If you’re dealing with a child support order, either as a parent making payments or as someone collecting them, it’s vital to know the rules surrounding wage garnishment in Colorado.
These rules determine how much can be deducted from someone’s paycheck to cover child support obligations.
Knowing the rules around wage garnishment can help you avoid stress and make sure payments are handled fairly and legally. Let’s break down what you need to know about child support garnishment limits in Colorado.
What is Wage Garnishment?
Wage garnishment means that part of your paycheck is taken out to cover debts, like child support.
In Colorado, wage garnishment for child support usually happens through a court order or income withholding order Colorado (IWO). Your employer will be responsible for deducting the required amount and sending it to cover the child support payments
Now, a common question we get is, “Can my employer charge me for processing these garnishments?” Yes, under Colorado law, employers can charge a small fee for managing wage garnishments.
However, this fee is capped at $5.00 per payment, according to C.R.S. 14-14-111.5 (16.7). The good news is that, based on our experience, most employers don’t bother charging this fee.
Colorado Garnishment Limits
Now let’s talk about the actual limits on how much can be garnished from your wages for child support. Colorado uses federal rules to decide how much of your paycheck can be garnished for child support payments.
Federal Limits
Here’s the breakdown of the federal maximum garnishment limits that Colorado follows:
- If you’re supporting another spouse or child, up to 50% of your disposable earnings can be garnished.
- If you’re not supporting another spouse or child, that number goes up to 60%.
- If you’re more than 12 weeks behind on payments (also called arrears), an additional 5% can be added to the garnishment amount.
These limits apply only to your “disposable earnings,” which we’ll explain further below.
Colorado-Specific Guidelines
While the federal rules apply, Colorado has some additional guidelines that help clarify the garnishment process. For instance, child support garnishments take priority over most other types of wage attachments—except for IRS tax levies.
It’s also important to note that the 50% and 60% limits mentioned above apply to your disposable income, not your total earnings.
Calculating Disposable Earnings
So, what exactly are “disposable earnings”? Disposable earnings are what’s left of your paycheck after mandatory deductions are taken out. Here’s a quick breakdown:
- Start with your gross pay, which includes overtime, bonuses, and any other earnings.
- Subtract the following deductions:
- Federal, state, and local taxes
- Medicare contributions
- Public Employees’ Retirement Association (PERA) contributions (important for many public employees in Colorado)
- Voluntary health insurance premiums (which may reduce your disposable income)
Once these deductions are made, what’s left is your disposable income—the amount used to calculate how much can be garnished for child support.
Why isn’t the full child support amount always garnished each month?
You might notice that the amount of child support taken out of each paycheck isn’t always the same.
The reason? Garnishment calculations are done based on each paycheck, which means that if you’re paid bi-weekly instead of twice a month, the amount withheld can vary slightly from check to check.
For example, if you’re paid bi-weekly (every two weeks), your salary is divided into 26 paychecks a year. But if you’re paid twice a month, it’s divided into 24 paychecks. That difference can cause slight variations in the amount withheld each time, even if the total garnished over the year is consistent.
Multiple Income Withholding Orders
When multiple income withholding orders are in place, prioritization is key to ensuring that child support obligations are met first.
In Colorado, child support garnishments come first, even before most other debts—including those for unpaid debts, medical bills, or even tax levies (with the exception of IRS tax levies).
If you have multiple garnishments—like for child support and unpaid debts—your employer will make sure child support gets paid first before addressing any other obligations.
However, complications can arise when the total amount of all garnishments exceeds the legal limit, which is typically 50-60% of your disposable income, depending on your circumstances.
If that happens, employers are required to distribute the withheld funds proportionally among the different orders.
For example, if the child support garnishment and another debt garnishment together exceed the maximum allowable amount, your employer will split the available garnished income between these orders based on the proportion of each obligation.
It’s important to note that if there isn’t enough disposable income to cover all garnishments, child support will always be the first to be satisfied.
If multiple child support orders exist, the employer will divide the garnished amount proportionally among those orders as well, ensuring that each one gets a fair share.
Wage Assignment for Child Support
Another topic that comes up frequently is wage assignment, which is similar to garnishment but can sometimes be voluntary.
A wage assignment is when child support is automatically taken from your paycheck, but there’s not much you can do to stop it. If payments start coming in late, wage assignment is usually enforced.l
Colorado law generally favors wage assignments to ensure child support is paid on time.
There are exceptions, though. If you and your ex have a written agreement for an alternative payment method, or if you can prove that a wage assignment isn’t in the best interest of the child, you might be able to avoid it.
But, if payments start getting late, a wage assignment will probably be enforced.
Protecting Your Rights
Knowing your rights and obligations when it comes to child support garnishment is key. Garnishment orders aren’t always perfect—they can be challenged if the calculations are incorrect, or if your financial circumstances change.
If you think there’s been a mistake, or if your financial situation changes, talking to a family law attorney can make a big difference. Seek help whether you’re the one payment paying or the one receiving child support.
Facing Child Support Garnishment in Colorado? We Can Help.
Child support issues can be overwhelming. Whether you’re facing a garnishment order or you need help enforcing a child support payment, we’re here for you. At Jones Law Firm, PC, our dedicated Denver family law attorneys have years of experience and are committed to protecting your rights. Let us guide you through the complexities of child support law, so you don’t have to face it alone. Contact us today at 720-513-5983 for a consultation, and let us help you move forward with confidence.