California Garnishment (CAGN)

The California Garnishment (CAGN) special routine ensures that no more than the Federal Limit of an employee’s Net Disposable Income (NDI) for garnishment deductions, to include Child Support deductions established using the CACS special routine, is taken per pay period for an employee. NDI is defined by deducting Federal Tax, State Tax, Health Insurance Tax (HIT), and Employee Retirement Contributions from gross earnings.

The CAGN special routine processes multiple garnishments based on the Deduction Processing Order Number specified at the Type level. If more than one garnishment has the same Deduction Processing Order Number specified at the Type level, the deduction with the earliest effective date will be processed first. If more than one has the same effective start date, the process will then look up to the Deduction Type code and process by codes using numbers first then those using alpha characters.

The CAGN special routine first ensures that a garnishment deduction is not taken if the employee has not earned the minimum gross amount. The garnishment minimum gross amounts are stored for each pay frequency in the Special Routine Amount/Percent fields on the Deduction Plan (DPLN) page as follows:

  • Amount/Percent 1 is the weekly pay frequency garnishment minimum gross amount.

  • Amount/Percent 2 is the bi-weekly pay frequency garnishment minimum gross amount.

  • Amount/Percent 3 is the semi-monthly pay frequency garnishment minimum gross amount.

  • Amount/Percent 4 is the monthly pay frequency garnishment minimum gross amount.

  • Amount/Percent 5 is the annual pay frequency garnishment minimum gross amount.

If the garnishment minimum gross amount is met for one or more deductions, the special routine then determines if the deduction is a Court-Ordered (for example, garnishment) or Non-Court Ordered (for example, Tax Levy) deduction. This is done by looking at the Amount/Percent 8 field on DPLN. If this field has a value other than zero, it is a Non-Court Ordered deduction.

The following fields on the California Garnishment OPROC ID are  used in determining the Federal Limit for levy deductions:

  • Configuration Numeric Field 8: Weekly Upper Tier Amount

  • Configuration Numeric Field 9: Biweekly Upper Tier Amount

  • Configuration Numeric Field 10: Semi-Monthly Upper Tier Amount

  • Configuration Numeric Field 11: Monthly Upper Tier Amount

  • Configuration Numeric Field 12: Annual Upper Tier Amount

If the deduction is a levy deduction, the following tiers are used to determine the Federal Limit for the deduction:

Tier 1

  • Determine the NDI and the Minimum Gross Amount from Amount/Percent 1-5 based on the employee's pay frequency.

  • If the NDI is less than the Minimum Gross Amount, the Federal limit will be $0 for the levy.

Tier 2

  • Determine the Minimum Gross Amount from Amount/Percent 1-5 and the Upper Tier Amount from OPROC based on the employee's pay frequency.

  • If the NDI is between these two values, subtract the minimum gross amount from the NDI. This will be the Federal Limit for the levy.

Tier 3

  • Determine the Upper Tier Amount from OPROC based on the employee's pay frequency.

  • If the NDI is greater than the upper tier amount, multiply NDI by the value in Amount/Percent 8 on DPLN. This will be the Federal Limit for the levy.

If the deduction is a Court-Ordered, the following calculations are performed to determine the Federal Limit for the deduction. The Federal Limit is the lesser of these two calculations:

  • Calculation 1: The employee’s NDI will be multiplied by the multiplier defined on the Configuration Numeric Field 6 on the Offline Process Configuration (OPROC) entry where Feature ID is California Garnishment.

  • Calculation 2: The minimum protected wages will be determined by taking the minimum wage found on the Amount/Percent 7 field for the deduction and multiply it by the hours found within the Configuration Numeric Field on the same OPROC entry based on the Payment Frequency ID field on PYCL for the employee:

  • Configuration Numeric Field 1: weekly pay period hours

  • Configuration Numeric Field 2: bi-weekly pay period hours

  • Configuration Numeric Field 3: semi-monthly pay period hours

  • Configuration Numeric Field 4: monthly pay period hours

  • Configuration Numeric Field 5: annual pay period hours

Then the minimum protected wages will be deducted from the employee’s NDI and multiplied by the multiplier value found within Configuration Numeric Field 7 on OPROC for the same OPROC entry.

