State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
March 17, 2010
How to Calculate a Priority Garnishment for an Employee

In a BLR webinar entitled ‘Payroll: How to Legally Handle Tax Levies and Garnishments’, attorneys Clint Robison and Amy Jensen explain how a priority garnishment can be calculated for an employee. The payroll department will have information regarding maximum garnishments that are applicable to the employee’s earnings such as the following:

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
  • Weekly earnings of $217.50 or less: No garnishment
  • Weekly earnings of $217.51 - $290: $$ Above $217.50
  • Weekly earnings of $290 or more: Max 25%
If an employee has $295 in disposable earnings per week, a garnishment order with priority for $90 per week for child support and a garnishment order for defaulted student loan, the maximum garnishment based on wages will be $73.75. However, normal restrictions do not apply to orders for support so the whole $90 can be taken. There will be no withholding for the student loan. However, if the priority for child support was $50 instead of $90, then $50 will be used to settle the child support garnishment while $23.75 will go towards the student loan garnishment.

Clint Robison is a partner in the Los Angeles office of Hinshaw & Culbertson, one of the largest and oldest law firms in the country. He can be reached at crobison@hinshawlaw.com. Amy Jensen is a senior employment attorney in the firm's Los Angeles office and she can be reached at ajensen@hinshawlaw.com.

Featured Free Resource:
Cost Per Hire Calculator
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB01
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Compensation/Wage-Garnishment/How-to-Calculate-a-Priority-Garnishment-for-an-Emp/