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.

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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.
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