1. What is Garnishment Withholding?

Garnishment withholding is a legal process where a portion of a person's earnings is withheld by their employer for the payment of a debt as ordered by a court or government agency.

2. How Garnishment Calculation Works

The basic calculation for wage garnishment is:

Where:

• Disposable Income — Earnings after legally required deductions
• Applicable Percentage — Percentage set by court order (typically 25% for most consumer debts)

Note: Federal law limits garnishment to the lesser of 25% of disposable income or the amount by which weekly income exceeds 30 times the federal minimum wage.

3. Legal Limits on Garnishment

Details: The Consumer Credit Protection Act (CCPA) sets maximum amounts that may be garnished from an employee's disposable earnings in any workweek or pay period.

4. Using the Calculator

Instructions: Enter your disposable income (after taxes and other required deductions) and the percentage specified in your court order. The calculator will determine the garnishment amount.

5. Frequently Asked Questions (FAQ)

Q1: What is considered disposable income for garnishment?
A: Disposable income is what remains after deducting legally required items like federal, state, and local taxes, Social Security, unemployment insurance, and state employee retirement systems.

Q2: Can more than 25% be garnished?
A: For most consumer debts, 25% is the maximum. Exceptions include child support, alimony, taxes, and student loans which may allow higher percentages.

Q3: Are all types of income subject to garnishment?
A: Most wage income can be garnished, but certain benefits like Social Security, disability, and retirement income have different rules.

Q4: How often can garnishment amounts change?
A: Amounts typically remain fixed unless the court order is modified or income changes significantly.

Q5: What if multiple garnishments exist?
A: There are priority rules - typically child support comes first, then bankruptcy trustee payments, then other debts.