Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 18 - JUDGMENTS, EXECUTION AND GARNISHMENT
Section 150-018-0020 - Oregon Department of Revenue Other Agency Account Garnishments

Universal Citation: OR Admin Rules 150-018-0020

Current through Register Vol. 63, No. 9, September 1, 2024

(1) Under ORS 293.250, the Department of Revenue may render assistance to recover delinquent debts owed to any entity listed under ORS 293.250(2) that is assigned by the entity to the department for collection, including actions to continuously garnish up to 25 percent of an employee's disposable earnings.

(2) Under ORS 18.385(4), nonexempt disposable earnings are reduced by an order to withhold child or spousal support under ORS 25.378, 419B.408 or 419C.600 or ORS chapter 110. The maximum disposable earnings subject to garnishment for the period is determined under ORS 18.385(2)(a) - 18.385(2)(e), minus any amount required to be withheld from an individual's disposable earnings for the period pursuant to an order to withhold child or spousal support. The order to withhold child or spousal support may reduce the amount available for garnishment to zero.

(3) Under ORS 18.385(2)(a) - 18.385(2)(e), the nonexempt disposable earnings subject to garnishment for the period is calculated by reducing the individual's disposable earnings for that period by the amount of disposable earnings exempt from garnishment. The amount of disposable earnings exempt from garnishment is the greater of 75 percent of the disposable earnings for the period under ORS 18.385(1) or the minimum exemption amount under ORS 18.385(2)(a) - 18.385(2)(e).

Example 1 : Paul has $1,000 per week of disposable earnings. Paul owes child support totaling $15,000. An order to withhold for child or spousal support under ORS 25.378 has been issued to Paul's employer directing the employer to withhold a specified amount of $225 from Paul's disposable earnings. Paul also owes a state agency for a delinquent student loan totaling $5,000 (a state non-tax debt). The department has garnished Paul's employer for 25 percent of disposable earnings. The employer would calculate and pay the order to withhold for child or spousal support and the garnishment as follows:
(A) Disposable earnings - A - $1,000

(B) Minimum weekly exemption - B - $254

(C) 75 percent of disposable earnings - C - $750

(D) Earnings exempt from garnishment (greater of B or C) - D - $750

(E) Nonexempt earnings subject to garnishment (A minus D) - E - $250

(F) Order to withhold specified amount of $225 for child or spousal support - F - $225

(G) Disposable earnings subject to garnishment (E minus F) - G - $25

Although the department has issued a 25 percent garnishment that would normally return $250, because of the order to withhold for child or spousal support, the amount available on the state non-tax debt garnishment is limited to $25.

Example 2: Assume the same facts as in Example 1, except that the order to withhold child or spousal support is $350. The employer would calculate the order to withhold child or spousal support and garnishment as follows:
(A) Disposable earnings - A - $1,000

(B) Minimum weekly exemption - B - $254

(C) 75 percent of disposable earnings - C - $750

(D) Earnings exempt from garnishment (greater of B or C) - D - $750

(E) Nonexempt earnings subject to garnishment (A minus D) - E - $250

(F) Order to withhold specified amount of $350 for child or spousal support - F - $350

(G) Disposable earnings subject to garnishment (E minus F) - G - ($100)

Since line (F) is greater than line (E), resulting in a negative number for line (G), the amount available for the non-tax debt garnishment is zero.

Example 3: John has $290 per week disposable earnings. John owes a state agency for a delinquent student loan totaling $5,000 (a state non-tax debt). The department has garnished John's employer for 25 percent of disposable earnings. John is not under an order to withhold for child or spousal support. The employer would calculate and pay the garnishment as follows:
(A) Disposable earnings - A - $290

(B) Minimum weekly exemption - B - $254

(C) 75 percent of disposable earnings - C - $217.50

(D) Earnings exempt from garnishment (greater of B or C) - D - $254

(E) Nonexempt earnings subject to garnishment (A minus D) - E - $36

(F) Order to withhold for child or spousal support - F - $0

(G) Disposable earnings subject to garnishment (E minus F) - G - $36

Statutory/Other Authority: ORS 305.100

Statutes/Other Implemented: ORS 18.385 & 293.250

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