1. What is Wage Garnishment?

Wage garnishment is a legal procedure where a portion of a person's earnings is withheld by their employer for the payment of a debt. The amount that can be garnished is limited by federal and state laws.

2. How Does the Calculator Work?

The calculator uses the federal wage garnishment formula:

Where:

• \( Disposable \) — Disposable earnings (after required deductions)
• \( Exemption \) — Protected amount based on minimum wage
• \( 25\% \) — Maximum percentage that can typically be garnished

Explanation: The garnishment is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed the exemption amount.

3. Importance of Garnishment Calculation

Details: Proper garnishment calculation ensures compliance with legal limits, protects employee rights, and helps employers correctly process wage withholdings.

4. Using the Calculator

Tips: Enter disposable earnings (after taxes and other required deductions) and the applicable exemption amount. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What counts as disposable earnings?
A: Disposable earnings are what remain after legally required deductions (taxes, Social Security, etc.), not voluntary deductions like retirement contributions.

Q2: How is the exemption amount determined?
A: The exemption is typically based on 30 times the federal minimum wage (currently $7.25 × 30 = $217.50 per week).

Q3: Are there different rules for different types of debt?
A: Yes, child support/alimony may allow higher garnishment percentages, while student loans and taxes have different rules.

Q4: Do state laws affect garnishment?
A: Some states have more protective laws that further limit garnishment amounts beyond federal standards.

Q5: Can multiple garnishments be applied?
A: Generally, total garnishments can't exceed 25% of disposable income, except for certain priority debts like child support.