PeopleSoft Enterprise Payroll for North America 9.1 PeopleBook

Administering Garnishments

This chapter lists prerequisites and discusses how to:

Specify employee garnishment data.
(USF) Specify garnishment data for U.S. federal government employees.
Verify garnishment data compliance.
Process one-time garnishment deduction overrides.
(USA) Produce an EFT transmittal for child support garnishments.
(USF) Process a child support EFT transmittal.
View garnishment information.

Prerequisites

Before you can administer garnishments for employees, you must set up garnishment processing. Setup includes the following tasks:

Set up a garnishment deduction.
Define disposable earnings for garnishments not provided by PeopleSoft.
Define garnishment rules not provided by PeopleSoft.
(USA) Ensure garnishment proration rules are available.

See Also

Setting Up Garnishments

Specifying Employee Garnishment Data

This section provides an overview of garnishment limit processing, lists common elements, and discusses how to:

Enter garnishment order information.
Enter garnishment payee information.
Define garnishment deduction parameters and limitations.
Specify deduction defaults when deducting from all payrolls.
Specify a garnishment payment schedule and defaults.
(CAN) Apply garnishment rules.
(USA) Apply garnishment rules.
(USA) Specify EFT information for child support garnishments.
Override garnishment proration and specify pay mode.
Split garnishment orders.
Enter Colorado child and spousal support orders.

Understanding Garnishment Limit Processing

This section discusses:

Garnishment limit processing.
Monthly limit specification.

Garnishment Limit Processing

The Pay Calculation process selects only active garnishments for processing. To determine whether a garnishment is active, the system verifies that the garnishment meets all off following conditions:

The status of the garnishment on Garnishment Spec Data 1 page is set to Approved or Received.
The Start Date field on the Garnishment Spec Data 3 page is blank or the date entered is less than or equal to the check date of the paycheck being processed.

Note. If the paycheck being processed is an adjustment check, the system uses an adjustment date (the highest earnings end date) instead of check date when it verifies the start date.
The Stop Date field on Garnishment Spec Data 3 page is blank or the date entered is greater than the check date of the paycheck being processed.

Note. If the paycheck being processed is an adjustment check, the system uses an adjustment date (the highest earnings end date) instead of check date when it verifies the stop date.
The Limit Amount field on the Garnishment Spec Data 3 page is blank (zero) or the value is greater than the value in the Limit Balance field on the Garnishment Spec Data 3 page.

If a garnishment meets all of these selection criteria, the system proceeds in calculating an amount for the garnishment.

Pay calculation ensures that the garnishment amount calculated plus the YTD garnishment balance maintained by the Pay Confirmation process does not exceed the limit amount specified on Garnishment Spec Data 3 page.

Note. The system does not use the limit balance displayed on the Garnishment Spec Data 3 page for limit processing. For garnishment limit processing, the Pay Calculation process refers to the YTD (year-to-date) balance across all CY (calendar year) balance years for that employee ID and garnishment ID combination. You can view the YTD Garnishment Balance on the Garnishment Balances page.

See Reviewing and Adjusting Garnishment Balances.

Monthly Limit Specification

Some courts impose monthly limitations on the garnishment and the company and payee fees. When processing monthly limitations, the system uses the actual paycheck date—not the pay period end date, which might be in a different month. For example, a pay period might end on January 31, but the paycheck date might be February 1.

Payroll for North America normally calculates deductions, including garnishments, as follows:

Annualizes a monthly amount (multiplying it by 12).
Divides by the appropriate number of pay periods (for example, 52 in the case of weekly pay periods).

In months of the year containing 5 weekly pay periods instead of 4, this can result in deductions of more than the original intended monthly amount. In months containing 4 pay periods, the system deducts less than the intended monthly amount.

For example, a company employee, Steven, has been ordered to pay spousal support of 1,000 USD per month. Ordinarily, the system:

Annualizes this amount to 12,000 USD per year.
Divides by 52 to arrive at a weekly garnishment of 230.77 USD.

If January has 5 weekly pay periods, the system takes 1153.85 USD of Steven's pay. If February has 4 pay periods, the system takes 923.08 USD.

To avoid exceeding the monthly limit in situations like the above, use one of these methods:

Define a flat amount for the deduction calculation on the Garnishment Spec Data 5 page.

You must also select Deduct by Schedule in the Deduction Schedule field on the Garnishment Spec Data 3 page.
Enter the monthly limit amount in the Garnishment field in the Monthly Limit Amounts group box on the Garnishment Spec Data 3 page.

This establishes a monthly garnishment limitation. The system stops taking the deduction after the limit amount is reached in the month.

