Garnishments and Involuntary Allotments

Transcription

1 Authoritative Sources: Department of Defense R, Vol. 3, Chapter 3 Department of Defense R, Vol. 7A, Chapter 40 Department of Defense R, Vol. 7A, Chapter 44 Department of Defense R, Vol. 7A, Chapter 50 JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 Business Process Standards: A business process standard was not directed by law or DoD policy. Business Rule Standards: Garnishments_and_Involuntary_Allotments_31_003_02 To support auditability, the military payroll system shall maintain a pay history by pay period showing the Garnishment payroll computation factors and results as follows: 1. Debt Collection Amount - The total amount actually computed and collected for a specific pay, allowance, debt, deduction, allotment, tax, etc. for the pay period 2. Debt Reason - Used for auditability, precedence of deduction and identifies the reason for the debt. See precedence of deduction for complete list; for example; a. Local, Emergency and Partial Payments b. Advance Payment for Permanent Change of Station c. Advance of Pay and Allowances d. Advance for Assignment of 1 year or more to Imminent Danger Pay Zone e. Advance Pay When Ordered to Indoctrination Center f. Advance of Basic Allowance for Subsistence g. Advance Pay Upon Evacuation of Members or Dependents h. Advance of Allotment(s) to Dependents i. Advance Pay Members of the Armed Forces Health Professions Scholarship Program on Active Duty j. Advance Pay for Senior Reserve Officer Training Corps (SROTC) Cadets and Midshipmen Ordered to Field Training or Practice Cruises k. Advance of Overseas Housing Allowance l. Advance of Basic Allowance for Housing m. Overpayment of Pay and Allowances n. Telephone Charges o. Commissary p. Commercial Debt q. Dishonored Checks r. Bankruptcy s. Tax Levy t. BAS Meal Collection u. Garnishments, Statutory Allotments for Child or Spousal Support and Statutory Allotments for Other Than Child or Spousal Support 3. Debt Remaining Balance - The remaining debt balance of the debt. Calculated based on the total debt amount minus the monthly collections Page 1 of 10

2 4. Debt Repayment Begin Date - The start date used to determine the member's eligibility for (1) pay, allowances, bonuses, debts and deductions, or (2) the member's election for tax withholding, allotments, addresses, EFT, etc. 5. Debt Repayment End Date - The end date used to determine the member's eligibility for (1) pay, allowances, bonuses, debts and deductions, or (2) the member's election for tax withholding, allotments, TSP, mailing addresses, EFT, etc. 6. Debt Scheduled Collection Amount - The amount scheduled to be deducted from the military member's pay. The actual debt collection amount is based on payroll computation and member's Gross Pay. 7. Debt Scheduled Percentage Rate - The percentage of disposable pay scheduled to be deducted from the military member's disposal pay. 8. Debt Status - Used to support debt processing and identifies if debt collection is required for the current pay period: a. Active Payroll Collection b. Pending member's due process (suspended) c. Remission Action (suspended) d. Rebutted Action (suspended) e. Waiver Action (suspended) f. Cancelled g. Inactive member Separated h. Combat Hospitalization (suspended) 9. Debt Total Amount - The total amount of the debt 10. Debt Type - Used to support debt processing and identifies if debt collection is voluntary or involuntary 11. Duty Status - Member Duty Status captures the state of a DoD Military Service member relevant to his or her availability for duty; (i.e. confinement, separated, deceased, Unauthorized Absence, desertion, excess leave, etc.). The member's duty status is used with the Tour Pay Type to determine if the member is authorized pay and allowances for such duty status and the number of days payable 12. Garnishment Case ID Number - Case Number represents the number assigned by the court or an account number assigned by the creditor. This number must be reflected on the check and/or advice of payment. This field is modifiable by a modify transaction on the IGS garnishment request file. 13. Garnishment Date of Service - The date in which DFAS has received the garnishment action for processing. It is used to determine the order of precedence when a member has multiple garnishments with the same Garnishment Transaction Code type. 14. Garnishment FIPS Code - The Federal Information Processing Standard (FIPS) Code refers to the child support office or agency that will receive the electronic payment. 15. Garnishment Not-to-Exceed Percentage Rate - The statutory percentage limit of disposal earnings for a Garnishments, Bankruptcy, Statutory Allotments for Child or Spousal Support, Tax Levy and Statutory Allotments for Other Than Child or Spousal Support 16. Garnishment Reason - The code used by the Integrated Garnishment System (IGS) to identify the type of garnishment. The transaction code is used on the inbound Garnishment Request File (GRF), the outbound Change Disposition File and the outbound Continuing Disposition File. 01 = Child Support 02 = Child Support Arrearages 04 = Alimony Arrearages 08 = Military Commercial Debt Allotment 12 = Attorney Fees 13 = Bankruptcy 14 = Statutory Allotment 15 = Statutory Allotment Arrears 16 = Interest 17. Payroll Calendar Date - Used to identify the pay period the entitlement or deduction was computed to determine the member's gross or net pay for the pay period. For example: BAH With Dependent Rate is processed on April 29, 2011 with effective date April 25, The transaction was input after the cutoff date for the end-of-month April 2011 pay period; therefore, monies were computed in the mid-month May 2001 pay period. The Payroll Calendar Date is May 15, Note: Any date can be used as long as the date is unique and identifies a specific pay period. In this example, May 15, 2011 is used to identify the mid-month Page 2 of 10

