WAGE ATTACHMENT Set-up and Examples
Establishing Wage Attachments in Set-Up From the Payroll Application, select Set-Up and then open Deductions. Click on the + button to add a wage attachment. The following page will be displayed. Page 2 of 32
Deduction Table Fields and their usage for Wage Attachment processing: Deduction Code Enter a unique deduction code Description Enter a description of the deduction Abbreviation Enter an abbreviation Pay Period Frequency From the drop down, select the frequency for this deduction Type From the drop down, select the type of deduction Indicator From the drop down, select the indicator Check box: This is a pretax deduction this should NOT be checked for wage attachments. Check box: This is a term life deduction this should NOT be checked for wage attachments. Check box: This is a condition of employment deduction this should only be checked if this deduction is a condition of employment deduction and should be considered as such when processing a tax levy. Amount Leave this amount blank when setting up the wage attachment Limit Leave this amount blank when setting up the wage attachment Priority Do not assign a priority when setting up the wage attachment Arrears From the drop down select the arrears option. Note that most garnishments would have arrears of No amount will be placed into arrears if there is insufficient funds. Tax Deferred Indicator Leave the tax deferred indicator blank Tax Profile Leave the tax profile blank Deduction Category Select Wage Attachment from the drop down Page 3 of 32
Establishing Wage Attachments for Employees From the Payroll Application, select Employees. Select the specific employee and from their payroll drop-down, select Wage attachments. Page 4 of 32
Employee Deduction page fields and their usage for Wage Attachment processing: Wage Attachment From the drop down, select the wage attachment to be assigned to this employee. Active Check this box to activate the wage attachment. Note that the system will not start withholding the garnishment until the start date. Pay Period Freq This will be displayed from the corresponding Deduction table entry Type This will be displayed from the corresponding Deduction table entry Indicator This will be displayed from the corresponding Deduction table entry Flag From the drop down select the type of wage attachment. This field is used to determine the priority and calculation formula. (See below for a chart of the flags and their associated categories.) Category This is system filled based on the flag assigned. Start Date Enter the start date of the wage attachment. This is required and determines the priority. End Date Enter the end date if this wage attachment has an assigned end date. Priority This will be determined during the payroll processing (validation and update phase) and the employee s record will be updated to reflect the correct priority. Any priority entered will be overlaid by the system generated priority. Maximum % Enter the maximum percentage for this wage attachment. Maximum percentage is used for support deductions and student loans. If no maximum percentage is entered for support orders, the system assumes 50%. If no maximum percentage is entered for student loans, the system assumes 10%. Enter the value to the right of the decimal (.50). If there are multiple support orders with different maximum percentages, the lowest maximum percentage will be used. Case Information Enter the information for this particular wage assignment. These fields are not used in the prioritization or calculation of the wage assignment. Amount/Pct Enter the fixed dollar amount or percentage amount for this withholding order. Limit Enter the limit if this wage assignment is an upper limit or declining balance deduction. Balance Do not enter a balance. The balance will be calculated and maintained by the system. Personal Ex Amt Enter the personal exemption amount. This is used for tax levies. Processing Fee Enter the processing fee associated with this wage assignment. Arrears Do not enter arrears. The arrears will be calculated and maintained based on the arrears indicator assigned to the wage assignment. WAGE ATTACHMENT FLAG CATEGORY Child support C 1 Child support arrears 1 1 Medical support M 1 Medical support arrears 2 1 Bankruptcy B 1 Page 5 of 32
