Garnishments That Respect the Legal Caps
Fintra withholds garnishments post-tax on disposable earnings, applies CCPA category caps, and orders child support ahead of creditor claims - with a trace for every order.
How garnishments are computed
Garnishments are the last step of the paycheck, applied after taxes on disposable earnings (gross minus legally required deductions - i.e. taxes). Voluntary pre/post-tax deductions do not reduce disposable earnings. Orders are applied in priority order, each capped by its category limit and by remaining net pay.
Disposable earnings
disposable = gross − employee taxes
Per the CCPA (15 U.S.C. 1673), disposable earnings are gross minus legally required deductions. Fintra uses employee taxes; voluntary deductions like 401(k) do not increase the protected amount.
CCPA category caps
| Order kind | Default cap | Priority |
|---|---|---|
| Child support | 60% of disposable (configurable 50/55/60/65) | Highest - applied first |
| Creditor | 25% of disposable | After support |
| Tax levy | Not CCPA-capped; limited to remaining disposable | Applied within remaining room |
A trace for every order
What each garnishment order records
- Requested amount vs the category cap
- Amount actually withheld this period
- Whether the order was capped
- Its priority relative to other orders
Inside Fintra
Garnishment withholding becomes a garnishment-liability payable in the remittance rollup and a credit line in the GL export, so what you withhold is what you remit and what you post.
Frequently asked questions
What are disposable earnings for garnishment?
Gross pay minus legally required deductions - Fintra uses employee taxes. Voluntary deductions like 401(k) do not increase the protected disposable amount under the CCPA.
How does Fintra order multiple garnishments?
By priority, with child support outranking creditor garnishments. Each order is capped by its category limit and by the remaining net pay.
What are the withholding caps?
Child support defaults to 60% of disposable (configurable to 50/55/60/65), creditor garnishments to 25%, and tax levies are limited to remaining disposable earnings.
Is the 30× minimum wage rule applied?
No - that alternative CCPA creditor prong is a documented limitation; Fintra applies the flat 25% prong. Review it against the states you operate in.
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Garnishments, within the law
Process orders post-tax with CCPA caps, priority ordering, and a per-order trace.
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