1. Canadian Payroll Implementation Guide
  2. Canadian Wage Attachments

Canadian Wage Attachments

Each province and territory in Canada has its own legislation governing garnishments and support orders. The legislation requires all employers to comply with garnishment and support or maintenance orders. In most jurisdictions, compliance involves deducting the amount or percentage set out in the order and remitting it to the proper authority within a specified period of time.

For the protection of the debtor, every province has a law that specifies either a percentage of the employee's wages or a minimum amount that cannot be garnished. The various methods of calculating this exemption amount can be defined in the Wage Attachment application (P07107).

When you set up the exemption rules on the Wage Attachment application, you can also specify a minimum and maximum exemption amount. The minimum exemption amount is the minimum amount of pay that is exempt from the garnishment or child support, even when the exemption is calculated to a lower amount. The maximum exemption amount is the maximum amount of pay that is exempt from the garnishment or child support even when the exemption is calculated to a higher amount. You cannot specify a minimum or maximum exemption amount if you are using Exemption Method1, but it can be used for all other methods. When you enter a minimum or maximum exemption amount, the system calculated the exemption first, then applies the minimum or maximum amount that you specify. These amounts are dictated by local governing authorities on the order for the garnishment.

You can calculate exemptions using any of these methods:

  • Flat dollar

  • Percent

  • Table method

    • E1: Single exemption range - $.

    • E2: Single exemption range - %.

    • E3: Progressive exemption range - %.

To accommodate the exemption amount calculations from the various provinces, two types of exemption tables can be defined. The first type of exemption table, a single range table (E1 or E2), calculates the exemption by determining the range in which the employee's wages fall. Based on the range in which the employee's wages fall, the exemption amount can be calculated using either a percentage amount or a flat dollar amount.

The second type of exemption table, a progressive table (E3), calculates the exemption amount for each row in which the employee's wages exceed the upper limit or fall within the upper and lower limits. Each row is calculated progressively and the sum of all rows equals the exemption amount.

See "Setting Up Tables for Wage Attachments" in the JD Edwards EnterpriseOne Applications Payroll Implementation Guide"Entering Wage Attachments for Employees" in the JD Edwards EnterpriseOne Applications Payroll Implementation Guide.