Federal Tax Levy L 1 State Tax Levy S 2 Local Tax Levy T 2 Creditor Garnishment G 3 Federal Student Loan F 3 State Student Loan E 3 Federal Agency Debt D 3 Garnishment Override X 4 Prioritization of Wage Assignments Wage assignments are grouped by category and then within category they are prioritized. Category 1 Child support (C) and Federal Tax levies (L) are prioritized by start date and follow the first come first served rule. Bankruptcy (B) always has priority over Federal Tax Levy (generally tax levies stop when a bankruptcy order is received and the IRS is contacted). Bankruptcy only has priority over child support if the bankruptcy order is dated prior to 10/17/2005. Medical Support (M) is prioritized after child support followed by child support arrears (1) and then medical support arrears (2). Let s look at an example. Child support start date = 10/15/2004 Bankruptcy start date = 12/15/2004 Tax Levy start date = 08/01/2003 The priority is as follows; Bankruptcy priority 1 Tax Levy priority 2 Child Support priority 3 Bankruptcy is dated prior to 10/17/2005 so it has priority over child support. Tax Levy is dated prior to the child support so it has priority over the child support. Page 6 of 32
Category 2 State tax levies have priority over Local tax levies. If multiple state tax levies are served, they are prioritized by start date. If local tax levies are served, they are prioritized by start date. Category 3 Category 3 wage attachments are prioritized by start date. Calculation of Wage Attachments Child Support Order 1. Determine disposable wages a. Gross Wages Employee Taxes = Disposable Wages 2. Determine the maximum amount that can be withheld for child support. a. Disposable Wages * Maximum Percentage = Max Child Support Deduction 3. Compare the actual child support deduction to the Max Child Support Deduction allowed. 4. Subtract any wage attachments with a higher priority. 5. Subtract the child support deduction. Page 7 of 32
EXAMPLE Page 8 of 32
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 226.16 Wages: 901.17 901.17 901.17 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.30 68.94 68.94 27.63.00.81 33.94.00.00 439.22 Employee: Medicare Wages- 901.17 Medicare Taxes- 13.07 OASDI Wages- 901.17 OASDI Taxes- 55.87 Employer: Medicare Wages- 901.17 Medicare Taxes- 13.07 OASDI Wages- 901.17 OASDI Taxes- 55.87 Deds: UNION 15.00 UNFM 25.00 Wage Att: CHILD 399.22 Term Life- 1.17 ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 Child Supp Ded - CHILD Being Reduced Since The Supp Max 399.22 Has Been Reached 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES Gross ($900) Federal Tax ($103.30) FICA ($68.94) State W/H ($27.62) Local W/H ($33.94) SDI ($0.81) = 665.38 2. CHILD SUPPORT Calculate the maximum child support deduction Disposable wages * maximum percentage (default to 50%) $665.38 * 60% = $399.22 (This employee had 60% entered in his child support garnishment record) 3. Compare the two results 4. Subtract any bankruptcy order or tax levy with a higher priority Page 9 of 32
5. Calculate the child support based on the deduction set up. Child support max of $399.22 < $450.00 Child support = $399.22 Multiple Child Support Orders 1. Determine disposable wages a. Gross Wages Employee Taxes = Disposable Wages 2. Determine the maximum amount that can be withheld for child support. a. Disposable Wages * Maximum Percentage = Max Child Support Deduction 3. Calculate the total child support deduction amount a. Fixed dollar sum total of fixed dollar b. Percentage calculate what the dollar amount would be using disposable wages and sum the amounts together 4. Divide each support order amount by the total support order amount to get the percent for each order. 5. Calculate each child support order by taking it s percentage times the total $$ available for child support Page 10 of 32
