1. What is Wage Garnishment?

Wage garnishment is a legal procedure where a portion of a person's earnings is withheld by an employer for the payment of a debt. It's typically ordered by a court or government agency.

2. How Garnishment is Calculated

The garnishment amount is determined by:

Where:

• Disposable Income — Earnings after legally required deductions
• Exemption Amount — Protected portion of income (varies by jurisdiction)
• 25% — Maximum percentage that can typically be garnished

Explanation: The garnishment is the lesser of either 25% of disposable income or the amount by which disposable income exceeds the exemption amount.

3. Legal Limits on Garnishment

Details: Federal law limits wage garnishment to the lesser of 25% of disposable income or the amount by which disposable earnings exceed 30 times the federal minimum wage. Some states have more protective laws.

4. Using the Calculator

Tips: Enter your disposable income (after taxes and required deductions) and the applicable exemption amount for your jurisdiction. The calculator will determine the maximum garnishment amount.

5. Frequently Asked Questions (FAQ)

Q1: What types of debts can lead to wage garnishment?
A: Common reasons include child support, student loans, taxes, and court judgments for unpaid debts.

Q2: Can I be fired for having my wages garnished?
A: Federal law prohibits termination for a single garnishment, but multiple garnishments may not be protected in all states.

Q3: How is disposable income calculated?
A: It's typically gross income minus legally required deductions (taxes, Social Security, etc.), but voluntary deductions may not be subtracted.

Q4: Are there different rules for child support garnishment?
A: Yes, child support garnishments can take up to 50-60% of disposable income depending on circumstances.

Q5: Can I challenge a wage garnishment?
A: Yes, you may be able to challenge it in court if you believe it's incorrect or causes undue hardship.