3 May 2011 pay period (May 1, 2011 to May 15, 2011) and May 31, 2011 is used to identify the end-of-month May 2011 pay period (May 16, 2011 to May 31, 2011). 18. Recipient Account Number - Financial Institution Depositor Account Number is the identification number of a specific account, assigned by a financial institution, designated for electronic funds transfer (EFT) of a person s Federal wage, salary, allotments and garnishments. 19. Recipient Account Type - The specific type of account (i.e., checking or savings) the military member holds with a financial institution designated for electronic funds transfer (EFT) 20. Recipient Credit Line - The total amount of available credit that a member has open with a recipient. 21. Recipient Identification Code - Short Code used in transaction processing to derive the recipients information such as name, address, Routing Transit Number, account number, account type, account format, point of contact, etc. A Recipient ID Code could be a financial institution, government agency, non-government agency, commercial agency, Line of Accounting, State Child Support Agency, court, etc. 22. Tour Pay Type - The tour pay type in conjunction with the member's Duty Status used to determine the number of days the military member is authorized pay and allowances for the tour period and if the member is due pay and/allowance during a tour period. For example, drill tour, short tour and long tour. Department of Defense R, Vol. 7A, Chapter 50 JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 CHRIS: DoD Military Pay Deduction Rate Type Financial Institution Depositor Account Number Financial Institution Depositor Account Type Member Advance Pay Repayment Amount Member Debt Remission Determination Amount Member Debt Repayment Determination Amount Member Debt Type Member Discounted Meal Collection Amount Member Duty Status Member Repayment Payment Amount Member Repayment Payment Start Date Member Repayment Payment Stop Date Member Reserve Component Active Duty Type Garnishments_and_Involuntary_Allotments_31_003_03 The military payroll system shall allow the Debt Total Amount for Garnishments, Statutory Allotments for Child and Spousal Support and Involuntary Allotments for Other than Child and/or Spousal Support to be prorated and collected in installment payments each pay period. Department of Defense R, Vol. 7A, Chapter 44 Department of Defense R, Vol. 7A, Chapter 50 Garnishments_and_Involuntary_Allotments_31_003_04 The military payroll system shall compute disposable earnings for Garnishments Department of Defense R, Vol. 7A, Chapter 40 Garnishments_and_Involuntary_Allotments_31_003_04_01 For garnishments, the military payroll system shall use the following pays and bonuses when computing disposable earnings: 1. Basic pay (including Military Service academy cadet, academy officials, and midshipmen pay), but Page 3 of 10

