Adp Wage Garnishment Calculator

ADP Wage Garnishment Calculator

Use this calculator to estimate the maximum amount that can be garnished from an employee's wages for general consumer credit debts under federal law (Title III of the Consumer Credit Protection Act).

Includes federal, state, local taxes, Social Security, and Medicare. Do NOT include voluntary deductions like health insurance or 401k.

Weekly Bi-weekly Semi-monthly Monthly

function calculateGarnishment() { var grossPay = parseFloat(document.getElementById('grossPay').value); var legallyRequiredDeductions = parseFloat(document.getElementById('legallyRequiredDeductions').value); var payPeriod = document.getElementById('payPeriod').value; var federalMinWage = parseFloat(document.getElementById('federalMinWage').value); var resultDiv = document.getElementById('result'); // Input validation if (isNaN(grossPay) || grossPay < 0) { resultDiv.innerHTML = 'Please enter a valid non-negative Gross Pay.'; return; } if (isNaN(legallyRequiredDeductions) || legallyRequiredDeductions < 0) { resultDiv.innerHTML = 'Please enter valid non-negative Legally Required Deductions.'; return; } if (isNaN(federalMinWage) || federalMinWage grossPay) { resultDiv.innerHTML = 'Legally Required Deductions cannot exceed Gross Pay.'; return; } // Step 1: Calculate Disposable Earnings var disposableEarnings = grossPay – legallyRequiredDeductions; // Step 2: Calculate 25% of Disposable Earnings var twentyFivePercentRule = disposableEarnings * 0.25; // Step 3: Determine the 30x Federal Minimum Wage Threshold based on pay period var minWageMultiplier; switch (payPeriod) { case 'weekly': minWageMultiplier = 30; break; case 'bi-weekly': minWageMultiplier = 60; break; case 'semi-monthly': minWageMultiplier = 65; // Approx 2.167 weeks * 30 break; case 'monthly': minWageMultiplier = 130; // Approx 4.333 weeks * 30 break; default: minWageMultiplier = 30; // Default to weekly if something goes wrong } var minWageThreshold = minWageMultiplier * federalMinWage; // Step 4: Calculate the amount by which disposable earnings exceed the 30x FMW threshold var disposableEarningsExceedingMinWage = disposableEarnings – minWageThreshold; // If disposable earnings are less than the threshold, this rule results in 0 garnishment var ruleTwoGarnishment = Math.max(0, disposableEarningsExceedingMinWage); // Step 5: The maximum garnishment is the lesser of the two rules var maxGarnishment = Math.min(twentyFivePercentRule, ruleTwoGarnishment); // Ensure garnishment is not negative (can happen if disposable earnings are very low) maxGarnishment = Math.max(0, maxGarnishment); // Display results var output = '

Detailed Breakdown:

'; output += 'Gross Pay: $' + grossPay.toFixed(2) + "; output += 'Legally Required Deductions: $' + legallyRequiredDeductions.toFixed(2) + "; output += 'Disposable Earnings: $' + disposableEarnings.toFixed(2) + "; output += '25% of Disposable Earnings: $' + twentyFivePercentRule.toFixed(2) + "; output += 'Federal Minimum Wage Threshold (' + minWageMultiplier + 'x FMW): $' + minWageThreshold.toFixed(2) + "; output += 'Disposable Earnings Exceeding Threshold: $' + disposableEarningsExceedingMinWage.toFixed(2) + "; output += 'Garnishment based on Rule 2 (Disposable Earnings – Threshold): $' + ruleTwoGarnishment.toFixed(2) + "; output += '

Maximum Allowable Garnishment: $' + maxGarnishment.toFixed(2) + '

'; resultDiv.innerHTML = output; } function clearForm() { document.getElementById('grossPay').value = '1000'; document.getElementById('legallyRequiredDeductions').value = '200'; document.getElementById('payPeriod').value = 'weekly'; document.getElementById('federalMinWage').value = '7.25'; document.getElementById('result').innerHTML = 'Enter values and click "Calculate Garnishment" to see the results.'; } .calculator-container { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; background-color: #f9f9f9; padding: 25px; border-radius: 10px; box-shadow: 0 4px 12px rgba(0, 0, 0, 0.1); max-width: 700px; margin: 30px auto; border: 1px solid #e0e0e0; } .calculator-container h2 { text-align: center; color: #333; margin-bottom: 20px; font-size: 1.8em; } .calculator-container p { color: #555; line-height: 1.6; margin-bottom: 15px; } .calc-input-group { margin-bottom: 18px; display: flex; flex-direction: column; } .calc-input-group label { margin-bottom: 8px; color: #333; font-weight: bold; font-size: 1.05em; } .calc-input-group input[type="number"], .calc-input-group select { padding: 12px; border: 1px solid #ccc; border-radius: 6px; font-size: 1em; width: 100%; box-sizing: border-box; transition: border-color 0.3s ease; } .calc-input-group input[type="number"]:focus, .calc-input-group select:focus { border-color: #007bff; outline: none; box-shadow: 0 0 5px rgba(0, 123, 255, 0.2); } .calc-input-group .description { font-size: 0.85em; color: #666; margin-top: 5px; margin-bottom: 5px; } .calculate-button, .clear-button { background-color: #007bff; color: white; padding: 12px 25px; border: none; border-radius: 6px; cursor: pointer; font-size: 1.1em; margin-top: 15px; transition: background-color 0.3s ease, transform 0.2s ease; width: auto; display: inline-block; margin-right: 10px; } .clear-button { background-color: #6c757d; } .calculate-button:hover { background-color: #0056b3; transform: translateY(-1px); } .clear-button:hover { background-color: #5a6268; transform: translateY(-1px); } .calculator-results { margin-top: 30px; padding: 20px; background-color: #e9f7ee; border: 1px solid #d4edda; border-radius: 8px; } .calculator-results h3 { color: #28a745; margin-top: 0; font-size: 1.5em; border-bottom: 1px solid #d4edda; padding-bottom: 10px; margin-bottom: 15px; } .calculator-results p { margin-bottom: 10px; color: #333; } .calculator-results p strong { color: #000; } .calculator-results .error { color: #dc3545; font-weight: bold; }

Understanding Wage Garnishment and How it Affects Your Paycheck

Wage garnishment is a legal procedure in which a portion of an individual's earnings is withheld by an employer for the payment of a debt. This process is typically initiated by a court order, allowing creditors to collect unpaid debts directly from an employee's paycheck. While the concept is straightforward, the rules governing how much can be garnished are complex and primarily dictated by federal and state laws.

Federal Protections: The Consumer Credit Protection Act (CCPA)

The primary federal law protecting employees from excessive wage garnishment is Title III of the Consumer Credit Protection Act (CCPA). This act sets limits on the amount of earnings that can be garnished in any workweek or pay period, ensuring that employees retain enough income to meet their basic living expenses. It's important to note that these federal limits apply to most types of consumer credit debts, such as credit card debt, medical bills, and personal loans. However, different rules may apply to specific types of debts like child support, alimony, federal student loans, and federal taxes.

What are "Disposable Earnings"?

A crucial term in wage garnishment calculations is "disposable earnings." This is not the same as your net pay. Disposable earnings are defined as the amount of earnings remaining after the deduction of any amounts required by law to be withheld. This typically includes:

• Federal income tax
• State income tax
• Local income tax
• Social Security (FICA)
• Medicare (FICA)

Voluntary deductions, such as health insurance premiums, union dues, retirement contributions (e.g., 401k), or charitable contributions, are NOT deducted when calculating disposable earnings for garnishment purposes under the CCPA. This means your disposable earnings for garnishment calculations might be higher than your take-home pay.

How Federal Garnishment Limits Are Calculated

Under the CCPA, the maximum amount that can be garnished from an individual's disposable earnings in any workweek or pay period is the lesser of two figures:

1. 25% Rule: 25% of the individual's disposable earnings for that week or pay period.
2. Federal Minimum Wage Rule: The amount by which the individual's disposable earnings for that week or pay period exceed 30 times the federal minimum wage.

The federal minimum wage is currently $7.25 per hour. For pay periods longer than a week, the "30 times the federal minimum wage" threshold is adjusted proportionally:

• Weekly: 30 x Federal Minimum Wage
• Bi-weekly: 60 x Federal Minimum Wage (2 weeks)
• Semi-monthly: 65 x Federal Minimum Wage (approximately 2.167 weeks)
• Monthly: 130 x Federal Minimum Wage (approximately 4.333 weeks)

The calculator above uses these federal guidelines to help you determine the maximum potential garnishment.

Example Calculation:

Let's consider an employee with the following details for a weekly pay period:

• Gross Pay: $800
• Legally Required Deductions (taxes, SS, Medicare): $150
• Federal Minimum Wage: $7.25/hour

1. Calculate Disposable Earnings: $800 (Gross Pay) – $150 (Legally Required Deductions) = $650
2. Apply 25% Rule: $650 (Disposable Earnings) * 0.25 = $162.50
3. Apply Federal Minimum Wage Rule:
   • 30 x Federal Minimum Wage: 30 * $7.25 = $217.50
   • Disposable Earnings exceeding threshold: $650 – $217.50 = $432.50
4. Determine Maximum Garnishment: The lesser of $162.50 (from 25% rule) and $432.50 (from FMW rule) is $162.50.

In this example, the maximum allowable garnishment for the week would be $162.50.

State Law Variations

It's crucial to remember that many states have their own wage garnishment laws. If a state's law provides greater protection to the employee (i.e., allows for a smaller garnishment amount) than the federal CCPA, then the state law must be followed. Employers must comply with the law that results in the lowest garnishment amount. This calculator provides an estimate based on federal law; for precise figures, always consult your state's specific regulations or a legal professional.

Why Use This Calculator?

This ADP Wage Garnishment Calculator helps both employees understand potential deductions and employers ensure compliance with federal regulations. By inputting gross pay, legally required deductions, and the pay period, you can quickly estimate the maximum amount that can be legally garnished from a paycheck for general consumer debts, helping to prevent over-garnishment and ensure fair treatment.