Multiple Garnishments in Multiple Categories

If there are multiple garnishments in multiple categories, Payroll uses the priority assigned to the garnishment deduction or the employee garnishment to determine the order in which it takes garnishments. Garnishment priorities

In the United States, Payroll also uses federal garnishment limitations to determine the processing order of garnishment. U.S. Federal limitations to garnishments

In Canada, there are no federal limitations. Each type of order for each province can have a unique set of rules that dictates the amount exempt from seizure and the amount that can be taken to satisfy the garnishment order.

To determine allowable garnishment deductions, Payroll:

  1. Calculates the garnishment order with the highest priority.
  2. Calculates what percentage of the employee's available wages was withheld for the first order by taking the amount withheld, divided by the available wages.
  3. Determines for the order with the next highest priority what percentage of available wages can be garnished.

    A deduction for this garnishment is limited to the difference between the percentages of available wages protected by the order less the percentage of available wages taken for the first order.

  4. Repeats step three for each subsequent order.

Example

The first garnishment taken for an employee protects 80% of income, so 20% of income is available wages for the garnishment. The garnishment uses 15% of the available wages. So, only 5% of available wages remains for any subsequent garnishments.