This page does not have information about orders to withhold earnings to pay child support, spousal support, or taxes.
If you received form WG-004orform FL-435, follow the instructions on those forms. If you received form WG-022, the Franchise Tax Board has instructions for you.
ON THIS PAGE:
- First steps to take when you receive the order
- When to start withholding
- How much to withhold
- What to do if you receivedmore than 1 order for the same employee
- When and where to send the money
- When to stop withholding
- Legal warnings and where to get help
First steps to take when you receive the order
The sheriff or levying officer will have given the employer
- The original and one copy of the earnings withholding order
- TheEmployer’s Return(form WG-005)
- TheEmployee Instructions(form WG-003)
- TheClaim of Exemption(form WG-006)
- TheFinancial Statement(form WG-007)
When you get these forms
Write down when you received the order. You will need this date to calculate multiple deadlines, like how long you have to send information to the employee and sheriff, and when to start withholding money.
Give forms to the employee (if they currently work for you). Within 10 days of receiving the order, give the employee:
- A copy of theEarnings Withholding Order(form WG-002orform WG-030)
- Employee Instructions(form WG-003)
- Claim of Exemption(form WG-006)
- Financial Statement(form WG-007)
If the employee does not work for you or no longer works for you, you do not need to send them the forms. Fill out form WG-005 indicating that you do not employ the person. Return it to the sheriff.
Fill out and return form WG-005 to the sheriff. Within 15 days of receiving the order, fill out both copies of theEmployer’s Return(form WG-005) and return them to the sheriff.
When to start withholding
Count 10 days after you received the order. Start withholding on the 1st pay period that ends on or after that day.If the employee’s pay period ends before the 10th day, do not withhold any earnings for that pay period.
There are some situations when you do not start withholding. For example:
- The employee does not work for you any more (or never did)
- You already withholdthe maximum amount under another order with the same or higher priority
There could be other reasons. In these situations, fill out and return theEmployer’s Return(form WG-005) to the sheriff.
How much to withhold
State law limits how much you can withhold from each paycheck
You need to calculate this amount so you do not exceed it. The maximum amount to withhold (if any) is thelesserof two amounts:
- Amount 1: 20% of the employee’s disposable earnings for the week
- Amount 2: 40% of the difference between the employee’s disposable earnings for that week and the applicable minimum wage for that week.
To calculate these amounts, you need to know what your employee's disposable income is and what the minimum wage is where they work.
Disposable earnings
Earnings are money paid by an employer to an employee for work done by the employee.
Earnings include wages, salary, commissions, bonuses, sick or vacation pay, but generally not tips. Learn more
Earning may be called wages, salary, commissions, bonuses, or some other name. Vacation and sick pay are included because they are paid by the employer to the employee. Tips are usually not included because they are not paid by the employer.
Disposable earnings are money paid to the employee after taking out the deductions required by law. Generally, these required deductions are federal and state income tax, Social Security, Medicare, other state or local taxes, and any mandatory payments to public employee retirement systems.
To calculate disposable earnings, subtract the required deductions from the employee's earnings. An employee’s disposable earnings will change when the employee’s pay rate changes or the amounts of required deductions change.
Minimum wage where the employee works
You need to know the minimum wage in the area where the employee works. This will be either the state minimum wage or a local minimum wage if the city or county where the employee works has its own higher minimum wage. These amounts can change every year.
Get state and local minimum wages
How to calculate the maximum amount you can withhold
The calculations depend on what the minimum wage is where the employee works.
If the state minimum wage is not the applicable minimum wage
You can use the Earnings Withholding Order Calculator or, follow the steps below:
Step1: Calculate the applicable minimum wage for your pay period.
- If you pay every day or every week, multiply the hourly minimum wage by 48
- If you pay every two weeks (biweekly), multiply the hourly minimum wage by 96
If you pay twice a month (semimonthly), multiply the hourly minimum wage by 104
- If you pay every month, multiply the hourly minimum wage by 208
Step 2: Subtract the applicable minimum wage for your pay period (the amount from Step 1) from the employee’s disposable earnings for that pay period.
Step 3: If the amount from Step 2 is zero or less than zero, do not withhold any money from the employee’s earnings. You are done with the calculation.
Step 4: If the amount from Step 2 is more than zero, multiply that amount by 40 percent (0.4). This is Amount 2, above.
Step 5: Multiply the employee’s disposable earnings by 20 percent (0.2). This is Amount 1, above.
Step 6: Compare the amount from Step 4 (Amount 2) and the amount from Step 5 (Amount 1). The lesser amount is the maximum you can withhold. If there is no order of higher priority, this is the amount to withhold.
Step 7: If the employee’s earnings are subject to another order of higher priority, subtract that amount from the Step 6 maximum withholding amount. If the difference is zero or less than zero, do not withhold any more money from the employee’s earnings. If the difference is more than zero, withhold that amount.
Need more help? See 2 examples of how to do the calculations.
Example 1: Minimum wage is $17.00 per hour
Facts:You pay every week, the employee’s disposable earnings for the week are $900.00, the minimum wage is $17per hour, and there is no other order of higher priority.
1. For a weekly pay period, multiply $17x 48= $816.00
2. Disposable earnings minus applicable minimum wage: $900- $816= $84.00
3. The amount in Step 2 is more than zero.
4. Multiply the amount in Step 2 by 40 percent: 84x 0.4= $33.60
5. Multiply the disposable earnings by 20percent: $900x 0.20= $180.00
6. The amount from Step 4 ($33.60) is lower than the amount from Step 5 ($180.00), so $33.60 is the maximum withholding amount.
7. There is no order of higher priority, so the correct amount to withhold is $33.60.
Example 2: Minimum wage is $16.30, There is an order of higher priority
Facts: You pay once a month, the employee’s disposable earnings for the pay period are $4,600.00, the minimum wage is $16.30 per hour, and there is a higher priority support orderthat requires you to withhold $200.00 per month from this employee’s earnings.
1. For a monthly pay period, multiply $16.30 x by 208 = $3,390.40
2. Disposable earnings minus applicable minimum wage: $4,600 - $3,390.40 = $1,209.60
3. The amount in Step 2 is more than zero.
4. Multiply the amount in Step 2 by 40 percent: $1,209.60x 0.4= $483.84
5. Multiply the disposable earnings by 20percent: $4600 x 0.2= $920.00
6. The amount from Step 4 ($483.84) is lower than the amount from Step 5 ($920.00), so $483.84is the maximum withholding amount. There is an order of higher priority, so goto Step 7.
7. The maximum withholding amount minus the higher priority order amount: $483.84- $200 = $283.84. The correct amount to withhold, in addition to the higher priority order amount, is $283.84.
If the state minimum wage ($16 per hour) is the applicable minimum wage
Maximum Withholding by Pay Periodbased on State Minimum Wage of $16 per Hour
| Daily or Weekly | Every Two Weeks | Twice a Month | Monthly | |
|---|---|---|---|---|
| If they earn | $768.00 or less in a workweek | $1,536.00 or less | $1,664.00or less | $3,328.00or less |
| The maximum employer can withhold | None | None | None | None |
| If they earn | From $768.01to $1536.00 | From $1,536.01to $3,072.00 | From $1,664.01to $3,328.00 | From $3,328.01to $6,656.00 |
| The maximum employer can withhold | 40% of the amount above $768.00 | 40% of the amount above $1,536.00 | 40% of the amount above $1,664.00 | 40% of the amount above $3,328.00 |
| If they earn | $1,536.01 or more | $3,072.01 or more | $3,328.01or more | $6,656.01or more |
| The maximum employer can withhold | 20% of disposable earnings | 20% of disposable earnings | 20% of disposable earnings | 20% of disposable earnings |
What to do if you received more than 1 order
You could receive more than one order affecting the earnings of the same employee. There are several different types of orders that affect an employee’s earnings. Different types of orders have different priorities. In some cases, you may need to pay under multiple orders.
You must comply with the order with the highest priority
In order from highest priority to lowest:
- An earnings assignment order for support (for example, form FL-435)
- Earnings Withholding Order for Support(form WG-004)
- Earnings Withholding Order for Taxes(form WG-022)
- Earnings Withholding Order for Elder or Dependent Adult Financial Abuse(form WG-030)
- Earnings Withholding Order(form WG-002)
If you're already complying with one type of earnings withholding order, and then you receive a different type of order that is higher on the priority list, you must comply with the higher priority order first.
If you have to stop withholding earnings under one order because you receive a higher priority order, you must contact the sheriff who sent you the earlier order and tell them that you have received a higher priority order.
If the orders have the same priority, comply with the earnings withholding order you received first
In general, if you receive twoEarningsWithholdingOrders(form WG-002) or twoEarnings Withholding Orders for Elder or Dependent Adult FinancialAbuse(form WG-030):
- Comply withthe order you received first. The other order is ineffective. Send it back to the sheriff.
