Sage HRMS Garnishment Manager Version 10.7.3 supports Head of Household Exemptions
April 10, 2017
Mary van Balen
Calculating garnishments is always complicated. Sage HRMS Garnishment Manager (Garnishment Manager) does it for you, and our new release, Version 10.7.3, includes a feature that applies the Head of Household exemption for qualifying employees.
Information on this enhancement and other modifications made in Version 10.7.3 are described in the Release Notes, available on our Software Manuals page.
Head of Household exemption
A “head of household” is defined as the one providing primary financial support (usually over 50%) for a household or family. To qualify for this designation, a person doesn’t have to be the biological mother or father of members of the household, and in some states, needn’t be related.
This exemption allows qualifying employees to retain more of their disposable income, with the intention of preventing a family or household from suffering major financial hardship as a result of creditor garnishment of wages.
Since Head of Household exemptions are not included in the federal Consumer Credit Protection Act, they exist only at the state level. Not all states provide them, and those that do, vary in the wage amount protected. Florida, for example, provides 100% protection. Missouri shields 90% of a head of household’s disposable income.
How to claim Head of Household exemption
If an employee thinks they qualify for this exemption, they must check their state’s laws to determine if it provides this protection, and if so, how to claim it.
How Garnishment Manager can help
With this new release, Garnishment Manager can apply the additional exemption to a qualifying employee. If you use Garnishment Manager and have an employee who qualifies, contact us and make your garnishment process even simpler.
Mary van Balen is based out of Columbus, Ohio and is a writer for Delphia Consulting. Mary contributes to the Delphia blog on Human Resources issues and Delphia Consulting and Sage product related updates.