An employee's disposable earnings is the basis for determining limits on the amount of a garnishment under the CCPS. Disposable earnings are equal to the employee's earnings less deductions required by federal and state laws.

Earnings include: wages, salaries, commissions, bonuses, tips distributed by the employer (i.e. from CC transactions), fair market value of any meals and lodging provided by the employer, and sick pay.

Required deductions include: federal income tax withholding, social security, medicare, state withholding, state unemployment, and local taxes. In addition, if the garnishment required the employee to pay court costs and/or attorney's fees, these are also considered a deduction.

Example: