Garnishment Example–2 Garnishments and 4 Admin Fees Using Prorated Allocation with Limit 1

This employee has 2 Garnishments, each with 2 Admin Fees with the same priority level. The allocation is set to Prorate. The Garnishment Other Deduction Code was assigned to this employee 2 times, meaning there were 2 different court orders.

The Garnishment Limit is based on 50% of Disposable Earnings and includes 2 Admin Fees.

Click the Settings button to display the Deduction Settings and Garnishment Calculation Notes for the Garnishments and Admin Fees.

The Deduction Setting screen displays the information that was stored with the check record (at the time of the creation and/or recalculation). It also includes notes on the garnishment calculation. This is especially useful if you need to determine exactly how amounts were computed.

Double-click (or press Shift + F2) in the Garnishment Calculation Notes view the notes in Zoom mode. The system goes through a series of steps in garnishment calculations. Not all Steps are applicable to each Garnishment.

Garnishment #1 Calculation

Step 1 (Before Priority Group Allocations):

Gross: $492.00

Disposable Earnings: $419.87

Adjusted Disp Earn: $0.00

Min Per Check:

Max Per Check:

Garn Initial Calc Amount: $300.00

Dollar Fees: $5.00

Fee Percentages: 0.00%

Fees based on I.C.A.: $5.00

Initial Garn + Fees: $305.00

Initial Calc Amount w/o Rec Limit: $300.00

Limit 1: $209.94

Limit 2: None

Limit 3: None

Limit 4: None

Lowest Limit: $209.94

Garn + Fees before this Group: $0.00

Garn + Fees before this Garn, in this Group: $0.00

Amount Left For this Garn And Fees: $209.94

Step 2d (Pro Rated Allocation of Garn and Fee - above 'even' amount):

# Garns in Group: 2

Order Allocated: 1

Limits Hit for Group: Yes

Total G&F for Group: $209.94

Total G&F to allocate this Iteration: $209.94

Total Garns for Group Before Rec Limit: $550.00

Total Garns for Group Before Rec Limit this iteration: $550.00

Ratio: 54.55% ($114.51)

Amt Allocated: $114.51

Step 3b:

Limits altered Admin Fee calculations, and/or Garnishment was affected.

Add Fees after Limits: $5.00

Garnishment Amount: $109.51

Step 4:

Adjustment Amount: $0.00

Recurring Limit:

Cumulative:

Garnishment Amount: $109.51

Garnishment #1, Admin Fee # 1 Calculation

Step 2 (Allocation):

Limits Hit for Group: Yes

Garn and Fee Allocated: $114.51

Total $ Fees: $5.00

Total % Fees: 0.00%

New Garn Amt: $109.51

New Fee Amt: $2.00

Min Per Check:

Max Per Check:

Fee Amount: $2.00

Garnishment #1, Admin Fee #2 Calculation

Step 2 (Allocation):

Limits Hit for Group: Yes

Garn and Fee Allocated: $114.51

Total $ Fees: $5.00

Total % Fees: 0.00%

New Garn Amt: $109.51

New Fee Amt: $3.00

Min Per Check:

Max Per Check:

Fee Amount: $3.00

Garnishment #2 Calculation

Step 1 (Before Priority Group Allocations):

Gross: $492.00

Disposable Earnings: $419.87

Adjusted Disp Earn: $0.00

Min Per Check:

Max Per Check:

Garn Initial Calc Amount: $250.00

Dollar Fees: $5.00

Fee Percentages: 0.00%

Fees based on I.C.A.: $5.00

Initial Garn + Fees: $255.00

Initial Calc Amount w/o Rec Limit: $250.00

Limit 1: $209.94

Limit 2: None

Limit 3: None

Limit 4: None

Lowest Limit: $209.94

Garn + Fees before this Group: $0.00

Garn + Fees before this Garn, in this Group: $209.94

Amount Left For this Garn And Fees: $0.00

Step 2d (Pro Rated Allocation of Garn and Fee - above 'even' amount):

# Garns in Group: 2

Order Allocated: 2

Limits Hit for Group: Yes

Total G&F for Group: $209.94

Total G&F to allocate this Iteration: $209.94

Total Garns for Group Before Rec Limit: $550.00

Total Garns for Group Before Rec Limit this iteration: $550.00

Ratio: 45.45% ($95.43)

Amt Allocated: $95.43

Step 3b:

Limits altered Admin Fee calculations, and/or Garnishment was affected.

Add Fees after Limits: $5.00

Garnishment Amount: $90.43

Step 4:

Adjustment Amount: $0.00

Recurring Limit:

Cumulative:

Garnishment Amount: $90.43

Garnishment #2, Admin Fee # 1 Calculation

Step 2 (Allocation):

Limits Hit for Group: Yes

Garn and Fee Allocated: $95.43

Total $ Fees: $5.00

Total % Fees: 0.00%

New Garn Amt: $90.43

New Fee Amt: $2.00

Min Per Check:

Max Per Check:

Fee Amount: $2.00

Garnishment #2, Admin Fee # 2 Calculation

Step 2 (Allocation):

Limits Hit for Group: Yes

Garn and Fee Allocated: $95.43

Total $ Fees: $5.00

Total % Fees: 0.00%

New Garn Amt: $90.43

New Fee Amt: $3.00

Min Per Check:

Max Per Check:

Fee Amount: $3.00