Canadian Payroll Reporter

SEPTEMBER 2013 Garnishments must remain confidential: Expert Continued from page 1 An employer might receive a garnishment notice after a judgment has been rendered against the employee. This means a creditor has sued the employee and a judge has agreed the employee owes the debt. The employer, often referred to as the garnishee in court-ordered garnishment notices, then deducts the amount of the wage garnishment from the paycheque of the employee — normally referred to as the debtor. The garnishment continues until the debt is fully paid off. "The money gets paid to the court, so employers don't need to worry about being taking advantage of," he says. An employee's wages could also be garnished to the Canada Revenue Agency (CRA) or Revenue Quebec. "This is usually when the person might owe taxes," says Linda Scott, a consultant with Carswell's payroll consulting hotline in Toronto. "It could be because they're acting on behalf of Service Canada… or it could be that perhaps the pension was overpaid." Employer obligations "First and foremost, you've got to remember that this is confidential," Scott says. "You do not want people to know about this." Acknowledging an employee's wages are being garnished may lead to unjust treatment in the future, Scott says. As a result, employers cannot terminate or discipline an employee in any way because they may have one or more garnishments. "A lot of employers used to look at it in the past and say, 'Well, if you can't manage your money, how can you manage your job?'" she says. "You can't do that anymore. It's protected by law now." Continued on page 8 ■ PROVINCIAL BREAKDOWN Guidelines for exemptions Alberta • Minimum monthly earnings exemption is $800, plus $200 per dependent • Maximum monthly earnings exemption is $2,400, plus $200 per dependent • Maintenance orders — 60 per cent of the employee's gross amount of remuneration each month are exempt. If the employee's gross remuneration is $15,000 or less, employers may get permission to increase the exemption to 80 per cent British Columbia • 70 per cent of wages protected • Maintenance orders — will depend on the type of order (tax deductible or not), type of payment to the employee, and pay period frequency Manitoba • 70 per cent of wages protected • Maintenance orders — $250 per month New Brunswick • 100 per cent protected • Maintenance orders — no specific amounts exempted Newfoundland and Labrador • $1,019 protected for employees supporting a spouse or cohabiting partner • $1,059 protected for employees supporting a spouse or co-habiting partner and one dependant, $47 for each subsequent dependent • $963 monthly, plus $47 for each subsequent dependent in excess of one • Maintenance orders — no specific amount defined, depends on marital status, dependents Northwest Territories • 70 per cent protected • Maintenance orders — 50 per cent protected. If amount is less than $600 per month, then $600 per month is exempt, plus $80 for each dependent child 2 CPR September 2013.indd 2 Nova Scotia • 85 per cent is protected • Maintenance orders — determined by court Nunavut • $1,500 monthly protected, plus $300 per dependent • 70 per cent of the employee's net pay, up to $3,500 per month, plus $300 per month for each dependent, whichever is higher • Payment orders for support — 50 per cent of net salary or wages Ontario • 80 per cent of net wages protected • Maintenance orders — 50 per cent of net wages Prince Edward Island • Garnishments determined by court • Maintenance orders — no set exemption Quebec • 70 per cent of wages in excess of $180 per week protected, plus $30 per week for each dependant in excess of two, for employees who are supporting a spouse, have a dependent or are the main support of a relative. In all other cases, 70 per cent of wages exceeding $120 are exempt • Maintenance orders — 50 per cent of gross wages Saskatchewan • $500 per month protected, plus $100 for each dependant • Maintenance orders — courts can decide exemptions Yukon • 70 per cent of net wages protected, provided the amount exempted is not less than $600 per month for a single employee. For an employee supporting one to three dependants, the amount exempted on a monthly bases must not be less than $1,000. If the employee is supporting at least four dependants, the minimum monthly exemption begins to increase by $150 per month. • Maintenance orders —no specific amount exempted Canadian HR Reporter, a Thomson Reuters business 2013 13-08-28 10:20 AM

• Cover