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. Federal law limits the amount that can be garnished from wages.

2. How Does Garnishment Calculation Work?

The calculator uses the federal garnishment formula:

Where:

• \( Disposable \) — Earnings after legally required deductions
• \( Exemption \) — Federal minimum wage exemption amount
• \( 25\% \) — Maximum percentage that can be garnished

Explanation: The garnishment amount is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage.

3. Importance of Garnishment Calculation

Details: Accurate garnishment calculation ensures compliance with federal laws that protect debtors from excessive wage withholding while allowing creditors to collect what they're owed.

4. Using the Calculator

Tips: Enter disposable earnings (after taxes and other required deductions) and the applicable exemption amount (typically 30 times federal minimum wage). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is considered disposable earnings?
A: Disposable earnings are what remain after legally required deductions like federal, state, and local taxes, Social Security, unemployment insurance, and state employee retirement systems.

Q2: Are there different rules for different types of debt?
A: Yes, child support, alimony, bankruptcy, student loans, and taxes may have different garnishment limits and rules.

Q3: What was the federal minimum wage for 2022-2023?
A: The federal minimum wage was $7.25/hour, making the weekly exemption $217.50 (30 × $7.25).

Q4: Can states have different garnishment rules?
A: Yes, some states have more protective garnishment laws that may further limit wage garnishment.

Q5: How often is garnishment calculated?
A: Garnishment is typically calculated per pay period (weekly, bi-weekly, etc.) based on that period's disposable earnings.