Oregon Statutes - Chapter 18 - Judgments - Section 18.840 - Wage exemption calculation form.

A wage exemption calculation form must be delivered to the garnishee with each writ of garnishment. A wage exemption calculation form must be in substantially the following form:

______________________________________________________________________________

WAGE EXEMPTION CALCULATION

(to be filled out by employers only)

1.Debtor’s gross wages

for period covered by this

payment............................................. $___

2.Total amount required to be

withheld by law for amount in Line 1

(Federal and state

withholding, Social

Security, etc.)..................................... $___

3.Debtor’s disposable wages

(Subtract Line 2

from Line 1)....................................... $___

4.Normal exemption (Enter 75

percent of Line 3).............................. $___

5.Minimum exemption (check one)

__$183 (payment of wages weekly)

__$366 (payment of wages every two weeks)

__$394 (payment of wages half-monthly)

__$786 (payment of wages monthly)

__$___ (Any other period longer than one week,

including partial payments for less than full pay

period)

(Multiply $183 by number of weeks or

fraction of a week)

6.Wages exempt from garnishment

(Line 4 or 5,

whichever is greater).......................... $___

7.Nonexempt wages (Subtract

Line 6 from Line 3)............................ $___

8.Amount withheld for this pay period

pursuant to a support order under

support withholding process or under

another writ with priority......................... $___

9.Wages subject to garnishment

(Subtract Line 8

from Line 7)....................................... $___

INSTRUCTIONS FOR WAGE

EXEMPTION CALCULATION FORM

If you employ the Debtor named in the writ of garnishment, you must fill out and return this Wage Exemption Calculation form. A Wage Exemption Calculation form must be sent with the first payment you make under the writ. For the 90-day period during which the writ is effective, you must also fill out and return a Wage Exemption Calculation form with a subsequent payment any time the initial calculation changes. Finally, you must fill out and return a Wage Exemption Calculation form with the final payment that you make under the writ.

Normal wage exemption. The wage exemption calculation is based on the amount of the payment you make under the writ of garnishment. The normal wage exemption in Line 4 is 75 percent of the employee’s disposable wages in Line 3.

Minimum wage exemption. The minimum exemption in Line 5 is also based on the amount of the payment you are making. The minimum exemption is designed to ensure that an employee receives at least a certain minimum amount in any one-week period. If the payment is for a one-week period (without regard to whether the period is a calendar week or any other seven-day period), the minimum exemption is $183. The minimum exemption is $366 if the payment is for a two-week period. If the payment is for one-half of one month (i.e., the Debtor is paid twice each month), the minimum exemption is $394. The minimum exemption for a monthly payment is $786.

If the payment you are making is based on some period of time other than one week, two weeks, half month or month, and the payment is for more than one week, you must calculate the minimum exemption by multiplying $183 by the number of weeks covered by the paycheck, including any fraction of a week. You should round the amount calculated to the nearest dollar.

Example 1: You pay Debtor A every 10 days. Each 10-day period is equal to 1.429 weeks (10 divided by 7). The minimum exemption is $262 ($183 ´ 1.429 rounded to the nearest dollar).

You must use this same calculation for computing the minimum exemption when making a payment for less than a full pay period (e.g., for the final payment at the end of the 90-day period covered by the writ).

Example 2: You pay Debtor A on a monthly basis. You are required to make a final payment under a writ of garnishment for the wages owing to Debtor A for the period beginning October 1 and ending October 15. This period is equal to 2.143 weeks (15 divided by 7). The minimum exemption is $392 ($183 ´ 2.143 rounded to the nearest dollar).

The amount of time actually worked by the Debtor during the period covered by the paycheck does not affect the calculation of the minimum exemption.

Example 3: You pay Debtor A on a weekly basis. Debtor A works two days per week. The minimum exemption is $183 for each weekly payment you make for Debtor A.

If the payment you are making is based on a period of time less than one week, the minimum wage exemption may not exceed $183 for any one-week period.

If you receive more than one writ of garnishment. If you receive more than one writ of garnishment for the same debtor, the writs have priority based on the date on which you receive them. If the full amount of wages subject to garnishment for a given pay period is paid on the first writ, you should not make any payment on subsequently received writs until the first writ expires. In some cases, it may be necessary to make payments on two or more writs for the same pay period.

Example 4. You have received two writs of garnishment for Debtor A. You pay Debtor A on a monthly basis. The first writ expires on October 16. The second writ will not expire until November 15. You will need to prepare two wage exemption calculation forms for Debtor A’s October wages and make payments under both writs. The wage exemption calculation form for the first writ will be for the wages attributable to October 1 to October 15 as described in Example 2. The wage exemption calculation form for the second writ will be for all wages for the month of October, but the amounts withheld under the first writ must be subtracted on Line 8 to determine the October wages subject to garnishment under the second writ.

