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)