Common Elements Used in This Section

% DE + Amount (percent of disposable earnings plus amount)	Select this option to calculate: Deduction = percent of disposable earnings + flat amount Use for garnishments such as child support.
% Gross + Amount (percent of gross plus amount)	Select this option to calculate: Deduction = percent of earnings subject to garnishment + flat amount
Greater of % DE or Amount (greater of percent of disposable earnings or amount)	Select this option to calculate: Deduction = greater of a percent of disposable earnings OR the flat amount
Greater of % Grs or Amount (greater of percent of gross or amount)	Select this option to calculate: Deduction = greater of a percent of earnings subject to garnishment OR the flat amount
DE% (disposable earnings percent)	If the deduction is a flat amount only, leave this field blank to indicate that the percent is zero.

Pages Used to Specify Employee Garnishment Data

Page Name	Definition Name	Navigation	Usage
Garnishment Spec Data 1 (garnishment specification data 1)	GARNISH_SPEC1	Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 1	(USA) Enter garnishment order information.
Garnishment Spec Data 1 (garnishment specification data 1)	GARNISH_SPEC1_CN	Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 1	(CAN) Enter garnishment order information.
Garnishment Spec Data 2 (garnishment specification data 2)	GARNISH_SPEC2	Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 2 Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 2	Enter garnishment payee and address information.
Garnishment Spec Data 3 (garnishment specification data 3)	GARNISH_SPEC3	Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 3 Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 3	Select a deduction schedule and enter limit information.
Garnishment Spec Data 4 (garnishment specification data 4)	GARNISH_SPEC4	Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 4 Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 4	When deducting from all payrolls, define deduction defaults and processing fee defaults. Before using this page, select Deduct on All Payrolls in the Deduction Schedule field on the Garnishment Spec Data 3 page.
Garnishment Spec Data 5 (garnishment specification data 5)	GARNISH_SPEC5	Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 5 Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 5	Define the payment schedule for the garnishment and define deduction defaults and processing fee defaults. Before using this page, select Deduct by Schedule in the Deduction Schedule field on the Garnishment Spec Data 3 page.
Garnishment Spec Data 6 (garnishment specification data 6)	GARNISH_SPEC6_CN	Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 6	Specify the garnishment rule and enter employee-level exemption and deduction overrides.
Garnishment Spec Data 6 (garnishment specification data 6)	GARNISH_SPEC6	Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 6	Specify the garnishment rule and enter employee-level exemption and deduction overrides.
Deduction Distribution Information	GARN_SPEC2_SEC	(USA) Click the EFT – Child Support link on the Garnishment Spec Data 6 page.	Enter EFT information for child support garnishments.
Garnishment Spec Data 7 (garnishment specification data 7)	GARNISH_SPEC7	Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 7	Enter proration overrides if the proration rule either CRTORD or CRTDET. Also specify the pay mode for integration with PeopleSoft Enterprise Payables.
Garnishment Spec Data 7 (garnishment specification data 7)	GARNISH_SPEC7_CN	Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 7	Specify the pay mode for integration with PeopleSoft Payables.
Garnishment Prorations Report	RUNCTL_PAY719	Payroll for North America, Payroll Processing USA, Pay Period Reports, Garnishment Prorations, Garnishment Prorations Report	(USA) Generate PAY719 that provides a listing by court ID of employees whose garnishment amounts were prorated.

Entering Garnishment Order Information

Access the Garnishment Spec Data 1 page (Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 1; or Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 1).

Garnishment ID

In general, define only one garnishment specification for each garnishment order that you receive for an employee. Each garnishment specification must have a unique garnish ID.

See Splitting Garnishment Orders.

Note. Never reuse the same garnishment ID for an employee because the system calculates garnishment balances across all CY balance years for the combination of employee ID and garnishment ID.

Status

Update this field as the status changes throughout the life of the garnishment. This is important because it affects the payroll processing of the garnishment deduction.

If you select Received or Approved, the system processes the garnishment when you run the Pay Calculation COBOL SQL process (PSPPYRUN). If you select Completed, Rejected, Cancelled, Released, or Suspended, the system ignores the garnishment during the Pay Calculation process.

Received: Select this value when you establish a new Garnishment record, or to define an off-cycle entry for the employee to test the garnishment deduction before you put it into production.

Approved: Select this value when you inform the court, authorized agency, or government agency that you will comply with the garnishment or levy.

Cancelled: Select this status if the garnishment order is cancelled by the issuing agency, such as the U.S. Department of Education for Student Financial Assistance.

Completed: Select this value when the garnishment is paid in full. The system automatically selects this status during pay confirmation processing when the garnishment reaches its limit or stop date.

