An employee that owes money or has debts, can have their wages withheld by court order to pay off those debts. Earnings will be garnished until the debt is paid off or ended in some other way.
You will need the court order to fill out an employee's garnishment. The selection for the garnishment deduction is the same deduction you will choose for setting up a child support garnishment.
Adding a Garnishment to Your Company
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Once you’re logged into your payroll account, click on Company and select Add/Edit Deductions.
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Select the deduction category Other Post-Tax Deductions.
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Select Garnishment and enter the name/description of the deduction and the abbreviation you want displayed on the paystubs and reports. Note: Please read the descriptions carefully to ensure the taxability is correct along with any special reporting.
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Complete any other fields that may apply.
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Click Create Deduction.
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You can now allocate these deductions to each of the employees it applies to on their employee profile along with the amount of the deduction.
Adding a Garnishment to an Employee
- Click on Employees and select Employee List.
- Locate the employee you would like to update and click on their name.
- Click on deductions.
- From the Create Deduction menu, select the deduction that you just added (you may need to reset payroll to finish).
- Enter the percentage or fixed amount.
- Enter the Max Paycheck Percentage if applicable.
- Enter the total amount owed if applicable. Note: If the total amount owed is left blank or 0.00, the garnishment will always be deducted for as long as it’s active.
- Click Save.
- You'll see these deductions on the payroll approval details for each employee this deduction applies to.