1. What is Federal Wage Garnishment?

Federal wage garnishment is a legal procedure where a portion of a person's earnings is withheld by their employer for the payment of a debt. The federal government sets limits on how much can be garnished from disposable earnings.

2. How Does the Calculator Work?

The calculator uses the federal wage garnishment formula:

Where:

• \( Disposable \) — Disposable income (after legally required deductions)
• \( MinWage \) — Current federal minimum wage per week

Explanation: The garnishment is the lesser of 25% of disposable income or the amount by which disposable income exceeds 30 times the minimum wage.

3. Importance of Garnishment Calculation

Details: Understanding garnishment limits helps both employers and employees comply with federal law while ensuring debt repayment without causing undue financial hardship.

4. Using the Calculator

Tips: Enter disposable income in dollars (after taxes and other required deductions) and the current federal minimum wage per week. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What counts as disposable income?
A: Disposable income is what remains after legally required deductions like federal, state, and local taxes, Social Security, unemployment insurance, and state employee retirement systems.

Q2: Are there different rules for child support or alimony?
A: Yes, child support and alimony garnishments have different limits (up to 50-60% of disposable income) and priority over other garnishments.

Q3: Can state laws provide more protection?
A: Some states have laws that further limit garnishment amounts, but federal law sets the maximum that can be garnished.

Q4: What if the calculation results in zero?
A: If disposable income is less than 30 times the minimum wage, no garnishment is allowed under federal law.

Q5: How often is the garnishment calculated?
A: Garnishment is typically calculated per pay period, using the current pay period's disposable income.