4 excluding reduction for educational benefits under the New G.I. Bill. 2. Special pay (including enlistment and reenlistment bonuses). 3. Incentive pay. 4. Accrued leave payments (basic pay portion only). 5. Readjustment pay. 6. Severance pay (including disability severance pay). 7. Lump-Sum Reserve bonus. 8. Inactive duty training pay. 9. Separation pay, Voluntary Separation Incentive (VSI), Special Separation Benefit (SSB), Reservists Special Separation Pay (RSSP), and Reservists Involuntary Separation Pay (RISP). Department of Defense R, Vol. 7A, Chapter 40 Garnishments_and_Involuntary_Allotments_31_003_04_02 For garnishments, the military payroll system shall not use the following pay and allowances when computing disposable earnings: 1. Basic allowance for subsistence. 2. Basic allowance for housing. 3. Family separation allowance. 4. Station allowances. 5. Clothing allowances-enlisted. 6. Uniform allowances-officer. 7. Personal money allowance. 8. Discharge gratuity. 9 Position pay (Navy only). 10. Reserve Officer Training Corps subsistence allowance. 11. Death gratuity. 12. Allowance for recruiting expenses. 13. Travel and transportation allowances. 14. Armed Forces Health Professions Scholarship Program monthly stipend. Garnishments_and_Involuntary_Allotments_31_003_04_03 For garnishments, the military pay system shall deduct the following deductions when computing disposable earnings: 1. Amounts withheld in payment of debts owed to the United States, except that an indebtedness based on a levy for income tax under 26 U.S.C shall not be excluded in complying with legal process for the support of minor children if the legal process was entered prior to the date of the levy. 2. Regular Federal income tax withholding (FITW) and State income tax withholding (SITW): a. When required or authorized by law. B. When amounts withheld are not greater than would be the case if the individual claimed all dependents to which he/she were entitled. C. A deduction for additional FITW is authorized when the individual presents evidence of a tax obligation which supports the additional withholding. 3. Federal Insurance Contribution Act (FICA) tax. 4. Armed Services Retirement Homes. 5. Servicemen s Group Life Insurance premiums. 6. Retired Serviceman s Family Protection Plan premiums. 7. Survivor Benefit Plan premiums. 8. Thrift Savings Plan contributions. 9. Other amounts required by law to be deducted (e.g., fines and forfeitures ordered by a court-martial or by a commanding officer). Page 4 of 10

5 Garnishments_and_Involuntary_Allotments_31_003_05 The military payroll system shall limit the garnishment deduction for each pay period to the Garnishment Not-to-Exceed Percentage Rate as follows: 1. Fifty percent of disposable earnings if the member supporting for a spouse or dependent child 2. Sixty percent if the member concerned is not supporting a spouse or dependent child. 3. Regardless of the above limitations, an additional 5 percent of the member's disposable earnings shall be withheld when the notice states that the total amount of the member's support payments is 12 or more weeks in arrears. Garnishments_and_Involuntary_Allotments_31_003_06 The military payroll system shall limit disposable earnings for Statutory Allotments for Child and Spousal Support Garnishments_and_Involuntary_Allotments_31_003_06_01 For Statutory Allotments for Child and Spousal Support, if the member is assigned within the continental United States, the military payroll system shall use the following pay and allowances when computing disposable earnings: 1. Basic pay (including Military Service academy cadet and midshipmen pay). 2. Basic allowance for housing for members with dependents, and for members without dependents in the grade of E-7 or higher. 3. Basic allowance for subsistence for commissioned and warrant officers. 4. Career sea pay. 5. Diving pay. 6. Flying pay (all crew members). 7. Proficiency pay or special duty assignment pay. 8. Special pay for medical, dental, optometry, and veterinary officers. 9. Submarine pay. Garnishments_and_Involuntary_Allotments_31_003_06_02 For Statutory Allotments for Child and Spousal Support, if the member is assigned outside the continental United States, the military payroll system shall also include the following pay and allowances when computing disposable earning: 1. Family separation allowance (FSA-R only). 2. Hardship duty pay - location. 3. Special pay for duty subject to hostile fire and imminent danger (applies only to members permanently assigned in a designated area). 4. Special pay for overseas extensions. 5. Overseas housing allowance. 6. Cost-of-living allowance. Page 5 of 10

