Understanding Exemption Rules for a Garnishment
You must enter exemption rules for an employee when the government specifies exemption rules that must be adhered to when processing garnishments and child support wage attachments.
Use the Exemption Rules tab on the wage attachment form to capture all rules that determine exemption amounts for child support and garnishment wage attachments. These rules are used in conjunction with all existing functionality for wage attachments. These rules can be set up as a flat amount, a percentage, or a table method. When you use a table method, calculation tables store the upper limit, lower limit, and exemption rate for the individual garnishment or child support order. The exemption rules are stored in the F071074 table. The system enables you to:
Calculate exemption amounts based on a flat dollar amount.
Calculate exemption amounts based on a percentage of gross or net wages.
Calculate exemption amounts based on a range of gross or net wages.
Calculate exemptions based on a flat dollar amount in combination with a range of gross or net wages.
Calculate exemption amounts within multiple wage ranges.