The Federal Limit is the lesser of the two calculations. The total of deductions where special routine is California Child Support and California Garnishments cannot be more than the Federal Limit where all California Child Support deductions are accounted for first.

The total of deductions where special routine is California Child Support and California Garnishments cannot be more than the Federal Limit for each specific deduction where all California Child Support deductions are accounted for first. Each deduction using the California Garnishment Routine considers its own Federal Limit. Note: It is assumed that Non-Court Ordered deductions (Tax Levies) will have a lower deduction processing order than Court Ordered deductions (Garnishments) and so it is processed first.

Each California Garnishment deduction with the Amount/Percent 6 field populated are identified as Sheriff Enforced Earnings Withholding Oder (EWO). The garnishment amount minus the sheriff’s fee identified by the Amount/Percent 6 field is contributed to the deduction goal amount while both the garnishment amount, contributed to the goal, and sheriff’s fee is sent to the Sheriff’s department. If the deduction is equal to or less than the amount entered in the Amount/Percent 6 field then a sheriff’s fee will not be processed.

Garnishments with the Use with Primary Deduction field checked generates an administrative fee using the deduction details within the Secondary Deduction Type and Secondary Deduction Plan fields. If a garnishment with an administrative fee is backout/suspended due to negative net pay amount or due to Federal Limit being exceeded, then the administrative fee will be backed out.

Note: This functionality is only available when utilizing the Next Generation Payroll service.

Feature Example:

Offline Process Configuration

  • From: 01/01/1900

  • To: 12/31/9999

  • Feature ID: California Garnishment

  • Configuration Numeric Field 1: 40 (weekly pay period hours)

  • Configuration Numeric Field 2: 80 (bi-weekly pay period hours)

  • Configuration Numeric Field 3: 86.67 (semi-monthly pay period hours)

  • Configuration Numeric Field 4: 173.33 (monthly pay period hours)

  • Configuration Numeric Field 5: 2080 (annual pay period hours)

  • Configuration Numeric Field 6: 0.25 (Percent to be multiplied by NDI to determine Federal Limit)

  • Configuration Numeric Field 7: 0.50 (Multiplier)

  • From: 09/01/2023

  • To: 12/31/9999

  • Feature ID: California Garnishment

  • Configuration Numeric Field 1: 48 (weekly pay period hours)

  • Configuration Numeric Field 2: 96 (bi-weekly pay period hours)

  • Configuration Numeric Field 3: 104 (semi-monthly pay period hours)

  • Configuration Numeric Field 4: 208 (monthly pay period hours)

  • Configuration Numeric Field 5: 2496 (annual pay period hours)

  • Configuration Numeric Field 6: 0.20 (Percent to be multiplied by NDI to determine Federal Limit)

  • Configuration Numeric Field 7: 0.40 (Multiplier)

  • Configuration Numeric Field 8: 290 (Levy Calculation Weekly Upper Tier)

  • Configuration Numeric Field 9: 580 (Levy Calculation Biweekly Upper Tier)

  • Configuration Numeric Field 10: 628.29 (Levy Calculation Semi-monthly Upper Tier)

  • Configuration Numeric Field 11: 1256.01 (Levy Calculation Monthly Upper Tier)

A semi-monthly employee has the following garnishments:

  1. Child support garnishment of $150/month,

  2. Garnishment for $50/mo with a contributed goal of $150 and goal of $3,000 with an administrative fee of $1.50, sheriff fee of $5, and garnishment minimum gross amount of 1,400

  3. Rate-based garnishment at 15% per month with a contributed goal of $300 and goal of $1,000 with an administrative fee of $1.50, sheriff fee of $5 and garnishment minimum gross amount of 1,400

The employee’s gross pay is $2,600.10 (exceeding minimum gross amount for both garnishments) with total federal and state taxes of $780.30.

