In a BLR webinar entitled ‘Payroll: How to Legally Handle Tax Levies and Garnishments’, attorneys Clint Robison and Amy Jensen explain how withholdings regarding garnishments are calculated. Generally, garnishment is limited to the lesser of:
- 25% of the employee’s disposable earnings
- the amount by which disposable earnings are greater than 30 times the federal minimum hourly wage ($7.25)
Greater amounts may be garnished for child support, bankruptcy, or federal/state tax payments. Notification of greater garnishments may occur in the form of a child support order, a court order regarding bankruptcy or a bankruptcy trustee order or some sort of federal or state tax levy.
Clint Robison is partner in the Los Angeles office of Hinshaw & Culbertson, one of the largest and oldest law firms in the country, where he leads its west coast labor and employment practice. Clint Robinson can be reached at firstname.lastname@example.org. Amy Jensen is a senior employment attorney in the firm's Los Angeles office, who provides counseling and litigation services to a variety of companies, including restaurants, retail, manufacturing, and financial companies. She can be reached at email@example.com.