6 Garnishments_and_Involuntary_Allotments_31_003_06_03 For Statutory Allotments for Child and Spousal Support, the military payroll system shall deduct the following deductions when computing disposable earnings: 1. Amounts the member owes the United States. 2. Deductions for the Armed Forces Retirement Home. 3. Fines and forfeitures. 4. Federal and state employment and income taxes to the extent that the amount deducted is consistent with the member s tax liability. 5. Deductions for Servicemembers Group Life Insurance. 6. Advances of pay the member received before the date the designated official received notice of the support allotment. (In computing future advance pay requests, deduct the amount of the allotment required by law. See Chapter 32, subparagraph D of this volume.) 7. Amount of salary offset for travel charge card debt. 8. Other amounts required by law to be deducted. Garnishments_and_Involuntary_Allotments_31_003_07 The military payroll system shall limit the Statutory Allotments for Child and Spousal Support deduction for each pay period to the Garnishment Not-to-Exceed Percentage Rate as follows: 1. Fifty percent of the member s disposable earnings for any month in which the member asserts by affidavit or other acceptable evidence that he or she is supporting a spouse, dependent child, or both, other than a party in the support order. 2. Sixty percent of the member's disposable earnings for any month in which the member fails to assert by affidavit or other acceptable evidence that he or she is supporting a spouse, dependent child, or both. 3. Regardless of the above limitations, an additional 5 percent of the member's disposable earnings shall be withheld when the notice states that the total amount of the member's support payments is 12 or more weeks in arrears. Garnishments_and_Involuntary_Allotments_31_003_08 The military payroll system shall compute disposable earnings for Involuntary Allotments for Other Than Child and/or Spousal Support Garnishments_and_Involuntary_Allotments_31_003_08_01 For Involuntary Allotments for Other Than Child and/or Spousal Support, the military payroll system shall use the following pays and bonuses when computing disposable earnings: 1. Basic pay (excluding the reduction for education benefits under 38 U.S.C (New GI Bill). 2. Special pay, to include: a. Health care professionals (Including optometrists, dental officers, psychologists, and nonphysician health care providers, registered nurses, nurse anesthetists, nurse corps officers, and medical officers). b. Veterinarians. c. Diving duty. Page 6 of 10

7 d. Foreign duty. e. Career sea pay. f. Responsibility pay. g. International military headquarters. h. Proficiency pay and special duty assignment pay for enlisted members. i. Reenlistment bonus. j. Enlistment bonus. k. Prior service enlistment bonus. l. Hostile fire or imminent danger pay. m. Nuclear-qualified officers extending period of active duty. n. Nuclear-trained and qualified enlisted members. o. Nuclear career accession bonus. p. Nuclear career annual incentive bonus. q. Enlisted members extending duty at designated overseas locations. r. Foreign language proficiency pay. s. Officers in critical acquisition positions extending period of active duty. t. Multi Year Special Pay. u. Aviation Retention Bonus. v. Continuation Pay for Engineering & Scientific Career. w. Selective Reenlistment Bonus. 3. Incentive pay, including: a. Hazardous duty. b. Aviation career. c. Submarine duty. 4. Accrued leave payments (basic pay portion only). 5. Readjustment pay. 6. Severance pay, including disability severance pay. Garnishments_and_Involuntary_Allotments_31_003_08_02 For Involuntary Allotments for Other Than Child and/or Spousal Support, the military pay system shall deduct the following deductions when computing disposable earnings: 1. Separation pay, VSI and SSB 2. Allowances paid under Titles 10 and 37 of the United States Code 3. Other reimbursements or allowances for expenses incurred in connection with duty in the Military Service 4. Federal and state income tax withholding (amount is limited to that which is necessary to fulfill the member's tax liability). 5. FICA tax. 6. Armed Forces Retirement Home. 7. Servicemen s Group Life Insurance. 8. Indebtedness to the United States (including tax levies). 9. Fines and forfeitures ordered by a court-martial or a commanding officer. 10. Amounts otherwise required by law to be deducted from a member s pay (except payments under 42 U.S.C. 659, and 665). Garnishments_and_Involuntary_Allotments_31_003_09 The military payroll system shall limit the Involuntary Allotments for Other Than Child and/or Spousal Support deduction for each pay period to the Garnishment Not-to-Exceed Percentage Rate as follows: 1. The involuntary allotment shall not exceed the lesser of 25 percent of a member s pay subject to involuntary allotment or the maximum percentage of pay subject to garnishment proceedings under the Page 7 of 10