Calculation 1:

  1. Garnishment federal limit is $455.02 (NDI of $1,800.07 multiplied by 25% (Configuration Numeric Field 6 on OPROC)).

Calculation 2

  1. Minimum protected wages is $1,300.05 (minimum wage of $15 multiplied by 86.67 (Configuration Numeric Field 3 on OPROC))

  2. 50% * (Disposable Income of $1,800.07 minus minimum protected wages of $1,300.05) = $260.01

The Federal Limit is $260.01 as it is lower of the two calculations.

  1. Child support = $150

  2. Garnishment 1 = $50

  1. Going toward goal amount: $45

  2. Update contributed goal amount is: $195

  3. Sheriff’s fee: $5

  1. Garnishment 2 = $100

Note: 15% of $1,500 is $225. Amount is reduced due to federal limit of $300 being reached.

  1. Going toward goal amount: $55.01

  2. Update contributed goal amount is: $355.01

  3. Sheriff’s fee: $5

  4. Administrative Fee (for garnishment 1) = $1.50

  5. Administrative Fee (for garnishment 2) = $1.50

A semi-monthly employee has the following deductions:

  1. Child Support deduction of $100/month.

  2. Non-Court Ordered (Levy) deduction for $100/month with a contributed goal of $150, goal of $2000, and garnishment minimum gross amount of 471.25.

  3. Court Ordered (Garnishment) deduction for $200/month with a contributed goal of $0 and goal of $3,000 with an administrative fee of $1.50, sheriff fee of $10, and garnishment minimum gross amount of 471.25.

The employee’s gross pay is $3500 (exceeding minimum gross amount for both garnishments) with total federal and state taxes of $1092. The NDI is $2408.

The process for determining the Federal Limit for both California Garnishment Routine deduction is as follows:

  1. Gather all deductions where Special Routine ID = California Garnishments and process lowest Deduction Processing Order Number first.

  1. LVY1

  2. GARN1

  1. Check Amount/Percent 8.

  1. If other than 0.00, process the following to determine Federal Limit for all Non-Court Ordered debt:

  2. LVY1

Determine Tier

  • Tier 1? NO – NDI of $2,408 is not below 471.25 on A/P 3

  • Tier 2? NO – NDI of $2,408 is not between 471.26 (A/P3) and 628.29 (Configurable Numeric Field 10 on OPROC)

  • Tier 3? YES – NDI of $2,408 is above 628.28 on Configurable Numeric Field 10 on OPROC.

        • Tier Calculation: NDI ($2,408) multiplied by value in Amount/Percent 8 field (0.25) = $602.00

  1. If equal to 0.00, use the Court-Ordered debt calculations to determine Federal Limit:

  2. CAGN1

Calculation 1

  • $2,408 * 0.20 (Configurable Numeric Field 6) = $481.60

Calculation 2

  • Min Wage of $15.25 (Amount/Percent 7) * 104.00 (Configurable Numeric Field 3) = $1,586.00

  • 40% (Configurable Numeric Field 7) * (Disposable Income of $2,408 - $1,586.00) = $328.80

$328.80 is less than Calculation of $481.60 so the Federal Limit for CAGN1 is $328.80.

The pay period deductions are as follows:

  1. Child support = $100

  2. Levy 1: $100

  1. The current total deductions are $200 (Child Support + Levy 1)

  • $200 is less than the Federal Limit of $602 so the full amount for Levy 1 is taken.

  1. Contribution to Goal = $250

  1. Garnishment 1 = $128.80

  1. The current total deductions (100 + 100 + 200) = 400 is greater than the Federal Limit of 328.80.

  2. Garnishment 1 is reduced to $128.80 to not exceed the Federal Limit.

  1. Contribution to Goal Amount = $118.80

  2. $10 goes towards the Sheriffs fee

  3. Administrative Fee (for garnishment 1) = $1.50

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