QB Online child support garnishment limits, Discretionary Income/exemption calc, Colorado
garnishments are more complex than QB can handle. Please consider a an enhancement. Use case for a new requirement:
As far as I can tell, there is no way to manually define income available for a garnishment. Colorado law recently implemented a statutory exemption (to garnishments) which is the greater of 1) Full time hours x Min wage rate, or 2) 80% of disposable earnings (net after taxes).
Calc depends on pay-cycle; 40 hours, 80 hours, or 86.67 hours.
This is a SERIOUS PITA to have to manually calculate for every single paycheck for an hourly worker!
And there seems to be no part time equivalent calc, so in this case it's always FTE garnishment protection.
In QB, we could really use a way to define "Income available for (or exempted from) garnishment". Either a calculation, or a defined $amount. CO can't be the only state doing this.
Also, CS garnishment orders often have 2 %'s baked in. A greater % is used for for CS overdue by 12 months.
TLDR: Colorado min wage, or low wage workers have little room, if any, for garnishment.
Ex. someone works 60 weeks on a 2 week paycycle @ $15/hr
Gross is $900, Say net is $800 after taxes.
Amount of exemption is greater amount of either 1) 80hours X 12.00 (St. min wage) = $960, or 2) 80% x $800 = $640.
$960. ZERO Garnishment.
Even at FT at $18/hr, $1,440 gross, $1, 250 net, exemption is $960 or $1,000 -> so $250 available, then only 15% (or 20% if 12 mo past due CS) of THAT amount is garnish-able = $50!
I should charge $50 for just figuring this out each paycheck.