Have you ever wondered how wage garnishment is figured? The State of Arizona has all the documents available at a self service section of their website. By clicking on the link you can get the entire packet, or take a look at the various documents within the packet.
This example is taken from the court document called a Non-Exempt Earnings Statement. If your employer receives one of these, they are required by law to garnish your wages. I assume not all garnishments are calculated the same way, so realize that the following is only one example.
Mr. Jones works 40 hours a week, makes $10.00 an hour, and lives in Arizona, where the mandatory taxes are social security, medicare, federal and state. Minimum wage is currently $7.25. Take the amount you make, subtract the mandatory taxes (social security, medicare, federal, state) to come up with your first subtotal.
| Line | Description | Amount |
|---|---|---|
| 1a | Gross Earnings per pay period | $400.00 |
| 1b | Disposable Earnings (Gross Earnings less deductions required by law) | $307.30 |
| 1c | Enter 25% of line 1b | $76.83 |
| 2 | The current federal minimum wage (Currently $7.25/hour). Enter one of the following, using an appropriate pay period: weeky (30 x minimum wage), biweekly (60 x minimum wage), semimonthly (65 x minimum wage), monthly (130 x minimum wage). | $225.00 |
| 3 | Subtract line 2 from 1b and enter | $82.30 |
| 4 | Enter the amount from line 1c or line 3, whichever is smaller | $76.83 |
| 5 | Enter the amount withheld from the Judgment Debtor's earnings because of a court ordered Assignment for the Support of a Person (child support, spousal maintenance) or a Garnishment of Levy for the Collection of Taxes. | $0.00 |
| 6 | Subtract line 5 from line 4 and enter here. THIS IS THE AMOUNT OF NONEXEMPT EARNINGS YOU ARE TO WITHHOLD AND FORWARD TO THE JUDGMENT CREDITOR WITH THIS STATEMENT | $76.83 |
Once you have that subtotal, multiply it by 25%.
Next you’re going to take what amounts to 75% of the hours you are paid for, and multiply by minimum wage. For example, if you work 40 hours a week, 75% of 40 hours is 30 hours. If you are paid every two weeks, you’ll be taking 80 hours multiplying by 75% to come up with 60 hours.
Now subtract the minimum wage amount (E) from your net wages after mandatory deductions (C).
Look at D and F and take whichever amount is smaller.
If you are already paying for a previous judgment, or are paying child support, subtract this amount.
The resulting figure is the amount your employer is required by law to remove (garnish) from your paycheck.
Here are a couple of other examples:
Mr. Smith makes $19.25 per hour, working 40 hours a week.
| Line | Description | Amount |
|---|---|---|
| 1a | Gross Earnings per pay period | $770.00 |
| 1b | Disposable Earnings (Gross Earnings less deductions required by law) | $591.55 |
| 1c | Enter 25% of line 1b | $147.89 |
| 2 | The current federal minimum wage (Currently $7.25/hour). Enter one of the following, using an appropriate pay period: weeky (30 x minimum wage), biweekly (60 x minimum wage), semimonthly (65 x minimum wage), monthly (130 x minimum wage). | $225.00 |
| 3 | Subtract line 2 from 1b and enter | $366.55 |
| 4 | Enter the amount from line 1c or line 3, whichever is smaller | $147.89 |
| 5 | Enter the amount withheld from the Judgment Debtor's earnings because of a court ordered Assignment for the Support of a Person (child support, spousal maintenance) or a Garnishment of Levy for the Collection of Taxes. | $0.00 |
| 6 | Subtract line 5 from line 4 and enter here. THIS IS THE AMOUNT OF NONEXEMPT EARNINGS YOU ARE TO WITHHOLD AND FORWARD TO THE JUDGMENT CREDITOR WITH THIS STATEMENT | $147.89 |
Mr. Magoo makes $15.00 per hour, and is paid semi-monthly (two times each month).
| Line | Description | Amount |
|---|---|---|
| 1a | Gross Earnings per pay period | $1300.00 |
| 1b | Disposable Earnings (Gross Earnings less deductions required by law) | $998.72 |
| 1c | Enter 25% of line 1b | $249.68 |
| 2 | The current federal minimum wage (Currently $7.25/hour). Enter one of the following, using an appropriate pay period: weeky (30 x minimum wage), biweekly (60 x minimum wage), semimonthly (65 x minimum wage), monthly (130 x minimum wage). | $487.50 |
| 3 | Subtract line 2 from 1b and enter | $511.22 |
| 4 | Enter the amount from line 1c or line 3, whichever is smaller | $249.68 |
| 5 | Enter the amount withheld from the Judgment Debtor's earnings because of a court ordered Assignment for the Support of a Person (child support, spousal maintenance) or a Garnishment of Levy for the Collection of Taxes. | $0.00 |
| 6 | Subtract line 5 from line 4 and enter here. THIS IS THE AMOUNT OF NONEXEMPT EARNINGS YOU ARE TO WITHHOLD AND FORWARD TO THE JUDGMENT CREDITOR WITH THIS STATEMENT | $249.68 |
This post is simply for the interest of sharing information regarding garnishment, I am not a professional. Please note that although the State of Arizona has official paperwork available through self service portals, it is still advised that you consult with a professional in this field.
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