Plain-English guidance for payroll, HR and compliance teams that receive garnishment orders: what counts as disposable earnings, what federal law caps, how competing orders are ranked, and how electronic child support orders work.
By Global Pay Compliance Desk · Updated · General information, not legal advice
The federal definition, which deductions count, and a worked example.
Read moreFederal maximums for creditor, support, student loan, tax and bankruptcy orders.
Read moreHow competing orders are ranked when one paycheck cannot satisfy them all.
Read moreHow electronic income withholding orders work, and how they compare with paper.
Read moreStraight answers to the questions payroll teams ask most.
Read moreEnter pay and taxes to see disposable earnings and the maximum withholding for federal and select state rules.
Arizona’s 2026 minimum-wage increase raises the protected earnings floor on creditor wage garnishments. Withhold the lesser of 10% of disposable earnings or the amount above 60 times the highest applicable minimum wage.
California piloting electronic service of garnishments to employers
The Federal Office of Child Support Services (OCSS) expands real-time electronic income withholding order protocols, accelerating child support processing speeds nationwide.
California significantly increases the wage floor exempt from creditor garnishments by tying the exemption formula to 48 times the state minimum wage.
Please note: Information and computational tools on this site are provided for operational benchmarking and compliance reference. They do not constitute formal legal advice. State laws may provide exemptions exceeding federal baseline formulas.