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Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 226.16 Wages: 901.17 901.17 901.17 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.30 68.94 68.94 27.63.00.81 33.94.00.00 439.22 Employee: Medicare Wages- 901.17 Medicare Taxes- 13.07 OASDI Wages- 901.17 OASDI Taxes- 55.87 Employer: Medicare Wages- 901.17 Medicare Taxes- 13.07 OASDI Wages- 901.17 OASDI Taxes- 55.87 Deds: UNION 15.00 UNFM 25.00 Wage Att: CHILD 266.15 CSUP2 133.07 Term Life- 1.17 ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 Child Supp Ded - CHILD Being Prorated Since The Supp Max 399.22 Has Been Reached Child Supp Ded - CSUP2 Being Prorated Since The Supp Max 399.22 Has Been Reached 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES $900.00 $103.30 $68.94 - $27.63 - $33.94 - $.81= $665.38 2. Calculate maximum child support deduction Disposable wages * maximum percentage (default 50) $665.38 * 60% = $399.22 3. Subtract any bankruptcy order or tax levy with a higher priority Page 12 of 32
$665.38 0 = $665.38 4. Calculate the total child support deduction $450.00 + $225.00 = $675.00 5. Divide each support order amount by the total support order amount to get the prorated amount. $450 / $675 =.6666 $225 / $675 =.3333 6. Calculate each child support order by taking the percentage * the maximum child support deduction $399.22 *.6666 = $266.12 $399.22 *.3333 = $133.07 Sum together ($266.12 + $133.07 = $399.19) and adjust one order so that the total child support is reached ($399.22 $399.19 =.03) Add.03 to $266.12 = $266.15 Federal Tax Levy 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 2. Subtract all Bankruptcy and Child Support Orders with a higher priority from disposable wages 3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages 4. Subtract any condition of employment deductions regardless of start date 5. Subtract the personal exemption amount from disposable wages 6. The adjusted disposable wages represent the wages subject to the federal tax levy Page 13 of 32
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Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 The Deduction Amt For Garnishment LEVYFED Had To Be Reduced To Satisfy The Pers Exm Amt Disposable Pay = 665.64 Pers Exm Amt = 300.00 Total Vol Ded = 15.00 84.36 Will Not Go Into Arrears Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 275.00 Wages: 900.00 900.00 900.00 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.13 68.85 68.85 27.63.00.81 33.94.00.00 390.64 Employee: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Employer: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Deds: UNION 15.00 UNFM 25.00 Wage Att: LEVYFED 350.64 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES $900.00 $103.13 $68.85 - $27.63 - $33.94 - $.81= $665.64 2. Federal Tax Levy Subtract all Bankruptcy and Child Support Orders with a higher priority from disposable wages $665.64 $0 = $665.64 Page 16 of 32
3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages. $665.64 $0 = $665.64 4. Subtract any condition of employment deductions regardless of start date. $665.64 $15.00 = $650.64 5. Subtract the personal exemption amount from disposable wages. $650.64 $300.00 = $350.64 6. The adjusted disposable wages represent the wages subject to the federal tax levy. Page 17 of 32
Bankruptcy 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 2. Subtract all Child Support Orders with a higher priority from disposable wages 3. Subtract any bankruptcy exception deductions The remaining dollars are subject to bankruptcy Note you can reduce the net pay amount to zero Page 18 of 32
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 Bankruptcy Order garnishment of 2000.00 being reduced Because of maximum dollars subject of 665.64 UNION Deduction Of 15.00 Exceeds Pay The Deduction Will Not Be Taken 15.00 Not Going Into Arrears UNFM Deduction Of 25.00 Exceeds Pay The Deduction Will Not Be Taken 25.00 Going Into Arrears Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay -.00 Wages: 900.00 900.00 900.00 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.13 68.85 68.85 27.63.00.81 33.94.00.00 665.64 Employee: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Employer: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Wage Att: BANK 665.64 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES $900.00 $103.13 $68.85 - $27.63 - $33.94 - $0.81 = $665.64 2. Bankruptcy Subtract all Child Support Orders with a higher priority from disposable wages $665.64 $0 = $665.64 3. Subtract all Bankruptcy Exception deductions $665.64 $0 = $665.64 The remaining dollars are subject to bankruptcy. Note you can reduce the net pay amount to zero Page 19 of 32
