"Garnishment Formula for Wage Levy" - Montana

Garnishment Formula for Wage Levy is a legal document that was released by the Montana Department of Revenue - a government authority operating within Montana.

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CLEAR FORM
Garnishment Formula for Wage Levy
Federal Consumer Credit Protection Act, Title III (15 USC Sections 1671-1677), and Montana
Statute (25-13-614, MCA) provides exemptions from garnishment.
Definitions:
• Earnings: Compensation for personal services, whether called wages, salary,
commissions, or bonuses, and payments to pension or retirement program.
• Disposable Income: Earnings remaining after (tax) deductions required by law
(Federal and State taxes, FICA, etc.)
• Garnishment: Any legal or equitable procedure by which the earnings of an individual
are required to be withheld for payment of a debt.
Computation of Garnishment Amount
1.
_________________ Enter total earnings
(-) _________________ Deduct federal withholding
(-) _________________ Deduct state withholding
(-) _________________ Deduct FICA, Federal Disability and Medicare
2. (=) _________________ Disposable income
3.
_________________ Enter 25% (0.25) of line 2
4. (-) _________________ Deduct any previously received garnishment amount, including
child support and IRS levies.
5.
_________________ Line 3 minus line 4
6.
_________________ Disposable income (from line 2)
7. (-) _________________ Deduct amount from drop down option based on pay schedule
Use: ($0.00 if no wages)
($217.50 if paid weekly)
($435.00 if paid bi-weekly)
($471.25 if paid semi-monthly)
($942.50 if paid monthly)
($2,827.50 if paid quarterly)
8.
_________________ Line 6 minus line 7
The amount to be garnished is the lesser of line 5 or line 8 for each pay period. If either line 5 or
line 8 is zero or less, send no money and return the levy notice to the department with a note of
explanation.
The maximum amount to be garnished is the lesser of:
• 25% of disposable income for each pay period, or
• the amount of disposable earnings for that pay period which exceed 30 times the federal
minimum hourly wage (currently $7.25 per hour). 29 USC Sec. 206(a)(1).
Mail a copy of the completed form with your remittance, if applicable, or any other necessary
information to Montana Department of Revenue, PO Box 6309, Helena, MT 59624-6309.
Please retain a copy of this form for your records.
Employee Name: ____________________________________________________
Employee ID#: _________________________
CLEAR FORM
Garnishment Formula for Wage Levy
Federal Consumer Credit Protection Act, Title III (15 USC Sections 1671-1677), and Montana
Statute (25-13-614, MCA) provides exemptions from garnishment.
Definitions:
• Earnings: Compensation for personal services, whether called wages, salary,
commissions, or bonuses, and payments to pension or retirement program.
• Disposable Income: Earnings remaining after (tax) deductions required by law
(Federal and State taxes, FICA, etc.)
• Garnishment: Any legal or equitable procedure by which the earnings of an individual
are required to be withheld for payment of a debt.
Computation of Garnishment Amount
1.
_________________ Enter total earnings
(-) _________________ Deduct federal withholding
(-) _________________ Deduct state withholding
(-) _________________ Deduct FICA, Federal Disability and Medicare
2. (=) _________________ Disposable income
3.
_________________ Enter 25% (0.25) of line 2
4. (-) _________________ Deduct any previously received garnishment amount, including
child support and IRS levies.
5.
_________________ Line 3 minus line 4
6.
_________________ Disposable income (from line 2)
7. (-) _________________ Deduct amount from drop down option based on pay schedule
Use: ($0.00 if no wages)
($217.50 if paid weekly)
($435.00 if paid bi-weekly)
($471.25 if paid semi-monthly)
($942.50 if paid monthly)
($2,827.50 if paid quarterly)
8.
_________________ Line 6 minus line 7
The amount to be garnished is the lesser of line 5 or line 8 for each pay period. If either line 5 or
line 8 is zero or less, send no money and return the levy notice to the department with a note of
explanation.
The maximum amount to be garnished is the lesser of:
• 25% of disposable income for each pay period, or
• the amount of disposable earnings for that pay period which exceed 30 times the federal
minimum hourly wage (currently $7.25 per hour). 29 USC Sec. 206(a)(1).
Mail a copy of the completed form with your remittance, if applicable, or any other necessary
information to Montana Department of Revenue, PO Box 6309, Helena, MT 59624-6309.
Please retain a copy of this form for your records.
Employee Name: ____________________________________________________
Employee ID#: _________________________