Wage garnishment happens when a court orders that your employer withhold a specific portion of your paycheck and send it directly to the creditor or person to whom you owe money, until your debt is resolved.
Child support, consumer debts and student loans are common sources of wage garnishment. Your earnings will be garnished until the debt is paid off or otherwise resolved.
You have legal rights, including caps on how much can be taken at once. And you can take steps to lessen the effect and help you bounce back. CredibleBH
Thank you for the additional information, Schroth.
I'm here to help you fix and explain how garnishment works in QuickBooks Online.
In order for the garnishment to be taken out on Joey's paycheck, the minimum disposal income has to be $435.
The disposable income is the total amount after deducting the federal and any exempt deductions. If the disposable income is $435, that means you can deduct an additional at most 25% for the garnishment.
You'll want to read these articles to learn more about how QuickBooks Online Payroll handles garnishment: