E1: 07: California Garnishment Is Not Calculating Base On Either 25% Disposable Earnings Or 50% of Minimum Wages
(Doc ID 2644842.1)
Last updated on JANUARY 24, 2022
Applies to:JD Edwards EnterpriseOne US Payroll - Version 9.2 and later
Information in this document applies to any platform.
California (CA) court wants employer to deduct the garnishment amount either 25% of the employee disposable wage Or 50% of the employee minimum wage, whichever is the lesser of an amount. Below are the steps to determine the CA garnishment:
1. Multiply employee disposable earning by 25% then set this aside for now.
2. Next, determine the minimum wage for the employee. Subtract the employee Disposable wage with the minimum wage determined by the state of California. (for 2020, the total minimum wage exempt for the garnishment is $960 (12x80))
3. If the amount in step 2 is < zero, do not withhold any garnishment
4. If the amount from step 2 is > zero multiple that be ½ (to create the 50% of employee minimum wage).
5. Now compare the result of step 1 with step 4. If the amount from step 4 is lower than step 1, withhold that amount. If the amount from step 4 is > then step 1 than withholding the amount from step 1.
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