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Wage Garnishment Calculation:
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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. Common reasons include child support, student loans, taxes, and creditor judgments.
The standard calculation for wage garnishment is:
Where:
Explanation: The garnishment is the lesser of 25% of disposable earnings or the maximum amount allowed by law or court order.
Details: Federal law limits garnishment to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage. Some states have stricter limits.
Tips: Enter your disposable earnings (after taxes and required deductions) and the maximum garnishment amount allowed (either by law or court order). The calculator will determine the actual garnishment amount.
Q1: What counts as disposable earnings?
A: Disposable earnings are what remain after legally required deductions (taxes, Social Security, etc.), but not voluntary deductions like health insurance or retirement contributions.
Q2: Are all garnishments limited to 25%?
A: No, some obligations like child support or tax debts may allow higher percentages, up to 50-65% in some cases.
Q3: Can multiple garnishments be taken from my paycheck?
A: Generally, total garnishments can't exceed 25% of disposable earnings, except for certain priority debts like child support.
Q4: Are there any protected amounts?
A: Yes, earnings below 30 times the federal minimum wage are completely protected from garnishment for most debts.
Q5: How do I know if a garnishment is valid?
A: You should receive a court order or official notice. Contact the issuing agency or consult an attorney if you have questions.