Select this amount type for the application to calculate the garnishment as 100% of the employee's net pay for a payment. After taxes, pre-tax deductions, and post-tax deductions have been subtracted from the employee's gross earnings, the remaining net pay is applied to the garnishment. With this method, post-tax deductions and pre-tax deductions take priority over the garnishment deduction amount.
Example
You create a garnishment with the ordered amount type: 100% of Net Pay, and no minimum subsistence rule applied.
In the current pay run, the employee has the following:
- Gross earnings of $2400
- Taxes (CPP, EI, and Fed Tax) totaling $598.59.
- A post-tax deduction of $200
The application determines the garnishment payment by subtracting taxes ($598.59) and the deduction ($200) from gross pay ($2,400) to get a garnishment of $1601.41.
See also: