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Wage garnishment is a legal technique used to collect money from a person's paycheck in order to pay a debt. Wage garnishments are court-ordered deductions taken from an employee's pay to satisfy a debt or legal obligation.Wage garnishment lets creditors get repayment directly from your paycheck or bank account, usually the result of a court judgment. IRS wage garnishment and levy paperwork will walk you through the steps of completing the wage garnishment. Follow steps 57 to calculate the total garnishment amount. 5. Enter total Amounts Withheld Under Other Wage Withholding Orders with Priority. Wage garnishment is a court procedure where a court orders a debtor's employer to hold the debtor's earnings in order to pay a creditor. The IRS would receive the entire bonus since the exempt amount is based on the timeperiod that your wages and bonus are paid. Disposable earnings (or more, if the debtor earns more than. 40 times minimum wage).