Last modified by: Kevin Zimmer -
How to set up Wage Garnishments
The first step to adding a Garnishment is to create a garnishment payroll instruction. Garnishment deductions can either be a fixed amount or percentage of wages.
Navigate to the Payroll Set up section and add new deduction.
Adding a percentage garnishment deduction.
- Enter the name of the deduction, it is suggested you use the name and description Garnishment (for fixed deductions) or Garnishment % (for percentage deductions).
- If the garnishment order indicates it is a percentage then enter the Schedule as Every pay run (regular and unscheduled pay runs).
- Apply the PI deduction to All Employees
- Generates values in All Departments
- Allow Value/Formula override
- Input value type: Percentage
- Instruction Value: select Determined using a formula and enter the following formula [InputValue]*([GrossPay]-([CPP])-([EI])-([FedTax])-([ProvTax]))
- Formula Code: Garnishment
- Source: Off Net
Inclusion System can issue payment and deliver the payment on the company's behalf. Contact us and it will be our pleasure to make this arrangement.
Step 2: Adding the Garnishment to the employee's payroll instructions.
Navigate to the employee maintenance screen and Apply Employee Override to the Garnishment % payroll instruction.
Enter in the garnishment percentage in the Default Value (%) field
The input grid will include a deduction column with the garnishment deduction that will reoccur on each pay run.
Setting Deduction Maximums
As an added feature, you can set a maximum dollar amount to be deducted. Once the deduction has reached the inputted value, the garnishment will stop deducting until it has been reset.