Example: Splitting a Wage Assignment Deduction between Families
George supports two families and has two wage assignments. The first wage assignment is 300.00 USD per pay period, and the second is 200.00 USD. However, the maximum percentage of the employee's disposable wages that must go toward all wage assignments is 65 percent, based on the minimum net pay that George is allowed. When George does not earn enough to pay both wage assignments, the amount available must be divided proportionately between the wage assignments.
This pay period, George has disposable wages of 500 USD. The system uses these calculations to determine George's wage assignment deductions for this pay period:
Amount |
Calculation |
---|---|
Amount available |
Disposable wage × percent = amount available for all wage assignments 500 × .65 = 325 |
First wage assignment percent |
First wage assignment ÷ total obligation = percentage of disposable wages for first wage assignment 300 ÷ 500 = .60 |
Second wage assignment percent |
Second wage assignment ÷ total obligation = percentage of disposable wages for second wage assignment 200 ÷ 500 = .40 |
First deduction |
Percent of disposable wages for first wage assignment × amount available for all wage assignments = amount deducted for first wage assignment .60 × 325 = 195 |
Second deduction |
Percent of disposable wages for second wage assignment × amount available for all wage assignments = amount deducted for second wage assignment .40 × 325 = 130 |