Note. If you run the Pay Unconfirm COBOL SQL process (PSPUNCNF) after confirming a payroll in which the system set the garnishment status to Completed, the unconfirm does not reset the garnishment status. You must keep this in mind and reset the status if you unconfirm the payroll.

Rejected: Select this value if you cannot comply with the garnishment or levy. For example, if you have terminated the employee and there are no wages to garnish, you can reject the garnishment.

Released: Select this status if the garnishment order is released by the issuing agency, such as the IRS (internal revenue service).

Suspended: Select this value to stop the garnishment deduction in payroll while preserving the garnishment specification data.

Terminated: Select this status if the garnishment order is terminated by the issuing agency, such as the California Franchise Tax Board.

(CAN) Deduction Code

This field is visible for Canada only. Select a valid before-tax or after-tax garnishment deduction code.

If you select a before-tax deduction code:

The following warning appears: Before-tax garnishment requires separate general deduction(s) for Company and Payee Fees.

The fields that are associated with the processing of garnishment fees (on the Garnishment Spec Data 3, 4, and 5 pages) become unavailable for entry.

Because the system must process company and payee fees that are associated with garnishments as after-tax deductions, you must define them separately as general deductions. When defining these general deductions, deselect the Garnishment Process indicator in the Deduction table.

Received On

Enter the date and time that you received the writ of garnishment or tax levy from the court, authorized agency, or government agency.

Respond By

Enter the date and time by which you must tell the court, authorized agency, or government agency whether you can comply with the garnishment order. For example, if the employee is no longer employed, you cannot garnish wages.

Garnishment Type

Select the type of garnishment or levy:

Writ of Garnishment: Typical garnishment type for failure to pay.

Tax Levy: Failure to pay taxes.

Chapter 13 Bankruptcy: Bankruptcy in Canada, or Chapter 13 bankruptcy in the U.S.

Wage Assignment: Similar to a writ, signifying a failure to pay.

Social Security (AWG): Social Security Administrative Wage Assignments.

Child Support, Spousal Support, and Dependent Support: Typically ordered by a family court .(USA) If you select one of these types, also select a value in the Garnishment Support Type field.

Student Loan Repayment: The garnishment type for delinquent student loans.

(USA) Support Type

Applies only for child support, dependent support, and spousal support garnishment types. For these garnishment types, select Current or Arrears.

Court Name

Enter the name of the court, authorized agency, or government agency that has legal jurisdiction over the garnishment.

Court Document ID 1 and Court Document ID 2

Enter any codes with which you identify the garnishment documents from the court or reports that you send back to the court or government agency. For example, garnishment documents might carry a file or case number, but a tax levy usually uses a date and the employee's social security number or social insurance number.

Entering Garnishment Payee Information

Access the Garnishment Spec Data 2 page (Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 2; or Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 2).

Note. (USF) These instructions do not apply to U.S. federal government employers.

See Entering Garnishment Payee Information.

Note. To process payments through the Payables interface, you must enter a setID, vendor ID, vendor location, and remit address. You should maintain vendor addresses on the Vendor table in the Payables database.

Vendor ID	(USA) This field must be blank if you're processing the garnishment as an EFT payment. Otherwise, select the vendor ID of the garnishment payee.
Location	If you selected a vendor ID, select the specific location for this garnishment from among the locations set up for the payee on the Vendor table.
Remit Address (remittance address)	If you selected a location, select the address sequence number that represents the garnishment remittance address in the Vendor table.

Note. When you enter the setID, vendor ID, location, and remit address number, the page displays the complete address.

Edit Address

If you're using the EFT process, you can enter the country in the Country field and click Edit Address to enter address data for information purposes only.

If you're using the Payables interface, you should make all address updates in the Vendor table.

See Maintaining Vendor Information.

Defining Garnishment Deduction Parameters and Limitations

Access the Garnishment Spec Data 3 page (Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 3; or Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 3).

Deductions

Schedule

Specify how to deduct garnishments:

Deduct on All Payrolls: If you select this value, use the Garnishment Spec Data 4 page to complete the deduction information.

Deduct by Schedule: If you select this value, use the Garnishment Spec Data 5 page to create the deduction schedule and complete the deduction information.

Priority

Select the processing priority of the garnishment in relation to other garnishments for the employee. This is not the same as the deduction priority in the General Deduction table. The system uses this value to process garnishments to which proration rules do not apply.

If you leave this field blank, or assign the same priority number to more than one garnishment specification, the system determines the processing priority by garnish ID. The lower the number, the higher the priority. For example, 100 is a higher priority than 200.

