Dillner's Accounting Tools > section > Payroll
Set up a Deduction as a Flat Amount Not to Exceed a Percent of Disposable Net
Some garnishments, such as child support, may be ordered as a flat amount, not to exceed a certain percentage of net 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 Qty Limit on Disposable Net in the Based On field.
- Leave 0.00 in the Limit or % field.
- Select Check in the Limit Type field.
- Leave 0.00 in the Limit 2 field.
- 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.
- Enter the details like a case number to print in the memo field of the check stub in the Memo field.
- 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 the deduction amount in the Rate field.
- Enter the decimal equivalent of the maximum percent in the Limit field.
- Select Check in the Limit Type field.
- If this garnishment stops after a certain amount has been paid, enter that amount 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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