Example: Exemption Rules Calculations
Suppose the employer receives a child support order for an employee who lives in Quebec. The child support order is in the amount of 500.00 CAD per month. The employee's monthly disposable wage equals 1,200.00 CAD. The system calculates the exemption amount as follows:
Flat dollar calculation.
If you use the flat dollar calculation and specify an amount of 1,000.00 , the system subtracts the 1,000.00 exemption from the 1,200 disposable wage and calculates the payment amount on the child support order as 200.00.
Percent calculation.
If you use the percent calculation and specify 50 percent, the exemption amount is 50 percent of 1,200.00 or 600.00. The system subtracts the 600.00 exemption from the 1,200.00 disposable wage and calculates the payment amount on the child support order as 600.00.
Table method calculation - E1.
If you use the table method calculation and specify a single exemption range - $, you might set up ranges as shown in this table:
Lower Limit
Upper Limit
Amt./Rate
0.00
499.99
200.00
500.00
999.99
400.00
1,000
1499.99
600.00
1,500
1,999.99
800.00
The employee's disposable wage falls within the 1,000-1,499.99 range, so the exemption amount is 600.00. The system subtracts the 600.00 exemption from the 1,200.00 disposable wage and calculates the payment amount on the child support order as 600.00.
Table method calculation - E2.
If you use the table method calculation and specify a single exemption range - %, you might set up ranges as shown in this table:
Lower Limit
Upper Limit
Amt./Rate
0.00
499.99
50.00
500.00
999.99
40.00
1,000
1499.99
30.00
1,500
1,999.99
20.00
The employee's disposable wage falls within the 1,000-1,499.99 range, so the exemption amount is 30 percent of 1,200.00 or 360.00. The system subtracts the 360.00 exemption from the 1,200.00 disposable wage and calculates the payment amount on the child support order as 840.00.
Table method calculation - E3.
If you use the table method calculation and specify a progressive exemption range - %, you might set up ranges as shown in this table:
Lower Limit
Upper Limit
Amt./Rate
0.00
499.99
50.00
500.00
999.99
40.00
1,000
1,499.99
30.00
1,500
1,999.99
20.00
The system calculates a 50 percent exemption on the first 499.99 of the employee's disposable wage for an amount of 250.00; a 40 percent exemption on the disposable wage between 500.00 and 999.99 for an amount of 400.00; and a 30 percent exemption on the disposable wage between 1,000.00 and 1,499.99 (which in this case is 200.00) for an amount of 60.00. The system then adds these exemption amounts (200.00 + 400.00 + 60.00) for a total exemption amount of 660.00, subtracts the 660.00 exemption from the 1,200.00 disposable wage, and calculates the payment amount on the child support order as 540.00.