Select this amount type for the application to calculate the garnishment payment as a percentage of the employee's gross earnings minus taxes. Taxes include federal and provincial income tax, CPP/QPP contributions, EI premiums, and QPIP premiums. The calculation does not include post-tax or pre-tax deductions in the calculation.
When you select this amount type, you need to enter a value in the Ordered Percent field that the application uses to calculate the garnishment amount.
Also, 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
Note: This example does not factor in limits or minimum subsistence rules.
You add a federal garnishment order for an Ontario employee. You use the % of Gross less Statutory Deductions order amount type and enter an ordered percent of 25.
In the current pay, the employee has the following:
- Gross earnings of $2,400
- A pre-tax deduction for union dues of $120
- Taxes (CPP, EI, and Fed Tax) of $563.01
- A post-tax deduction of $200
Dayforce subtracts tax ($563.01) from $2,400 to get $1,836.99, which is the amount it can calculate the garnishment percentage from. It does not include the pre-tax or post-tax deduction in the calculation.
Dayforce deducts 25% of $1,836.99, or $459.25, for the garnishment from this payment.
Additional details about garnishments for Canadian employees are available in the following topics: