How to Determine Wage Garnishment Percentage in North Carolina
North Carolina law does not permit the courts to issue garnishment orders for creditors. Garnishment orders are only issued to collect debt owed to government agencies, such as the Internal Revenue Service, student loan services, back child support, alimony and ambulatory services. These agencies are only allowed to garnish up to 25 percent of your disposable earnings each pay period. To determine the exact wage garnishment percentage that is applicable to your situation, you need a recent pay stub.
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Instructions
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Look at the “Net” income amount that appears on the pay stub. The Net amount is the total amount of your paycheck after all deductions (including the garnishment) and taxes are paid. For example, before taxes, your gross income is $1,500. After taxes, only $1,395 remains.
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Look at the pay stub to determine the amount that was garnished from the check. Write down this amount.
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Calculate your new net total. To do this, add the garnishment amount to the net income amount. For instance, if the paycheck stub shows a garnishment of $300, your new net total is $1,695 ($1,395 + $300).
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Divide the garnishment amount by the new Net total to determine the wage garnishment percentage. For example, $300 ÷ $1,695 = 0.177, which is a 17 percent garnishment. If your final net total is $1,695, and the garnishment amount is $423.75, the garnishment percentage is the full 25 percent ($423.75 ÷ $1,695).
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