You can use Manage Deductions to create deductions to handle garnishment of wages, such as child support payments.
Garnishments are based on disposable income, which is calculated by subtracting system deductions (taxes) from gross wages.
These instructions include only fields specific to garnishment deductions. See Add a deduction or benefit for instructions on fields not described below.
While in the Manage Deductions window, click the Add button, and the Deductions Details window opens.
Complete the Primary Deduction Information fields as described. Required fields are marked with a red asterisk (*).
Type: Select Deduction.
Calculation: Most garnishments use Fixed Amount.
Deduct Order: Select Post Tax.
Default: Leave the box unchecked.
Variable: Check the box to allow the deduction to be modified for each employee.
Priority: Enter 0 to ensure that garnishment deductions are deducted in front of other voluntary deductions.
Complete the Employee Information fields as described. Use these fields to specify the employee responsibility for this deduction.
Pay Period Amount or Percent: If this deduction/benefit is variable, this field is optional. If you enter a value, it will be displayed as a default that can be modified when you assign this deduction to an employee.
Based On: This field is available only for deductions/benefits using the Percentage calculation method and determines the base amount for the calculation. Select Disposable Income if the garnishment deduction has the Percentage calculation method.
Period % Cap: This field is used only with deductions based on disposable income. The number entered here tells the system the maximum percentage that can be deducted from the employee’s pay for the pay period.
Affects Disposable Income: Check this box.
Click the Save button. Once the deduction has been saved, it must be enabled before it can be assigned to employees.
Continue to Enabling a Deduction or Benefit
Return to Add a deduction or benefit
Return to Manage Deductions Overview