What Kinds of Employee Wages does Payroll use for Garnishments?

U.S. Gross Wages

Payroll uses gross wages to calculate disposable income. Gross wages include all kinds of wages paid to an employee, such as regular pay, bonus pay, fringe benefits, third-party sick pay, and moving expenses.

U.S. Disposable Income

Payroll takes garnishments from disposable income. An employee's disposable income is equal to the employee's gross wages minus deductions allowed by state or federal law.

Canada Gross Wages

Gross wages for Canada garnishments are defined as all wages paid to the employee. Some provinces may require that add-to-net deductions, such as expense reimbursements, be used to calculate gross and net wages.

Canada Net Wages

Net wages for Canada garnishments are defined as gross wages less employee-paid statutory deductions for CPP, EI and Income Tax.

Some provinces may require that add to net deductions, such as expense reimbursements, be used to calculate gross and net wages.

Canada Available Wages

Available wages are those wages that are available for the garnishment. In some cases, Payroll calculates available wages as net wages less exempt wages. In other cases, the province dictates what is included in available wages.