In the Excluded Earnings tab of the garnishment order, you can exclude one or more earning codes from the employee's disposable income, which is the amount of the employee's pay that is subject to be garnished.
By default, the application includes all non-reimbursement and non-taxable benefit earnings as disposable income. However, in some cases, you might need to exclude one or more earnings. For example, many provinces require employers to exclude taxable benefits from employees' total pay before calculating a garnishment amount.
When you exclude an earning, you reduce the amount that the application can garnish from an employee's pay. For example, exclude a taxable benefit earnings and, if an employee is paid $1,000 in salary and receives $50 in this taxable benefit, the application only garnishes from the $1,000. If the garnishment is calculated as 10% of their gross pay, the application deducts $100 (10% of $1,000, not $105 or 10% of $1050).
The Excluded Earnings tab displays an Included Earnings list, which displays your organization's earning codes. You can click the right and left arrow buttons to move earnings from the Included Earnings section to the Excluded Earnings section:
Information about creating garnishments for Canadian employees is located in the topic Create Garnishments for Canadian Employees.