Set up a Garnishment Leaving a Specific Amount for Net Pay
In some instances, a garnishment order may be issued for all but a specified amount left for net pay. For example, the IRS may issue an order for a garnishment leaving the employee nothing but $157.69 as take home pay.
To set up this type of deduction:
Select Setup>Payroll Items.
Set up a unique Deduction item for the garnishment.
Leave 0.00 in the Amount or % field.
Select Net Payroll (limit=exclude) in the Based On field.
Leave 0.00 in the Limit or % field and select Check in the Limit Type field.
Leave 0.00 in the Limit 2 field and select Lifetime in the Limit Type 2 field.
Select the appropriate Liability Account.
Select the appropriate Payee in the Payable To field if you are writing the garnishment check.
Leave the W2 Tracking and W2 Code fields Blank.
To enter the garnishment details on the the employee record:
Select Setup>Contacts>Company Contacts.
Select the appropriate employee and select the Item(s)/Limits tab.
Select the garnishment item in the Item field.
Enter 1.00 in the Rate field.
Enter the amount the employee will receive each pay period in the Limit field.
Select Check in the Limit Type field.
Enter the total amount to be deducted in the Limit 2 field.
Select Lifetime in the Limit Type 2 field.
Add the new garnishment item to the bottom grid of the Payroll Template selected for this employee.
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