State and Local Tax Levies 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 2. State and Local Tax Levy Subtract all wage attachments with a higher priority from disposable wages 3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages 4. Subtract any condition of employment deductions regardless of start date 5. Subtract the personal exemption amount from disposable wages 6. The adjusted disposable wages represent the wages subject to the state/local tax levy Page 20 of 32
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 The Deduction Amt For Garnishment LEVYLC Had To Be Reduced To Satisfy The Pers Exm Amt Disposable Pay = 665.64 Pers Exm Amt = 150.00 Total Vol Ded = 15.00 265.64 Will Not Go Into Arrears Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 125.00 Wages: 900.00 900.00 900.00 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.13 68.85 68.85 27.63.00.81 33.94.00.00 540.64 Employee: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Employer: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Deds: UNION 15.00 UNFM 25.00 Wage Att: LEVYST 350.00 LEVYLC 150.64 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES $900.00 $103.13 $68.85 - $27.63 - $33.94 - $0.81 = $665.64 2. State/Local Tax Levy Subtract all Orders with a higher priority from disposable wages $665.64 $0 = $665.64 Page 21 of 32
3. Subtract all miscellaneous deductions with a start date prior to the levy start date from disposable wages. $665.64 $0 = $665.64 4. Subtract any condition of employment deductions regardless of start date. $665.64 $15.00 = $650.64 5. Subtract the personal exemption amount from disposable wages. $650.64 $150.00 = $500.64 6. The adjusted disposable wages represent the wages subject to the federal tax levy. $500.64 $350.00 = $150.64 $150.64 is subject to the local levy Page 22 of 32
Creditor Garnishment (Federal Agency Debt follows the same calculation) 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 2. CREDITOR GARNISHMENTS Calculate maximum creditor garnishment deduction 3. Disposable wages * maximum percentage (default 25) 4. Subtract all wage attachments with a higher priority 5. Calculate the creditor garnishment based on the deduction set up Page 23 of 32
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 Garnishment CREDGARN Cannot Be Taken In Full Because Garnishment Maximum of 166.41 has been reached Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 459.23 Wages: 900.00 900.00 900.00 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.13 68.85 68.85 27.63.00.81 33.94.00.00 206.41 Employee: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Employer: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Deds: UNION 15.00 UNFM 25.00 Wage Att: CREDGARN 166.41 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 900 103.13 68.85-27.63-33.94-.81 = 665.64 40 * 5.85 = $234.00 665.64 234.00 = 431.64 2. CREDITOR GARNISHMENT Calculate maximum creditor garnishment deduction Page 24 of 32
3. Disposable wages * maximum percentage (default 25) 665.65 * 25% = 166.41 40 hrs * federal min wage rate 40 * 5.85 = $234.00 665.64 234.00 = 431.64 166.41 is the max creditor garnishment amount 4. Subtract any withholding orders with a higher priority 166.41 0 5. Calculate the creditor garnishment based on the deduction set up. Creditor garnishment is 200.00 Creditor garn max of 166.41 < $200.00 Creditor garn = 166.41 Page 25 of 32
Student Loans 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 2. FEDERAL AND STATE STUDENT LOANS Calculate maximum student loan deduction Disposable wages * maximum percentage (default 10) 3. Calculate the maximum wage subject to garnishments Disposable wages * 25% 4. Subtract from maximum wage subject to garnishment all wage attachments with a higher priority 5. Calculate the student loan based on the deduction set up Page 26 of 32
