Kansas Department of Administration

97-R-006 Garnishment Calculation and Missouri UCI Changes

Posted on October 21, 2021 at 12:50 PM by Kansas Department of Administration

DATE: October 14, 1996
SUBJECT: Garnishment Calculation and Missouri UCI Changes
EFFECTIVE DATE: Paychecks issued on or after October 18, 1996
A & R CONTACT: Payroll Services (785) 296-3146
APPROVAL:
SUMMARY: Revised Garnishment Calculations and Changes to the Calculation for Missouri Unemployment Compensation Insurance

Effective October 1, 1996, the Federal government mandated a minimum wage increase to $4.75 an hour. Due to this increase, the calculations for garnishments have changed. The guidelines listed below should be followed for calculating the garnishment withholdings on a biweekly basis.
  1. If the employee's disposable earnings are less than $285.00 for a biweekly pay period, pay the employee as if the employee's paycheck were not garnished.
  2. If the employee's disposable earnings are between $285.00 and $380.00 for a biweekly pay period, pay the employee $285.00.
  3. If the employee's disposable earnings are more than $380.00 for a biweekly pay period, pay the employee 75% of the disposable earnings.

Effective October 1, 1996, the state of Missouri no longer considers employee contributions to IRS Section 125 plans to be reportable wages for state unemployment insurance purposes. Therefore, Section 125 deductions should not reduce wages for purposes of calculating unemployment compensation insurance for the State of Missouri. Section 125 covers pre-tax health insurance and flexible spending account deductions.

Regents institutions are responsible for ensuring that these changes are reflected in all payroll warrants issued on or after October 18, 1996 (ie., payroll period ending October 5, 1996).

SAM:LK:sj

 


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