Withholding Order

[msmegan21]

What is the name of your state (only U.S. law)? TX

My ex is a partner in an S Corp with his father, everytime the withholding order is submitted to the company his father receives it and calls and states that the ex does not work there. There is no question on whether or not he works there I well documented evidence. I was wondering if I could serve the withholding order to the Registered agent (who is also an officer of the corp and a practicing CPA)? The AOG office is in the middle of filing contempt charges but I really need the money, I have not received child support in 3 years (arrears of $23k). I am just trying to help myself get the ball rolling.

Thanks for your advice!

 

[Zigner]

What is the name of your state (only U.S. law)? TX

My ex is a partner in an S Corp with his father, everytime the withholding order is submitted to the company his father receives it and calls and states that the ex does not work there. There is no question on whether or not he works there I well documented evidence. I was wondering if I could serve the withholding order to the Registered agent (who is also an officer of the corp and a practicing CPA)? The AOG office is in the middle of filing contempt charges but I really need the money, I have not received child support in 3 years (arrears of $23k). I am just trying to help myself get the ball rolling.

Thanks for your advice!

What makes you think a "partner" (ie: shareholder) is an "employee"?

 

[LdiJ]

What makes you think a "partner" (ie: shareholder) is an "employee"?

Just FYI, a working shareholder of an S-corp is required to be an employee under the tax regs...and they can never be a "partner". I will admit that many S-corps do not follow the regs in that respect, but eventually they get caught. That requirement is to ensure that social security and medicare taxes are paid on the shareholder's "wages".

OP's ex could be a non-working shareholder, and therefore not an employee, but apparently she has evidence to the contrary.

 

[msmegan21]

What makes you think a "partner" (ie: shareholder) is an "employee"?

He submits quotes and is supervising on job sites, paying invoices and employees. My question was not whether or not he is an employee that I know. My question is who I can send the withholding order to because his father receives them and ignores them or lies about them. I know the registered agents information and address.

 

[LdiJ]

He submits quotes and is supervising on job sites, paying invoices and employees. My question was not whether or not he is an employee that I know. My question is who I can send the withholding order to because his father receives them and ignores them or lies about them. I know the registered agents information and address.

Unfortunately there isn't anyone else you can send the order to. The registered agent doesn't control the books or the money of the S-corp, and therefore would be of no use to you.

What you need to do is keep taking dad back to court for contempt, with the proof that you have that he is working for the S-corp. You have to make things hard enough for him that he will make his father obey the withholding order.

 

[EnforceSupport]

Alternatively, you can bring an action against the S Corp for failure to comply with their statutory duty to honor the assignment order. If father is, in fact, an employee (receiving a salary of benefits in lieu thereof) and the corp has been properly served with the garnishment, the corp is liable.

By the way, I disagree that serving the agent is not of use, especially if it is signed for.

 

[msmegan21]

Thank guys I appreciate the advice. I know the registered agent is also an officer of the company (Treasurer) and I am pretty sure he does the company taxes.