Entering Exemption Rules for a Garnishment

Access the Wage Attachment Revisions form. Select the Exemption Rules tab.

Exemption Rule

Enter a value from the UDC table 07/XR to specify the exemption rule for calculating garnishment. Values are:

Blank: Apply exemption after calculation

When you leave this field blank, the system calculates additional exemption on the wage and then applies the exemption amount.

1: Apply exemption before calculation

When you enter 1 in this field, the system applies the exemption amount to the gross wage and then calculates the additional exemption amount.

Exemption Method

Enter a value from UDC table 07/XM that specifies the method to calculate an exemption amount for a child support or garnishment wage attachment. Values are:

1: Flat dollar amount.

2: Percent of gross or net wages.

3: Use an exemption table from which the exemption amount is retrieved.

If you use exemption method 3 and enter an amount in the Exemption Amount field, the amount is defined as a flat dollar value and is added to the exemption amount that the system retrieves from the table.

4: Use an exemption table to retrieve the additional exemption amount after subtracting the exemption amount from the gross wage.

If you use exemption method 4 and enter an amount in the Exemption Amount field, the system first subtracts that amount from the gross wage, then calculates the exemption amount from the table, and then adds the exemption amount to the calculated exemption amount. This amount is the actual exemption amount. The following example illustrates this calculation:

Gross wage = $2000

Exemption Amount = $520

Additional exemption from the table is 70%

In this case, the system calculates the additional exemption on the amount derived by subtracting the exemption amount from the gross wage. The amount would be ($2000 - $520) = $1480.

Then the system calculates the additional exemption amount by this formula: (70% * $1480) = $1036.

The system derives the total exemption by this formula:

Exemption amount + Additional exemption amount ($520 + $1036) = $1556

The garnishment amount in this case would be $2000 - $1556, which is $444.

Note: To perform the garnishment calculation for Quebec, you must select exemption method 4 in conjunction with the wage attachment method E.

Exemption Amount

Enter the amount that the system uses to calculate child support or garnishment wage attachment. This can either be an amount or a percent, depending on the exemption method.

Minimum Exemption

Enter the minimum amount of pay that is exempt from the garnishment or child support wage attachment, even when the exemption calculates to a lower amount.

For example, an employee has a minimum exemption amount of 200$. If the employee's exemption calculates to a lower amount than 200$, the employee would still have 200$ exempt from the child support or garnishment wage attachment.

Note: You cannot use minimum exemption with exemption method 1. If you enter an amount in this field, the system applies this rule after calculating the exemption.

Table Code

Designate the table code to be accessed in the F069026 table.

Note: You can use a table code only with exemption methods 3 and 4. This field must be numeric.

Maximum Exemption

Enter the maximum amount of pay that is exempt from the garnishment or child support wage attachment, even when the exemption calculates to a higher amount.

For example, an employee has a maximum exemption amount of 200$. If the employee's exemption calculates to a higher amount than 200$, the employee would still have 200$ exempt from the child support or garnishment wage attachment.