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 Garnishment FEDLOAN Cannot Be Taken In Full Because Garnishment Maximum of 166.41 has been reached. Student Loan garnishment of 166.41 being reduced Because of maximum dollars per loan of 133.13 Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 492.51 Wages: 900.00 900.00 900.00 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.13 68.85 68.85 27.63.00.81 33.94.00.00 173.13 Employee: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Employer: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Deds: UNION 15.00 UNFM 25.00 Wage Att: FEDLOAN 133.13 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 900 103.13 68.85-27.63-33.94-.81 = 665.64 2. STUDENT LOAN Calculate maximum creditor garnishment deduction Disposable wages * maximum percentage (default 25) 665.65 * 25% = 166.41 3. Subtract any withholding orders with a higher priority 166.41 0 4. Calculate the creditor garnishment based on the deduction set up 665.65 * 20% = 133.13 5. Creditor garn max of 133.13 < $350.00 Creditor garn = 133.13 Page 27 of 32
Garnishment X What is Garnishment Flag X? This is an override category meaning that no special calculations are done and more importantly no limits (such as 60% for child support or 25% for creditor garnishments are checked). Used for voluntary wage assignments or when employee agrees to pay over the maximum amount. Deducted after all category 1,2,and 3 and prior to miscellaneous deductions. Multiple Order Examples Example 1 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 2. Child support = 250.00 with 50% max 3. Creditor Garnishment #1 = 73.28 (start date = 3/16/2004) 4. Creditor Garnishment #2 = 156.99 (start date = 6/1/2005) Page 28 of 32
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 GarnishmentCREDGARNCannot Be Taken At All Because Garnishment Maximum of 166.41 has been reached. GarnishmentCREDGRN2Cannot Be Taken At All Because Garnishment Maximum of 166.41 has been reached Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 375.64 Wages: 900.00 900.00 900.00 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.13 68.85 68.85 27.63.00.81 33.94.00.00 290.00 Employee: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Employer: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Deds: UNION 15.00 UNFM 25.00 Wage Att: CHILD 250.00 1. Disposable Wages 900 (103.13 + 68.85 + 27.63 +.81 +33.94) = 665.64 2. Child Support 665.64 * 50% = 332.82 332.82 > 250.00 full child support of 250.00 is withheld 3. Creditor Garnishment #1 665.64 * 25% = 166.41 40 * 5.85 = 234.00 Page 29 of 32
Max subject to creditor garnishment is 166.31 4. Creditor Garnishment #2 166.41 250.00 = -83.59 No $$ is available for the creditor garnishment. Example 2 1. DISPOSABLE WAGES = GROSS EMPLOYEE TAXES 2. Child support = 75.00 with 50% max 3. Creditor Garnishment = 73.28 (start date = 3/16/2004) 4. Creditor Garnishment = 156.99 (start date = 6/1/2005) 5. Student Loan Garnishment Override = 200.00 Page 30 of 32
Here is what will appear on the Wage and Tax Analysis and Payroll Edit/Validation reports: Federal Empl FICA Empr FICA State With State Unemp SDI/VDI Local with Fed Uemp Tax Deferred Deductions Check Date - 06/15/2006 Pay Period End - 06/15/2006 ACME SERV 000001068 Black Kenneth Gross Wages - 900.00 Net Pay - 259.23 Wages: 900.00 900.00 900.00 900.00.00 900.00 900.00.00.00 900.00 Taxes: 103.13 68.85 68.85 27.63.00.81 33.94.00.00 406.41 Employee: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Employer: Medicare Wages- 900.00 Medicare Taxes- 13.05 OASDI Wages- 900.00 OASDI Taxes- 55.80 Deds: UNION 15.00 UNFM 25.00 Wage Att: STLOAN 200.00 CHILD 75.00 CREDGARN 73.28 CREDGRN2 18.13 ACMESERV 000001068 Black Kenneth Co- ACME Dpt- SERV Empl-000001068 Earnings Hours Rate Gross Date Chk Pos/Job Shf Ded Gen SWT SUI LWT Id 01 86.66667 10.3846 900.00 06/15/2006 01 PROG1 Y PA PA PHNR Summary Totals: Earning Type Hours Amount 01 86.66667 900.00 Totals 86.66667 900.00 Tot Hrs Prc 86.66667 Tot Hrs Not Prc.00000 Garnishment CREDGRN2 Cannot Be Taken In Full Because Garnishment Maximum of 166.41 has been reached. Wage Attachment STLOAN Has No Priority Calculation may not be accurate. 1. Disposable Wages 900 (103.13 + 68.85 + 27.63 +.81 +33.94) = 665.64 2. Child Support 665.64 * 50% = 332.82 332.82 > 75.00 full child support of 75.00 is withheld 3. Creditor Garnishment #1 665.64 * 25% = 166.41 40 * 5.85 = 234.00 Max subject to creditor garnishment is 166.41 Page 31 of 32
166.31 75.00 = 91.31 1 st creditor garnishment to be withheld 91.31 73.28 = 18.13 4. $18.31 is available for the 2 nd creditor garnishment 5. Full $200.00 is taken for student loan because this was established as a category X garnishment. Page 32 of 32