______________________________________________________________________________

[2001 c.249 §63; 2003 c.85 §20; 2007 c.496 §10]

Note: The amendments to 18.840 by section 15, chapter 496, Oregon Laws 2007, become operative January 1, 2009, and apply only to writs of garnishment and notices of garnishment delivered on or after January 1, 2009. See section 18, chapter 496, Oregon Laws 2007. The text that is operative on and after January 1, 2009, is set forth for the user’s convenience.

18.840. A wage exemption calculation form must be delivered to the garnishee with each writ of garnishment. A wage exemption calculation form must be in substantially the following form:

______________________________________________________________________________

WAGE EXEMPTION CALCULATION

(to be filled out by employers only)

1.Debtor’s gross wages

for period covered by this

payment................................................... $___

2.Total amount required to be

withheld by law for amount in Line 1

(Federal and state

withholding, Social

Security, etc.)..................................... $___

3.Debtor’s disposable wages

(Subtract Line 2

from Line 1)....................................... $___

4.Normal exemption (Enter 75

percent of Line 3).............................. $___

5.Minimum exemption (check one)

__$196 (payment of wages weekly)

__$392 (payment of wages every two weeks)

__$420 (payment of wages half-monthly)

__$840 (payment of wages monthly)

__$___ (Any other period longer than one week, including partial

payments for less than full pay period) (Multiply $196 by

number of weeks or fraction of a week)

6.Wages exempt from garnishment

(Line 4 or 5,

whichever is greater).......................... $___

7.Nonexempt wages (Subtract

Line 6 from Line 3)............................ $___

8.Amount withheld for this pay period

pursuant to a support order under

support withholding process or under

another writ with priority......................... $___

9.Wages subject to garnishment

(Subtract Line 8

from Line 7)....................................... $___

INSTRUCTIONS FOR WAGE

EXEMPTION CALCULATION FORM

If you employ the Debtor named in the writ of garnishment, you must fill out and return this Wage Exemption Calculation form. A Wage Exemption Calculation form must be sent with the first payment you make under the writ. For the 90-day period during which the writ is effective, you must also fill out and return a Wage Exemption Calculation form with a subsequent payment any time the initial calculation changes. Finally, you must fill out and return a Wage Exemption Calculation form with the final payment that you make under the writ.

Normal wage exemption. The wage exemption calculation is based on the amount of the payment you make under the writ of garnishment. The normal wage exemption in Line 4 is 75 percent of the employee’s disposable wages in Line 3.

Minimum wage exemption. The minimum exemption in Line 5 is also based on the amount of the payment you are making. The minimum exemption is designed to ensure that an employee receives at least a certain minimum amount in any one-week period. If the payment is for a one-week period (without regard to whether the period is a calendar week or any other seven-day period), the minimum exemption is $196. The minimum exemption is $392 if the payment is for a two-week period. If the payment is for one-half of one month (i.e., the Debtor is paid twice each month), the minimum exemption is $420. The minimum exemption for a monthly payment is $840.

If the payment you are making is based on some period of time other than one week, two weeks, half month or month, and the payment is for more than one week, you must calculate the minimum exemption by multiplying $196 by the number of weeks covered by the paycheck, including any fraction of a week. You should round the amount calculated to the nearest dollar.

Example 1: You pay Debtor A every 10 days. Each 10-day period is equal to 1.429 weeks (10 divided by 7). The minimum exemption is $280 ($196 ´ 1.429 rounded to the nearest dollar).

You must use this same calculation for computing the minimum exemption when making a payment for less than a full pay period (e.g., for the final payment at the end of the 90-day period covered by the writ).

Example 2: You pay Debtor A on a monthly basis. You are required to make a final payment under a writ of garnishment for the wages owing to Debtor A for the period beginning October 1 and ending October 15. This period is equal to 2.143 weeks (15 divided by 7). The minimum exemption is $420 ($196 ´ 2.143 rounded to the nearest dollar).

The amount of time actually worked by the Debtor during the period covered by the paycheck does not affect the calculation of the minimum exemption.

Example 3: You pay Debtor A on a weekly basis. Debtor A works two days per week. The minimum exemption is $196 for each weekly payment you make for Debtor A.

If the payment you are making is based on a period of time less than one week, the minimum wage exemption may not exceed $196 for any one-week period.

If you receive more than one writ of garnishment. If you receive more than one writ of garnishment for the same debtor, the writs have priority based on the date on which you receive them. If the full amount of wages subject to garnishment for a given pay period is paid on the first writ, you should not make any payment on subsequently received writs until the first writ expires. In some cases, it may be necessary to make payments on two or more writs for the same pay period.

Example 4. You have received two writs of garnishment for Debtor A. You pay Debtor A on a monthly basis. The first writ expires on October 16. The second writ will not expire until November 15. You will need to prepare two wage exemption calculation forms for Debtor A’s October wages and make payments under both writs. The wage exemption calculation form for the first writ will be for the wages attributable to October 1 to October 15 as described in Example 2. The wage exemption calculation form for the second writ will be for all wages for the month of October, but the amounts withheld under the first writ must be subtracted on Line 8 to determine the October wages subject to garnishment under the second writ.

______________________________________________________________________________

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Last modified: August 7, 2008