How do I handle multiple wage assignments for the same employee?
a. If your employee has more than one assignment for support, add together the amount of support due. If 50% of your employee’s net disposable earnings will not pay in full all of the assignments of support, you will need to determine the percentage of each order to deduct. To determine the correct percentage of support, divide each order by the total amount of current support due for all orders. For example: Order A = $125 current child support Order B= $ 200 current child support Order C= $ 300 current child support TOTAL= $625 current child support To get the correct percentage of support, divide each order amount by the total support due for all orders.
Multiple child support wage assignments can be confusing, but some common scenarios are exemplified below. The guiding principal is that you must pay us in full when possible. But when it’s not possible to pay us in full due to limits on available earnings, pay us on a prorated basis always giving priority to current support due ahead of arrears repay. Example 1- Pay All Assignments in Full (Current Support and Arrears Repay)- For example, your employee has total net disposable income of $2000.00 per month. You cannot deduct more than 50% or $1000.00. You have received two Wage Assignments. Assignment A is for $400/mo current support and $25/mo repay on arrears for a total of $425/mo. Assignment B is for $500/mo current support and $50/mo repay on arrears for a total of $550.00. The accumulative total for both assignments is $975.00. This amount does not exceed the 50% of net cap ($1,000.00) so you must deduct & send to us the full amount due for current support and arrears repay on bo
a. If your employee has more than one assignment for support, add together the amount of support due. If 50% of your employee’s net disposable earnings will not pay in full all of the assignments of support, you will need to determine the percentage of each order to deduct. To determine the correct percentage of support, divide each order by the total amount of current support due for all orders. For example: Order A = $125 current child support Order B= $ 200 current child support Order C= $ 300 current child support TOTAL= $625 current child support To get the correct percentage of support, divide each order amount by the total support due for all orders.
If the employee has more than one assignment for support, add together the amount of support due. If fifty percent of the employee’s net disposable earnings will not pay in full all of the assignments for support, prorate it first among all of the current support assignments in the same proportion that each assignment bears to the total current support owed. For example, Employee has a total net disposable income of $800. You cannot deduct more than fifty percent, as the court does not state you can deduct a higher percentage, which is $400. He has two support obligations, one for $300 current support (obligation A) and another for $200 current support (obligation B) for a total of $500. Obligation A would get 3/5 of the $400 ($240) and obligation B would get 2/5 of the $400 ($160). In another example, Employee’s net disposable income is $1200. You cannot deduct more than fifty percent, as the court does not state you can deduct a higher percentage, which is $600. He too has two suppor
If the employee has more than one assignment for support, add together the amount of support due. If fifty percent of the employee’s net disposable earnings will not pay in full all of the assignments for support, prorate it first among all of the current support assignments in the same proportion that each assignment bears to the total current support owed. For example, George has a total net disposable income of $800. You cannot deduct more than fifty percent, as the court does not state you can deduct a higher percentage, which is $400. He has two support obligations, one for $300 current support (obligation A) and another for $200 current support (obligation B) for a total of $500. Obligation A would get 3/5 of the $400 ($240) and obligation B would get 2/5 of the $400 ($160). In another example, Henry’s net disposable income is $1200. You cannot deduct more than fifty percent, as the court does not state you can deduct a higher percentage, which is $600. He too has two support obl
