1. What is Wage Garnishment?

Wage garnishment is a legal procedure where a portion of a person's earnings is withheld by their employer for the payment of a debt. Common reasons include child support, student loans, taxes, and creditor judgments.

2. How Garnishment Calculation Works

The basic garnishment formula is:

Where:

• Percent — The court-ordered or legally allowed percentage (as a decimal)
• Disposable Wages — The employee's take-home pay after legally required deductions

3. Legal Limits on Garnishment

Federal Limits: Under Title III of the Consumer Credit Protection Act (CCPA), garnishment is limited 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 lower limits, and certain debts like child support or taxes may have higher limits.

4. Using the Calculator

Instructions: Enter the garnishment percentage as a decimal (e.g., 0.25 for 25%) and the employee's disposable wages. The calculator will compute the garnishment amount.

5. Frequently Asked Questions (FAQ)

Q1: What counts as disposable wages?
A: Disposable wages are what remains after legally required deductions like taxes, Social Security, and state employment insurance.

Q2: Can multiple garnishments be applied?
A: Generally, total garnishments can't exceed the legal limit. Some garnishments (like child support) take priority.

Q3: Are all earnings subject to garnishment?
A: No, certain types of income like Social Security, disability, and retirement benefits are typically protected.

Q4: How often is garnishment applied?
A: Typically each pay period until the debt is satisfied or the garnishment order expires.

Q5: Can an employee be fired for garnishment?
A: Federal law prohibits firing an employee for a single garnishment, but multiple garnishments may not be protected.