Select this amount type for the application to calculate the garnishment as the difference between the employee's net pay after taxes and the minimum subsistence amount for the garnishment deduction.
If you select this amount type, you need to select one of the following options from the Apply Subsistence Rule drop-down list of the garnishment:
- Apply Minimum Subsistence Rules: If you select this option, you must also select an option from the Minimum Subsistence Rule drop-down list of the garnishment order.
- Override the Minimum Subsistence Amount: If you select this option, you must enter a value in the Override Subsistence Amount field of the garnishment order.
When you select this amount type, the garnishment payment takes priority over pre-tax and post-tax deductions on the payment. This means that if there is only a limited amount of pay left after tax, the amount goes to the garnishment before it goes to a deduction.
Example
You create a garnishment with the following order details:
- Ordered Amount Type: Difference Between Disposable Net and Exemption Entered
- Apply Subsistence Rule: Override the Minimum Subsistence Amount
- Override Subsistence Amount: 800
In the current pay run, the employee has the following:
- Gross earnings of $2,400
- Taxes (CPP, EI, and Fed Tax) totaling $598.59.
- A post-tax deduction of $200
The application determines the maximum amount that it can deduct for the garnishment by subtracting tax ($598.59) and the override subsistence amount ($800) from gross pay ($2,400) to get an amount of $1,001.41. The $200 deduction is taken from the $800 that is protected from being garnished, and this results in a final net pay of $600:
See also: