Select this amount type if an employee is required to have one federal garnishment and one summons garnishment at the same time.
Before You Begin: This option is only displayed when you set the issuing province of the garnishment as Quebec.
When you configure this garnishment, the application calculates the payment for both garnishments at a combined total of 30% (based on a split that you define) of gross pay minus the following:
- Federal and provincial income tax, CPP/QPP contributions, EI premiums, and QPIP premiums.
- The basic exemption amount for the employee, based on their pay frequency
- The exemption amount for any dependents
The basic exemption amount is a standard amount set by Quebec law that is exempt from garnishments.
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.
Additional Information
When you select this amount type, you need to create the federal and summons garnishments at the same time. For example, the application only allows you to save a federal garnishment with this amount type if there is also a summons garnishment with this amount type, and vice versa.
The federal and summons garnishments that you create with this amount type require the following configuration:
- In the Ordered Percent field of each garnishment, you need to split the 30% maximum between the two garnishments (for example, you could enter 15% for each garnishment).
- In the Apply Subsistence Rule drop-down list, you need to select the Apply Minimum Subsistence Rule option.
- In the Minimum Subsistence Rule drop-down list, you need to select the Amount plus Percentage option.
Example
You add federal and summons garnishments with an issuing province of Quebec for an employee who is paid biweekly. In the Order Details section of the garnishment, you define the following for both garnishments:
- Ordered Amount Type: % of Gross less Statutory Ded split over Multiple Garnishments (Quebec only)
- Ordered Percent: 15
- Apply Subsistence Rule: Apply Minimum Subsistence Rules
- Minimum Subsistence Rule: Amount plus Percentage
Moreover, the employee does not have dependents defined in the Additional Details section of the garnishment.
In the current pay run, the employee has gross earnings of $2,400, and statutory deductions of $593.74. Moreover, for the purpose of this example, the basic exemption amount for the employee, based on their pay frequency, is $597.12.
Note: Basic exemption amount per payment depends on factors such as pay frequency and number of dependents
The application determines the amount that is subject to garnishment by subtracting statutory deductions ($593.74) and the basic exemption amount ($597.12) from gross pay ($2,400) to get $1,209.14.
The application then calculates 30% of $1,209.14 to get 362.74. Because the split is defined as 15% for each garnishment (that is, a 50/50 split), the application divides the above value by two to determine a payment of 181.37 for each garnishment.
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