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Colorado Garnishment Formula:
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Wage garnishment in Colorado is a legal process where a portion of an employee's earnings is withheld by their employer for the payment of a debt. Colorado follows federal guidelines but has specific state exemptions that protect a portion of disposable earnings.
The calculator uses the Colorado garnishment formula:
Where:
Explanation: The garnishment is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed Colorado's exemption amount.
Details: Colorado follows the federal Consumer Credit Protection Act (CCPA) but provides additional protections. The state exemption amount is adjusted periodically and varies based on pay period length.
Tips: Enter your disposable earnings (after taxes and other required deductions) and the current Colorado exemption amount. The calculator will determine the maximum amount that can be legally garnished.
Q1: What is considered disposable earnings in Colorado?
A: Disposable earnings are what remains after deducting taxes, Social Security, unemployment insurance, and other legally required deductions.
Q2: How often is Colorado's exemption amount updated?
A: The exemption amount is typically adjusted annually based on cost-of-living changes.
Q3: Are there different rules for child support garnishments?
A: Yes, child support garnishments can take up to 50-60% of disposable earnings depending on circumstances.
Q4: Can my employer fire me for one garnishment?
A: Colorado law prohibits termination for a single garnishment, but multiple garnishments may not be protected.
Q5: Where can I find Colorado's current exemption amounts?
A: The Colorado Judicial Branch website publishes current exemption amounts, which vary by pay period length.