Garnishment rules

Garnishment rules determine how Payroll calculates:

• The portion of employee pay that is exempt from garnishments

• The garnishment amount

• Fees

• Multiple garnishments

Garnishment rules vary by locale. For this reason, you establish garnishment rules for each governing tax authority from which you receive a garnishment order. You further define garnishment rules with a category, type, formula, and additional options, such as family and dependent information.

Garnishment Rules are:

• Governed by federal, state or province, county, and city laws that determine formulas for calculating the amount of exempt wages

• Grouped by category and type

• Defined using a Garnishment Formula

For the U.S., pre-defined Federal garnishment rules are delivered as are garnishment formulas. Technically, you can change federal garnishment rules; however, it is recommended that you do not change the rules unless there is a change in federal law regarding garnishments. You must build state or local garnishment rules using the formulas delivered.

Due to the complexity of Canada garnishments, there are no predefined garnishment rules or formulas.