Garnishment Calculations
Examples of child support calculations using garnishment allocations.
The following are examples of calculating withholding amounts for two states within the Consumer Credit Protection Act (CCPA) limits; the first using fixed amounts and the second using both a percentage-based and a fixed amount.
Example #1 - Fixed Dollar Amount
The following is an example of calculating withholding amounts for two states when both orders are for fixed dollar amounts.
Employee's Gross Income: | $900/month |
State A: | $200/month |
State B: | $350/month |
Total Due: | $550/month |
Disposable Income: | $750/month |
Employee CCPA Limit: | 55% |
Distributable Income: | $412.50 (55% x $750) |
State | Calculation | Prorated Amount |
---|---|---|
A | 36% of total due ($200/$550) | $148.50 ($412.50 x .36) |
B | 64% of total due ($350/$550) | $264.00 ($412.50 x .64) |
Example #2 - Fixed Dollar Amount & Percentage Based:
The following is an example of calculating withholding amounts for two states when one order is percentage expressed and one order is a fixed dollar amount.
Employee's Gross Income: | $500.00/bi-weekly pay period |
State A: | 31% of gross income |
State B: | $150.00/bi-weekly pay period |
Total Due: | $305.00 ((31% x $500.00 =$155.00) + $150.00)) |
Disposable Income: | $450/bi-weekly pay period |
Employee's CCPA limit: | 65% |
Distributable Income: | $292.50 (65% x $450) |
State | Calculation | Prorated Amount |
---|---|---|
A | 51% of total due ($155/$305) | $149.17 ($292.50) x .51) |
B | 49% of total due ($150/$305) | $143.33 ($292.50 x .49) |