earnings Withholding Order garnishment amounts for orders issued on or after September 1, 2023.

Background

On September 29, 2022, the Governor signed SB 1477 into law. The new law reduces the amount of wages FTB can levy for a pay period, and is effective September 1, 2023.

Additional Information

Earnings Withholding Orders (Employers)
The maximum amount of a debtor's disposable earnings for a pay period that is subject to levy shall not exceed the amount specified in Section 706.050 of the Code of Civil Procedure for orders issued on or after September 1, 2023. This means employers will continue to process Court-Ordered Debt and Vehicle Registration Collection EWOs like they would process an order from a judgment creditor, just at a reduced percentage.

Note: This change in California law does not impact the way employers calculate the amount of wages to withhold for a pay period pursuant to FTB’s personal income tax Earnings Withholding Orders for Taxes (EWOT).

Public Inquiries

Please contact Court-Ordered Debt Collections at 916.845.4064 or Vehicle Registration Collections at 888.355.6872, for questions regarding the changes to the Court-Ordered Debt Collections and Vehicle Registration Collections levy exemption amounts for SB 1477.

You can also visit our website at ftb.ca.gov, and search for court-ordered debt collections or vehicle registration collections, for more information and wage garnishment withholding instructions. We anticipate the wage garnishment calculator application to be updated to include this law change in January 2024.