Select Provincial garnishment calculation method

  1. Review the order to determine:

  2. Select the calculation method based on the order.

    • Straight Dollar Amount - A set dollar amount.

    • % of Gross Earnings less Statutory Deductions - A calculated percentage of the employee's gross earnings minus statutory deductions.

      Note: If you select this option, do not enter a Value Per Pay greater than 100%.

    • % of Gross Earnings less Statutory Deductions and Union - A calculated percentage of the employee's gross earning minus statutory deductions and union fees.

      Note: If you select this option, do not enter a Value Per Pay greater than 100%.

    • % of Gross Earnings up to Provincial Subsistence Maximum - A calculated percentage of the employee's gross earning up to the Provincial Subsistence maximum amount. This selection ensures the amount deducted does not exceed the Provincial Subsistence Maximum amount for that employee’s province. If the garnishment amount results in the garnishment deduction exceeding the Provincial Subsistence Maximum amount, Powerpay only deducts an amount up to that maximum.

      Note: If you select this option, do not enter a Value Per Pay greater than 100%.

    • Garnishment Value becomes the employee’s Net Pay - Use this calculation method when the garnishment order dictates that the employee be left with a specific amount of net pay and the remainder is to applied to the garnishment deduction. Garnishment Payee = Any Company Ltd., and employee John Doe has a Garnishment Value Per Pay amount of $500.00 and a net pay of $1,100.00, then cheques will be issued to John Doe for $500.00 and to Any Company Ltd. for $600.00.

      Important: If you select this option, you must also select the Do not apply minimum subsistence rules option.

    • Employee’s Net Pay becomes the Garnishment Value - The employee's entire net pay is the amount of the garnishment. Select this option when the garnishment order indicates that the garnishment cheque is to be for the employee’s entire net pay. The order generally indicates that, upon termination, the employee’s entire net pay is to be payable to the garnishor. This requirement is applicable in some cases to garnishment orders issued by CRA. If using this selection, the Value Per Pay is usually set to 100(%).

      Important: If you select this option, you must also select the Do not apply minimum subsistence rules option.

      Note: If you select this option, do not enter a Value Per Pay greater than 100%.

  3. Enter the Garnishment Value Per Pay value.

    • Garnishment Value Per Pay - The dollar amount or percent deducted per pay. A $ sign appears in front of the amount if the value represents a dollar amount. A % sign appears after the amount if the value represents a percentage.

      Note: Do not enter a negative amount in this field.

  4. Select the termination requirement per the order.

    • Termination Requirements - Select the Yes or No to indicate whether the garnishment order indicates that the employee's entire net pay should be garnished upon termination.