Garnishment Payment Method

There are 5 different payment methods, linked to different payment frequencies

 i.    Set Amount: A fixed monthly amount deduction from the provider payment until the garnishment balance reaches $0

Amount is user entered under "Amount" and is the fixed amount of how much garnishment will be deducted

 ii.    Set Percentage: A fixed percentage deduction from the gross provider payment until the garnishment balance reaches $0.

Percentage is user entered under "Percentage" is the fixed percentage of how much garnishment will be deducted.

(Gross provider payment reimbursement means total after adjustments, registration fees and family fees have been applied.)

 iii.    Lump Sum: Used with Garnishment Entities (VRC – Vehicle Registration Collections & EDD – Employment Development Department), is a one-time deduction up to the full amount of the provider payment reimbursement.

Amount is user entered under "Amount" and is the lump sum amount of how much garnishment will be deducted

 iv.    Threshold: A threshold amount as dictated by the garnishment entity document until the garnishment total is $0

With Threshold, an Exempt Amount can be user entered under "Amount" and in which if the PV payment is equal to or less, garnishment will not be deducted.

 v.    Set Combination: A combination of a fixed amount or a fixed percent, whichever is the lesser
Example: Child Support Services is a set amount dictated by the court unless the set amount exceeds 50% of the provider payment. The deduction is the lesser of the set amount or 50% of the provider’s gross reimbursement amount. The percentage deducted is configurable.

 v.    Lower and Higher Treshold: A combination of a fixed amount lower/higher threshold and a fixed percent.

The garnishment law limits the total amount of earnings that can be garnished. This amount will be determined based on a "lower and higher threshold concept" to garnish to whichever of the following two calculations that result in lesser garnishment:

Lower and Higher amounts threshold, and the Set Percentage can be entered:

- If the PV payment is equal to or less than the lower threshold, garnishment will not be deducted.

- If the PV payment is more than the lower threshold, but less than or equal to the higher threshold, garnishment will be deducted with the amount difference in the PV payment and the lower threshold

- If the PV payment is more than the higher threshold, garnishment will be deducted with the percentage entered, of the whole PV payment total.

 

Payment Frequency

There are 3 different payment frequencies, linked to different payment methods

 i.    Per Month: This currently applies to Payment Methods i, v, vi: Set Amount, Set Combination, Lower and Higher Threshold.

If there are multiple check runs within the same month, system will satisfy the Set Amount as much as possible, but once the Set Amount is met, any subsequent check run in the same month will not deduct anymore Garnishment

 ii.    Per Check Run: This currently applies to Payment Method ii, iv: Set Percentage & Threshold

 iii.    One Time: This currently applies to Payment Method iii: Lump Sum

 

Frequency and Method Relation

Not all frequency applies to all payment method

Exception: IRS is allowed Payment Frequency: Per Check Run or One Time and Payment Method: Set Percentage or Threshold.