HR Fast Facts: What are the Rules for Calculating Garnishment Maximums?
Learn information on Federal and state rules for garnishments. Use these rules when calculating a employee’s per-paycheck garnishment amount.
Below, you’ll find information on Federal and state rules for garnishments. Use these rules when calculating a employee’s per-paycheck garnishment amount.
Federal Minimum Wage Rule = Amount of disposable income in excess of 30 (hours) X the Federal Minimum Wage, OR the Employee State or Local Minimum if greater than the Federal Minimum Wage
- MINIMUM WAGE RULE (number of hours used for that state)
- The state minimum wage
- Exempt wages per week. See these instructions for converting weekly amounts for employees paid by bi-weekly, semi-monthly, or monthly schedule.
- Percentage maximums by type of garnishment
– Child Support
– Tax Levies
– Creditor Garnishment
– Spousal Support
– Student Loan
- State-specific exceptions or rules, if any
- Information about the admin fee and employer fee.
*The minimum wage rule was supplied from this NCSL page. Please refer to this source for verification.
