What Is the FTB 2905 PIT?
FTB 2905 PIT is a form provided by the California Franchise Tax Board (FTB) that is forwarded to employers as a means to deduct wages from employees who possess an outstanding balance in their personal income tax. Upon receipt of this directive, the employer is obligated to remit up to 25% of the employee’s wages to the FTB until the entire tax debt is settled completely.
The FTB 2905 PIT is triggered by unresolved debt to California’s Franchise Tax Board. This wage garnishment is sent directly to the employer of a taxpayer with outstanding state income tax debt, meant to garnish up to 25% of earnings from the employee’s paycheck until their tax debt is paid in full.
What Employees Need to Do
Because the FTB 2905 PIT is an Earnings Withholding Order for Taxes (EWOT), it is a forced wage garnishment. This happens because the taxpayer ignored back taxes owed to the state. Employees do not need to respond to this form, as the wage garnishment the employer will already be required to deduct wages.
Although this is a forced wage garnishment, there are still actionable steps employees can take to protect income from wage garnishment:
- Settle the outstanding amount owed. Outstanding tax debt must be paid to the Franchise Tax Board directly. Once the state taxes are paid in full, the wage garnishment stops as the employer receives a notification from the FTB to stop withholding wages to pay off the debt.
- If you encounter financial difficulties, reach out to us for assistance. Priority Tax Relief offers several different types of tax relief services, including installment agreements for those who qualify.
- If you have already cleared your dues, get in touch with the FTB to close the account and lift the wage garnishment. Your enrolled agent can help you contact the FTB directly through our Tax Help Hotline.
Our tax relief services allow you to enlist the help of our experienced team of tax attorneys, enrolled agents, and CPAs to get a better understanding of the steps needed when an FTB 2905 PIT comes into effect.
Employee Wage Garnishment Deadline
Once the FTB serves the 2905 PIT Order, the employer is legally required to provide a copy to the employee within 10 days, and the mandatory deductions will begin on the very next pay cycle. Taxpayers must comply with allowing money to be taken from their paycheck. However, there may still be ways to stop wage garnishment from impacting your income. Consult with a tax professional about your options to pay back taxes.
What Employers Need to Do
It is the employer’s responsibility to implement the specified withholding preferences on the FTB 2905 PIT form. The employer uses the information provided on the form to calculate the correct amount of state income tax to be withheld from the employee’s wages.
Understanding and completing this form is of utmost importance for both employers and employees to ensure accurate tax withholding and compliance with California’s tax regulations.
Seeking assistance or tax relief? Contact Priority Tax Relief now.
