What Percentage of Your Earnings Are Taken When Wages Are Garnished?

If you owe money to a government agency or even to an individual, you may be subject to a wage garnishment. This is a legal arrangement where your employer receives a legal notice requiring him to deduct money from your paycheck and send it to the party who you have not paid. Although you cannot prevent a garnishment if you legally owe the money, you are entitled to certain protections that allow you to take home enough money to cover your basic expenses.

Garnishment Rates

The Consumer Credit Protection Act sets limits on the amount that your employer can take out of your paychecks if your wages are being garnished. According to this law, for most types of debts, your employer cannot garnish more than 25 percent of the disposable wages you earn, or your earnings after federal and state payroll deductions. But there is a maximum cap to this provision: any disposable earnings equaling more than 30 times the amount of the federal minimum wage are exempt from garnishment.

Higher Rate Garnishments

Certain types of debts require your employer to garnish your wages at a higher rate, such as if you owe money to the federal or your state government for taxes, if you have declared bankruptcy or if you owe child support. If you are supporting a child other than the one you are failing to provide for with court-ordered child support payments, your employer can withhold up to 50 percent of your disposable wages. If you have no other child to support, your employer can garnish up to 60 percent of your wages. If your child support payments are more than 12 weeks behind, your employer can garnish an additional 5 percent of your wages.

Employee Protections

If your disposable income amounts to less than the federal poverty level, your earnings are protected and your employer cannot garnish your wages no matter how much you owe. In addition, it is illegal for your employer to fire you because of a wage garnishment requirement, or even multiple wage garnishments. Wage garnishment limits are intended to ensure that every employee receives at least partial compensation for his work.

How Wage Garnishment Works

Garnishment can only occur with a court order establishing your indebtedness. The plaintiff or the plaintiff's attorney will send a written notice to your employer, giving him a specific period to respond and provide your payroll information, such as how much you typically earn. Your employer will them withhold the money from your paycheck until your debt has been paid in full.