Garnishment Formula for Wage Levy
Garnishment Formula for Wage Levy
Federal Consumer Credit Protection Act, Title III (15 USC Sec. 1671-1677) and Montana Statute 25-13-614, MCA, provide exemptions from garnishment. Definitions:
Earnings: Compensation for personal services, whether called wages, salary, commissions, or bonuses, and payments to pension or retirement program.
Disposable Income: Earnings remaining after (tax) deductions required by law (federal and state taxes, FICA, etc.) Garnishment: Any legal or equitable procedure by which the earnings of an individual are required to be withheld for payment
of a debt.
Computation of Garnishment Amount
Fill in the RED areas only ? the form automatically calculates the rest!
1.
___________ Enter total earnings
Clear Form
(-) ___________ Deduct federal withholding
(-) ___________ Deduct state withholding (-) ___________ Deduct tips (if included in total earnings)
(-) ___________ Deduct FICA
(-) ___________ Deduct Medicare
2. (=) _$_0._0_0_______ Disposable income
3.
_$_0._0_0_______ Enter 25% (0.25) of line 2
4. (-) ___________ Deduct any child support, student loan garnishments and IRS levies
5.
_$_0._0_0_______ Line 3 minus line 4
6.
_$_0._0_0_______ Disposable income (from line 2)
7. (-) _$_0._0_0 __
Deduct amount from drop down option based on pay schedule
Use: ($0.00 if no wages)
($217.50 if paid weekly)
($435.00 if paid bi-weekly)
($471.25 if paid semi-monthly)
($942.50 if paid monthly)
8.
_$_0._0_0_______ Line 6 minus line 7
AMOUNT TO BE GARNISHED - The amount to be garnished is the lesser of
9.
_$_0._0_0_______
line 5 or line 8 for each pay period. If either line 5 or line 8 is zero or less, send no money, and return the Notice of Levy to Equity Management with a
note of explanation.
10.
___________ Enter total amount due from Notice of Levy
11. (-) ___________ Deduct any previously received garnishment amount
12. (=) _$_0._0_0_______ Line 10 minus line 11
13.
_$_0._0_0_______ Line 12 minus line 9 - subtotal of amount due next paycheck
14. (+) $_2_9_.0_0_______ For each payroll check sent, you must add a $29.00 processing fee to the
subtotal amount due
15.
_$_29_._00_______ Total amount due next payroll
The maximum amount to be garnished is the lesser of:
25% of disposable income for each pay period, or
The amount of disposable earnings for that pay period which exceed 30 times the federal minimum hourly wage (currently $7.25 per hour). 29 USC Sec. 206(a)(1).
Mail a copy of the completed form with your remittance, if applicable, or any other necessary information to: Equity Management, Inc., P.O. Box 4906, Missoula, MT 59806 Email: response@
Please retain a copy of this form for your records. Employee Name: ________________________________________________________
Consumer #: ____________________________________________________________
Payroll Date: _________________
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