- If you received the orders on the same day, look at both orders, find the date of the judgment for each one, and first comply with the order that has the earlier judgment date. If they have the same judgment date,you can choose which order you will comply with. The other order is ineffective. Send it back to the sheriff.
example: ORder higher priority
You're withholding earnings from an employee based on anEarningsWithholdingOrder(form WG-002). You receive anEarnings Withholding Order for Elder or Dependent AdultFinancial Abuse(form WG-030) for the same employee.
You must now comply with theEarnings Withholding Order for Elder or Dependent Adult Financial Abusebecause it has higher priority under the law. Notify the sheriff who gave you the earlier order that you received an order of higher priority.
example: Orders same priority
You're withholding earnings from an employee based on anEarnings Withholding Order for Elder or Dependent AdultFinancial Abuse(form WG-030). You receive anotherEarnings Withholding Order for Elder or Dependent AdultFinancial Abuse(form WG-030) for the same employee.
You must continue to comply with the firstEarnings Withholding Order for Elder or Dependent Adult Financial Abusebecause you received it before the other order of the same priority.
How to calculate how much you can withhold
You may need to withhold earnings under two different orders if the higher priority order does not require you to withhold the maximum amount of disposable earnings. See the section above titledHow Much to Withhold, which explains how to calculate the maximum amount of disposable earnings that may be withheld from an employee’s disposable earnings per pay period.
Generally, if the higher priority order requires you to withhold less than the maximum amount of disposable earnings, then you must also withhold earnings under the lower priority order. The amount to withhold under the lower priority order is the difference between the maximum amount and the amount under the higher priority order.
When and where to send the money
You must pay the money you withhold from the employee’s earnings to the sheriff by the 15th day of the month after each payday. If you want to make payments more often than once a month, you must make each payment within 10 days after each pay period ends.
You may deduct $1.50 from the employee’s earnings for each payment you make under the earnings withholding order.
To help ensure payments are applied to the correct account: Includethe case number, the sheriff’s file number (if it's different from the case number), and the employee’s name on the payments.
When to stop withholding
Stop withholding when either:
- The court tells you in writing to stop withholding
- The sheriff tells you in writing to stop withholding
- You have withheld the total amount due, as stated in the order, plus the additional amount for costs and interest
You might have to stop withholding earnings before the total amount has been withheld if either:
The employee stops working for you, either temporarily or permanently. Learn more
If you stop withholding because the employee stops working for you or is out on leave, notify the sheriff who gave you the order. Do not return the order to the sheriff. The earnings withholding order is valid until 180 consecutive days have passed with no money withheld under that order from that employee’s earnings. If the employee returns to work and a pay period ends before 180 days have passed, the earnings withholding order is still valid and you must resume withholding earnings under that order.
Or
You get an order with a higher priority, like a support or tax withholding order. Learn more
If you stop withholding under an earnings withholding order because you receive an order of higher priority for the same employee, notify the sheriff but do not return the order. In these situations, the earnings withholding order ends after no money is withheld under that order for a continuous two-year period. If withholding under the higher priority order ends and it has not yet been two years since any money was withheld under the prior (lower priority) earnings withholding order, the prior earnings withholding order is still valid and you must resume withholding earnings under that order.
When an earnings withholding order ends, return it to the sheriff and explain in writing why you are returning it.
Legal warnings and where to get help
It is illegal to:
- Fire an employee because of earnings withholding orders for the payment of only one judgment. This is true even if you receive several earnings withholding orders for the same employee if those orders all relate to the same judgment.
- Postpone or advance an employee's earnings to avoid complying with an earnings withholding order. The employee’s pay period must not be changed to prevent the order from taking effect.
- Not turn the withholdings over to thesheriff. Your duty is to pay the money to the sheriff, who will pay the money according to the law.
If you violate any of these laws, you may have to pay money and criminal charges may be filed against you.
Where to find out more about the laws
California wage garnishment law is contained in theCode of Civil Procedurebeginning with section 706.010. Sections 706.022, 706.025, 706.050, and 706.104 explain the employer’s duties.
Federal wage garnishment law and federal rules provide the basic protections on which the California law is based. For more information, visit the U.S. Department of Labor’sWage and Hour Division Website, or call 1-866-4-USWAGE (1-866-487-9243).
