Transcript Slide 1

Wage Garnishment Legalities
Presented by: Angela E. Munsie, BS
Forsyth County Emergency Medical Services
Resources for Collecting Ambulance Debt
Private
Insurance
Pay
NC Debt
Setoff
Wage
Garnishment
Collection
Agency
What is a wage garnishment?
A wage garnishment is the process of
deducting money from an employee’s
(defendant) monetary compensation by
ordering a third party (the
garnishee/employer) to pay for a debt
owed by the employee directly to the
plaintiff.
When served on an employer, garnishments
are taken as part of the payroll process.
Now, let’s discuss
the legal
boundaries for
garnishing wages
for patients with
delinquent EMS
accounts…
There are 3 NC General Statutes that permit wage garnishment….
What gives EMS permission to wage garnish
patients for delinquent bills?
§ 44-51.4. Attachment or garnishment for county or city ambulance
or county or city supported ambulance service.
Treating Ambulance as Tax?
§ 105-378. Limitation on use of remedies.
What does NC General Statue 105-368 say?
§ 105-368. Procedure for attachment and garnishment.
Confused?
How to get started?
1.) Discuss your participation with your financial advisors, attorney’s and
prepare your billing office:
> Assign a Deputy County/City Tax Collector.
> Approve a garnishment fee.
> Approve a standard legal form to be served.
> Approve a standard letter for releasing a garn.
> Have Policies and Procedures standards in place so the
agency has a consistent face.
* How much effort to expend on collections?
2.) Contact the Employment Security Commission and enroll.
3.) Review your database and prepare to garnish.
How much effort to expend on
collections?
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Amount of staff available to focus on wage garnishment accounts.
Other resources available?
Valid Social Security Numbers?
Timeline for garnishing debt.
Salary baseline for geographic area.
Follow-up procedures.
What will work for your agency? Develop a
process that will yield a high return on bad debt.
W
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L
C
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M
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Example #1:
Patient has consistent employment and
above average gross earnings.
Mr. Barber used the ambulance June 2007 and the ambulance ride cost
$510. The insurance company applied the ambulance trip to the
deductible. Mr. Barber has not responded to bills or collection notice. The
account is ready for garnishment. With a valid social security number, the
Wage History File notes a current employer and a salary of approximately
$60,000/year. The 10% deduction amount of his gross wages (based on
bi-weekly payroll) will satisfy the debt within two or three paydays.
Patient has inconsistent earnings
and collecting unemployment.
Example #2:
Mr. Gaskins used your ambulance in March 2007. His ambulance ride cost
$475. Mr. Gaskins insurance denied his claim because date-of-service was
after his termination date. Mr. Gaskins has not responded to five bills and
collection notice. Upon researching Mr. Gaskins in ESC, you discover that
Mr. Gaskins is currently receiving Unemployment Benefits with ESC. This
account would qualify for another collection resource.
Example #3:
Patient has consistent employment
and average earnings .
Mr. Pikuson used your ambulance in April 2007, and December 2006. The
patient is private pay and has made no attempt to contact your office. The
current account balance totals $1,020. Upon researching the wage history
database for garnishment, you see that he has remained with the same
employer for over two years. Based on the information provided, the patient
makes approximately $22,000/year and is unlikely to change jobs.
Example #4:
Patient has consistent employer,
but earnings are low.
Mrs. Cruz had a car accident in March 2007 and as a result had to use
your ambulance service. Mrs. Cruz received her settlement payment
from Allstate Insurance for the car accident, but didn’t pay her
ambulance bill. Patient has no health insurance and has not contacted
your office. Upon researching her wage history file, you notice there
hasn’t been any wages reported on her behalf since third quarter 2007.
Her annual income in 2006 was $8385 and her annual income in 2007
was $8918.
The ESC database will provide every employer’s
information needed to complete a wage
garnishment request form.
Account
Number
Federal ID
Number
North Carolina }
Beach County }
Notice of Attachment & Garnishment for Ambulance Service
(Authorized by North Carolina G.S. 44-51.4)
Plaintiff:
Beach County Ambulance
Defendant:
John F. Doe
5678 Main Street
Winston-Salem, NC 27101
123-12-1234
Lilly’s Dry Cleaning
5454 North Main Street
Winston-Salem, NC 27107
56-1111111
AND
Garnishee:
EMPLOYER: PLEASE READ ALL ENCLOSED INFORMATION. EMPLOYEE SHOULD RECEIVE THEIR COPY IMMEDIATELY.
______________________________________________________________________________________________
This is to attach and garnishee any wages, rents, bank deposits, debts, or any other thing of value, now due or to become due to the
defendant. The person having same in his possession shall become liable for the amount due to the extent of the amount he owes or
has in his possession but not more than 10% of wages or other compensation for personal services in any one pay period shall be
liable to attachment and garnishment for failure to pay. The above named Defendant's indebtedness to this taxing unit, on account of
duly assessed ambulance service, is as follows:
Date of service(s)
January 1, 2007
Total Due:
Payable to:
Account Number
XXXXXX
Account Balance
$500.00
$510.00
XXXXX County Ambulance
Tax ID# 56-0000000
P.O. Box 555
Winston-Salem, NC 27023
Billing Phone: (800) 555-5555
Date Served: February 20, 2008
___________________________________
Deputy County-City Tax Collector
Your Name (336) 555-5555
Example of Garnishment Form
County Fee
$10.00
On the wage garnishment form:
Enter the appropriate information into the form. Make a
copy for your office, for the employer, and for the
employee.
 Sign it, date it and mail it out of your office immediately
with a list of instructions.
 Follow-up with accounts in approximately 6 weeks.
 If an employer sends you an explanation as to why the
account can’t be garnished at this time, just remove from
garnishment and prepare account for another collections
resource.
 Add garnishment fees to patient’s accounts (if applicable)
and COLLECT!
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NO!
NO!
NO!
If your patient owes:
> Internal Revenue Service
> North Carolina Department of Revenue
> Child Support
> Other government agencies or courts
> Bankruptcy
Your ambulance debt WILL take a back seat!!!
Don’t wait in line    use another collection resources
Contact Information
Employment Security Commission
[email protected]
Email:
> Who you are.
> Who needs access.
> What’s your intent to use ESC.
Forsyth County Emergency Medical Services
Angela E. Munsie www.fcems.com
[email protected]
(336) 703-2747 o
(336) 727-8088 f