Garnishments

For child support check lines, the source amount is disposable earnings, the rate is the maximum percentage (which prorates the deduction amount by a specified ratio), and the result is produced by the Garnishment.Deduction expression.

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees > Records > Garnishments folder.
2. Click . The New Garnishment window opens.

   

3. Enter the code for the Employee whose wages are being garnished.
4. Enter a Description of the garnishment.
5. Enter the Case Number assigned by the court to the garnishment.
6. Enter the date the withholding order was Received.
7. From the Type drop-down list, select "Child Support".

   

8. In the Start field, enter the date to start withholding for the garnishment. This date serves as the Begin Date of the employee automatic associated with the garnishment.
9. If you know the date when withholding will end, enter that date in the Stop field. This date serves as the End Date of the employee automatic associated with the garnishment.
10. In the PRCode field, select the PRCode to assign to the garnishment.

11. If you have the PR to AP interface enabled, an AP Control field is visible. Enter the AP control to use for posting from Payroll to Accounts Payable.

    Note

    Ensure that the AP control you select is NOT taxable.

12. From the State drop-down list, select the state for the withholding order.
13. The FIPS Code field defaults to the generic Federal Information Process Standard (FIPS) code for the state you selected (i.e., the two-character state code followed by three 0s). If the state of the withholding order requires a more specific FIPS code for the child support agency handling payments, enter the appropriate code. FIPS codes with both state and county codes have five characters; codes with state, county, and local codes have seven characters. You can find the FIPS code on the garnishment order. The FIPS code is copied to the EFT file and can be printed on AP checks.
14. In the Maximum % field, enter the maximum percentage that can be withheld from the employee's pay for this garnishment. This is a required field. The default value is 50% but can be changed.

    Note

    50% is not always the correct maximum percent. According to the federal Consumer Credit Protection Act (CCPA), the following maximum percents apply:

    • 50% if the employee is supporting another spouse/children.
    • 55% if the employee is supporting another spouse/children and is in arrears.
    • 60% if the employee is not supporting another spouse/children.
    • 65% if the employee is not supporting another spouse/children and is in arrears.

    Source: https://www.dol.gov/agencies/whd/fact-sheets/30-cppa

    State child support withholding laws may impose even lower limits on the amount that can be withheld than the CCPA; however, state laws can never exceed the federal limits imposed by the CCPA. If you have a child support order which does not specify the maximum percentage, AccountingWare suggests that you call the court for guidance.

15. If medical support or health care coverage is available to the child(ren) covered by the withholding order, mark the Medical Support Available checkbox.
16. In the Current Amount field, enter the amount of the garnishment per pay check.

17. In the Arrears Amount field, enter the amount of arrears to pay per pay check.

    Note

    By law, when an employee's check does not have enough disposable income to cover all child support garnishments, current child support amounts must be paid before any past due amounts.

18. Save the new garnishment.

To learn how to pay garnishments through Accounts Payable, click here.

For IRS agreements, the deduction is the per check amount.

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees > Records > Garnishments folder.
2. Click . The New Garnishment window opens.

   

3. Enter the code for the Employee whose wages are being garnished.
4. Enter a Description of the garnishment.
5. Enter the Case Number assigned by the court to the garnishment.
6. Enter the date the withholding order was Received.
7. From the Type drop-down list, select "IRS".

   

8. In the Start field, enter the date to start withholding for the garnishment. This date serves as the Begin Date of the employee automatic associated with the garnishment.
9. If you know the date when withholding will end, enter that date in the Stop field. This date serves as the End Date of the employee automatic associated with the garnishment.
10. In the PRCode field, select the PRCode to assign to the garnishment.

11. If you have the PR to AP interface enabled, an AP Control field is visible. Enter the AP control to use for posting from Payroll to Accounts Payable.

    Note

    Ensure that the AP control you select is NOT taxable.

12. From the IRS Type drop-down list, select "Agreement".

    

13. In the Check Amount field, enter the amount of the garnishment per pay check.
14. In the Total Amount field, enter the total amount due over the life of the garnishment.
15. Save the new garnishment.

For IRS levies, the source amount is disposable earnings.

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees > Records > Garnishments folder.
2. Click . The New Garnishment window opens.

   

3. Enter the code for the Employee whose wages are being garnished.
4. Enter a Description of the garnishment.
5. Enter the Case Number assigned by the court to the garnishment.
6. Enter the date the withholding order was Received.
7. From the Type drop-down list, select "IRS".

