Child Support or Other Payroll Garnishment

Employer has received notification of an employee garnishment. This garnishment is to be collected from the employee's payroll check and forwarded to an outside resource (example: Child Support or Outstanding Debt).

Steps to setup the Garnishment:
1. Go into the Payroll Package
2. Go to setup--deduction codes
3. Select a deduction number and change the description
4. Review the columns for:

Deduct before FICA and FIT/FUTA Exempt-- If this garnishment is not pre-tax then you would answer N for both columns.
Put in a W-2 code if one exists for this deduction. This code appears on the W-2 for tax reporting purposes.
Select next and finish out the deduction code setup.

5. From the main menu of Payroll - go to Payroll tax tables and select the State/local tax tables
6. Go to screen 2 and review the Tax-Exempt column for the new garnishment, varies by state.
7. Select Next after any changes have been made to save the state tax table changes (this will take you to the main menu in Payroll)

Create the deduction on the Employee

Go into Employee Information > view/edit employee > select the employee > select deduction information
Select the Garnishment deduction code.
Once inside the deduction code setup:
1. Select the pay period in which you want this Garnishment to be taken.
2. Select the Calculation type.
3. Put in the % or the amount of the deduction.
4. Key in a Minimum net wage if there is one (this is so that the deduction will not be taken out if the wages fall below this amount).
5. Use remain balance?
  - A positive response to the question "Use remain balance?" sets the Balance/Wage Ceiling input field below to represent a remaining balance. The deduction automatically stops when the remaining balance reaches zero.
    - Your payroll clerk may use this feature for a deduction for repayment of a loan, garnishments, etc.
  - A negative response to the question "Use remain balance?" sets the balance/wage ceiling input field below to use the wage ceiling. The deduction will continue until the employee's year to date wages reaches the ceiling amount (this is used with 401k, savings plans, etc.).
6. Save/exit (the employee side is setup)

Set up the deduction to drive to an account in SJI.

Select SJI > System Accounts > Payroll.
1. Hit enter to get to the Transaction code.
2. Select the deduction of Garnishment.
3. Fill in the account that needs to go with this garnishment (deduction code)
  (If you don't have account set up, you can do that in LDG > Maintenance Options > Chart of Accounts.
  This should be a liability account.)

Now the Employer wants to pay the garnishment out.
1. Create a payroll
2. The deduction will be going to the account code setup
3. Go into ACP > Vouchers/Credit Memos
4. Create a Manual Voucher for the Garnishment amount.
5. The G/L Coding on the Voucher is keyed to the Garnishment Account Code/Liability Account
6. Create a disbursement against the Voucher and that will pay the voucher and create a check.