Select this amount type for Dayforce to calculate the garnishment based on a percentage of the employee's gross earnings, up to the provincial minimum subsistence limit for that type of garnishment.
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.
To use this amount type, you must set a minimum subsistence rule for the garnishment. Do this by selecting one of the following options in the Apply Subsistence Rule drop-down list of the garnishment:
- Apply Minimum Subsistence Rules: When you select this option, you must select an option in the Minimum Subsistence Rule drop-down list of the garnishment order.
- Override the Minimum Subsistence Amount: When you select this option, you must enter a value in the Override Subsistence Amount field of the garnishment order.
When you select the % of Gross up to Provincial Max amount type, the garnishment payment takes priority over pre-tax and post-tax deductions on the employee earnings. This means that if there is only a limited amount of pay left after tax, the garnishment amount is withheld before other pre-tax or post-tax deductions are withheld.
Example
Note: Exemption amount per payment depends on factors such as pay frequency and number of dependents
You add a federal garnishment with an issuing province of Alberta for an employee who is paid biweekly. In the Order Details section of the garnishment, you configure the following:
- Ordered Amount Type: % of Gross of up to Provincial Max
- Ordered Percent: 25%
- Apply Subsistence Rule: Apply Minimum Subsistence Rules
- Minimum Subsistence Rule: AB: Exemption formula
In the current pay run, the employee has gross earnings of $2,400, and 25% of this is $600. For the purpose of this example, say that the maximum allowable based on the exemption formula that is used in Alberta is $574.04.
As a result, the application only deducts $574.04 for this garnishment, and not $600.
Additional details about garnishments for Canadian employees are available in the following topics: