Wage garnishment formula
July 22nd, 2010
Wage garnishment formula
The wage garnishment act is created in such a way that it should be fair to all the parties concerned. If you are a borrower, then you have a right to livelihood. Thus there must be some amount of money left behind after the enactment of the wage garnishing act. The wage garnishing act can not take all the money and live you without any monetary means of lively hood. Similarly there are other issues also. For example if there is child support order then it is important to give them priority. The family support should be first priority. The government has given a wage garnishment formula to help the employers to make the calculations for the deductible wage garnishment amount. The government has published documents in which the wage garnishment formula is explained very well. They have given the examples for the usage of the wage garnishment formula. The first point is that if the borrower is getting the minimum wages then the employer can not with held any amount of the wages under this wage garnishment formula. Let us take some cases to illustrate how this wage garnishment formula works in the practice. Let us assume that an employee has a disposable income of 4240 per week. Let us assume that there is student loan web garnishment order served on this employee. There is also a child support order for 490 on this employee. Now as per the wage garnishment formula, you can deduct maximum 25% of the disposable income. This means that at the most you can with held 460 from the wages of this employee. But another point is that there is a child support order. It must take first priority as per the wage garnishment formula. So this $60 amount will not be available for the student loan repayment. But the child support order is for $90. Incase of the child support the limitation of 25% of the disposable income is not valid. So the employee will have to with held $90 for the child support order and he can not with hold any amount for the student loan. This is the way the wage garnishment formula works in the practice. There is the wage garnishment worksheet to help the employer to calculate the exact amount of the disposable income and come to conclusion about the wage garnishment amount. The government has provided one web site, in which you can fill in the different amounts and can get the final figure for the wage garnishment available. All this is based on the wage garnishment formula. If you study the government web site well you can use the wage garnishment formula very well.