8 applicable state law. 2. If the member s pay is subject to a garnishment or statutory allotment for spousal and child support, in addition to the involuntary allotment application, then the combined amounts deducted from the member's pay shall not exceed the lesser of 25 percent of a member s pay subject to involuntary allotment or the maximum percentage of pay subject to garnishment proceedings (see paragraph ) under the applicable state law. If the maximum percentage allowed for involuntary allotments would be exceeded by both deductions, then garnishments and statutory allotments for spousal and child support take priority over the involuntary allotment. Garnishments_and_Involuntary_Allotments_31_003_10 The military pay system shall compute the Garnishments Debt Collection Amount as follows: 1. Compute the member's Garnishment disposal earnings 2. Compute the Scheduled Debt Collection Amount for the pay period a. Use the Debt Scheduled Collection Amount, or b. Multiply the Debt Scheduled Percentage Rate times the Garnishment disposal earnings 3. Determine the Maximum Allowable Collection Amount for the pay period by multiplying the Garnishment Not-to-Exceed Percentage Rate times the Garnishment disposal earnings 4. Compare the Scheduled Debt Collection Amount from step 2 to the Maximum Allowable Collection Amount from step 3. Use the lesser amount 5. If the member has insufficient funds to pay the Garnishments Debt Collection Amount, the collect the maximum amount possible Garnishments_and_Involuntary_Allotments_31_003_11 The military pay system shall compute the Statutory Allotments for Child and Spousal Support Debt Collection Amount as follows: 1. Compute the member's Statutory Allotments for Child and Spousal Support disposal earnings 2. Compute the Scheduled Debt Collection Amount for the pay period a. Use the Debt Scheduled Collection Amount, or b. Multiply the Debt Scheduled Percentage Rate times the Statutory Allotments for Child and Spousal Support disposal earnings 3. Determine the Maximum Allowable Collection Amount for the pay period by multiplying the Garnishment Not-to-Exceed Percentage Rate times the Statutory Allotments for Child and Spousal Support disposal earnings 4. Compare the Scheduled Debt Collection Amount from step 2 to the Maximum Allowable Collection Amount from step 3. Use the lesser amount 5. If the member has insufficient funds to pay the Statutory Allotments for Child and Spousal Support Debt Collection Amount, the collect the maximum amount possible Garnishments_and_Involuntary_Allotments_31_003_12 The military pay system shall compute the Involuntary Allotments for Other Than Child and/or Spousal Support Debt Collection Amount as follows: 1. Compute the member's Involuntary Allotments Other Than for Child and/or Spousal Support disposal earnings 2. Compute the Scheduled Debt Collection Amount for the pay period a. Use the Debt Scheduled Collection Amount, or Page 8 of 10

9 b. Multiply the Debt Scheduled Percentage Rate times the Involuntary Allotments Other Than for Child and/or Spousal Support disposal earnings 3. Determine the Maximum Allowable Collection Amount for the pay period by multiplying the Garnishment Not-to-Exceed Percentage Rate times the Involuntary Allotments Other Than for Child and/or Spousal Support disposal earnings 4. Compare the Scheduled Debt Collection Amount from step 2 to the Maximum Allowable Collection Amount from step 3. Use the lesser amount 5. If the member has insufficient funds to pay the Involuntary Allotments Other Than for Child and/or Spousal Support Debt Collection Amount, the collect the maximum amount possible Appendix A: Common Human Resource Information Standards DoD Military Pay Deduction Rate Type DoD Military Pay Deduction Rate Type is the classification of a DoD military pay deduction rate. Financial Institution Depositor Account Number Financial Institution Depositor Account Number is the identification number of a specific account, assigned by a financial institution, designated for electronic funds transfer (EFT) of a person's federal wage, salary, or retirement payments. Financial Institution Depositor Account Type Financial Institution Depositor Account Type is the specific type of account a person holds with a financial institution designated for electronic funds transfer (EFT) of his/her federal wage, salary, or retirement payments. Member Advance Pay Repayment Amount Member Advance Pay Repayment Amount is the dollar amount of a payment made by the DoD Military Service member to a DoD Military Service towards the repayment of an advance payment. Member Debt Remission Determination Amount Member Debt Remission Determination Amount is the dollar amount of an indebtedness in which a DoD Military Service member is not required to return to the United States government. Member Debt Repayment Determination Amount Member Debt Repayment Determination Amount is the dollar amount of an indebtedness in which a DoD Military Service member is required to return to the United States government. Member Debt Type Member Debt Type is the classification of a DoD Military Service member s indebtedness to the United States government. Member Discounted Meal Collection Amount Member Discounted Meal Collection Amount is the dollar amount of an enlisted DoD Military Service member's pay account deduction for government-provided meals. Member Duty Status Member Duty Status is the classification assigned to a DoD Military Service member with regard to his/her availability for duty within an assigned organization. Member Repayment Payment Amount Member Repayment Payment Amount is the dollar amount of a DoD Military Service member s monthly repayment of indebtedness. Member Repayment Payment Start Date Member Repayment Payment Start Date is the calendar date on which a DoD Military Service member s payments for indebtedness begins. Member Repayment Payment Stop Date Page 9 of 10

10 Member Repayment Payment Stop Date is the calendar date on which a DoD Military Service member s payments for indebtedness ends. Member Reserve Component Active Duty Type Member Reserve Component Active Duty Type is the classification of an active duty period for which a Reserve Component DoD Military Service member performs. Page 10 of 10