   

8. In the Start field, enter the date to start withholding for the garnishment. This date serves as the Begin Date of the employee automatic associated with the garnishment.
9. If you know the date when withholding will end, enter that date in the Stop field. This date serves as the End Date of the employee automatic associated with the garnishment.
10. In the PRCode field, select the PRCode to assign to the garnishment.

11. If you have the PR to AP interface enabled, an AP Control field is visible. Enter the AP control to use for posting from Payroll to Accounts Payable.

    Note

    Ensure that the AP control you select is NOT taxable.

12. From the IRS Type drop-down list, select "Levy".

    

13. Select the employee's Filing Status from the drop-down list. Your options are:
    • Single
    • Married filing jointly or qualifying widow(er)
    • Head of household
    • Married filing separately

14. In the Year field, enter the year to use to determine which table (IRS Form 1494) to apply in the IRS levy calculation.

    Note

    According to the American Payroll Association: "If the employee does not complete a new Part 3 of Form 668-W each year, the employer must continue to use the table for the year during which the levy notice was received. The employee may complete a new Part 3 at any time even if the employee's tax filing status or number of exemptions has not changed, in order to take advantage of higher exempt amounts contained in the new year's tables."

15. In the Exemptions field, enter the number of regular exemptions the employee is claiming.
16. In the Additional Exemptions field, enter the number of additional exemptions the employee is claiming.
17. Save the new garnishment.

For student loan garnishments, the source is disposable earnings and the rate is the maximum percentage. If a check amount is specified, it is used as the source; otherwise, the deduction amount is source times rate. The deduction is minimized to the state multiplier times the state minimum wage and to the Consumer Credit Protection Act limit.

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees > Records > Garnishments folder.
2. Click . The New Garnishment window opens.

   

3. Enter the code for the Employee whose wages are being garnished.
4. Enter a Description of the garnishment.
5. Enter the Case Number assigned by the court to the garnishment.
6. Enter the date the withholding order was Received.
7. From the Type drop-down list, select "Student Loan".

   

8. In the Start field, enter the date to start withholding for the garnishment. This date serves as the Begin Date of the employee automatic associated with the garnishment.
9. If you know the date when withholding will end, enter that date in the Stop field. This date serves as the End Date of the employee automatic associated with the garnishment.
10. In the PRCode field, select the PRCode to assign to the garnishment.

11. If you have the PR to AP interface enabled, an AP Control field is visible. Enter the AP control to use for posting from Payroll to Accounts Payable.

    Note

    Ensure that the AP control you select is NOT taxable.

12. In the Maximum % field, enter the maximum percentage that can be withheld from the employee's pay for this garnishment.
13. In the Check Amount field, enter the amount of the garnishment per pay check.
14. In the Total Amount field, enter the amount due over the life of the garnishment.
15. Save the new garnishment.

For state, local, and civil garnishments, the source is disposable earnings and the rate is the maximum percentage. If a check amount is specified, it is used as the source; otherwise, the deduction amount is source times rate. The deduction is minimized to the state multiplier times the state minimum wage and to the Consumer Credit Protection Act limit. The Consumer Credit Protection Act limit does not apply to state tax levy garnishments.

1. In the Navigation pane, highlight the Payroll/Human Resources > Employees > Records > Garnishments folder.
2. Click . The New Garnishment window opens.

   

3. Enter the code for the Employee whose wages are being garnished.
4. Enter a Description of the garnishment.
5. Enter the Case Number assigned by the court to the garnishment.
6. Enter the date the withholding order was Received.
7. From the Type drop-down list, select "State", "Local", or "Civil".

   

8. In the Start field, enter the date to start withholding for the garnishment. This date serves as the Begin Date of the employee automatic associated with the garnishment.
9. If you know the date when withholding will end, enter that date in the Stop field. This date serves as the End Date of the employee automatic associated with the garnishment.
10. In the PRCode field, select the PRCode to assign to the garnishment.

11. If you have the PR to AP interface enabled, an AP Control field is visible. Enter the AP control to use for posting from Payroll to Accounts Payable.

    Note

    Ensure that the AP control you select is NOT taxable.

12. From the State drop-down list, select the state that has the judgment against the employee.
13. In the Maximum % field, enter the maximum percentage that can be withheld from the employee's pay for this garnishment.
14. If you selected "Local" or "Civil" in the Type dropdown, the Local Minimum Wage field is visible. Enter the local minimum wage ONLY if it exceeds the federal and state minimum wage AND it applies for calculating garnishment limits; otherwise, leave the field blank. This field must be manually maintained.
15. In the Check Amount field, enter the amount of the garnishment per pay check.
16. In the Total Amount field, type the amount due over the life of the garnishment.
17. Save the new garnishment.