Select this amount type for the application to attempt to collect a flat dollar amount from the employee's pay for the garnishment. The amount that the application can collect can be limited by minimum subsistence rule or limit placed on the garnishment.
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: Straight Dollar Amount
- Ordered Amount: $1,400
- Apply Subsistence Rule: Override the Minimum Subsistence Amount
- Override Subsistence Amount: $800
In the current pay run, the employee has gross earnings of $2,400, and taxes (CPP, EI, and Fed Tax) totaling $598.59.
The application calculates the garnishment amount by subtracting $598.59 and $800 from $2,400 to get a maximum garnishment amount of $1,001.41. This leaves a net pay of $800 that can be subject to other deductions, but that cannot be impacted by this specific garnishment.
See also: