Wage Garnishment Calculator

Example Calculation for California

Assume the state minimum hourly wage is $15.50 an hour and the disposable earnings are $1,000 per week after all taxes and allowable deductions.

1. Calculate 25% of Disposable Earnings:
   • First, we find 25% of $1,000.
   • 25% of $1,000 is $250.
2. Calculate 40 Times the State Minimum Hourly Wage:
   • Next, we multiply the state minimum hourly wage by 40.
   • 40 times $15.50 equals $620.
3. Determine the Amount by Which Disposable Earnings Exceed 40 Times the Minimum Wage:
   • We subtract 40 times the state minimum wage from the disposable earnings.
   • $1,000 minus $620 equals $380.
4. Determine the Maximum Garnishment:
   • We compare the two amounts: $250 (25% of disposable earnings) and $380 (the amount by which disposable earnings exceed 40 times the state minimum wage).
   • The lesser amount between $250 and $380 is $250.

Therefore, the maximum amount that can be garnished from the weekly paycheck is $250.

Summary

• Option A: The amount by which disposable earnings exceed 40 times the state minimum hourly wage ($380).
• Option B: 25 percent of disposable earnings ($250).

In this example, the lesser amount is $250, so the maximum garnishment would be $250.