Include Company Fee Within DE (include company fee within disposable earnings) and Include Payee Fee Within DE (include payee fee within disposable earnings)

Select the check boxes to deduct fees from the employee's disposable earnings before taking garnishment deductions.

Note. Payroll for North America provides a garnishment proration option for states that permit proration of garnishments when an employee has more than one of the same type. If you use this option, the system uses the value in the Priority field only for garnishments to which proration does not apply.

Limitations

The fields in this group box impose time and amount restrictions on the garnishment deduction. This functionality is useful when you handle multiple garnishment orders from states where regulations prohibit the collection of more than one garnishment order at a time, or where they impose time limits on the collection of a garnishment.

Start Date	To start the garnishment deduction immediately, leave this field blank.
Stop Date	Leave the Stop Date field blank if you want the garnishment deduction to go on until the garnishment is satisfied. Otherwise, enter the date the deduction should stop. This date must be greater than the check date for a pay period to withhold the garnishment for that pay period. For example, if the pay period has an end date of March 10, 2000 and a check date of March 12, 2000, then the garnishment stop date must be greater than March 12, 2000 to withhold the garnishment in the March 10, 2000 pay period.
Calculate Stop Date or Stop Date Days	Select this check box to have the system calculate a stop date when you don't know the exact stop date. For example, Tennessee currently has a rule for garnishments of the Writ type, specifying a term of 90 days. In other words, you can only garnish money for 90 days. The 90-day term does not begin until you actually begin taking money from the employee (that is, until the employee has money available to garnish). For example, you might receive a garnishment order on September 1. If the employee has another garnishment of a higher priority, there might be no money available to garnish until November. In this situation, you cannot enter a stop date because you don't know what the exact start date is. Instead, select the Calculate Stop Date check box and enter the length of the garnishment term (90 for Tennessee) in the Stop Date Days field. As soon as the system can take money for this garnishment, it: Calculates the stop date by adding 90 days to the processing date of the current pay period. Enters that date in the Stop Date field. Deselects the Calculate Stop Date check box. From this point on, the system takes the garnishment until the end of the term, or until other limits are satisfied.
Limit Amount	Enter a limit amount to establish a maximum total amount for the garnishment deduction. Each time you run the Pay Confirmation COBOL SQL process (PSPCNFRM), the system updates the limit balance, displaying how much of the garnishment has been paid to date. When the limit balance equals the limit amount, the system automatically stops taking the deduction. To not set a limit, leave the limit amount blank.
Limit Balance	This field does not automatically reflect adjustments that you make to garnishment balances. If you make an online balance adjustment to garnishments, make the same update in this field. Calculations for limit processing use the value displayed in the YTD Garnishment Balance (year-to-date garnishment balance) field on the Garnishment Balances page. Update the Limit Balance field with that value after making any adjustments to garnishment balances. See Understanding Garnishment Limit Processing.

Monthly Limit Amounts

Use the fields in this group box to enter monthly limits imposed by the court on the garnishment amount, company fee, or payee fee.

Note. Your company or the payee might charge voucher fees, which are handling fees related to garnishments. Enter the fees owed to your company or to the payee in the Processing Fees Defaults group box on the Garnishment Spec Data 4 page or Garnishment Spec Data 5 page, depending on which deduction option you use.

See Also

Entering One-Time Garnishments

Overriding Garnishment Proration and Specifying Pay Mode

Understanding Garnishment Limit Processing

Specifying Deduction Defaults When Deducting From All Payrolls

Access the Garnishment Spec Data 4 page (Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 4; or Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 4).

Deduction Calculation Routine

Deduction Calculation Routine

Select Maximum to calculate:

Deduction = disposable earnings − exemptions

The system takes all it can get. Use for garnishments such as tax levy and bankruptcy.

Note. If you select this option, the DE Percent and Flat Amount options become unavailable for entry and the system deletes any data existing there.

Frequency

If you specify a flat amount, enter a deduction frequency. The system uses this frequency to adjust the flat amount to the employee's pay frequency to calculate the deduction amount per pay period.

See Common Elements Used in This Section.

Processing Fees

Based on the details of the court order, enter processing fees consisting of a percentage of the deduction or a flat amount to be paid to the company or to the payee. On the Garnishment Spec Data 2 page, you specified whether to include the company and payee fees in the employee's disposable earnings.

Some garnishment orders might require that you compare a flat amount with a percentage of the deduction and take the greater of the two. In that case, enter both, and the system automatically takes the greater amount.

Note. If there are company fees, be sure that a General Ledger account for the fees has been established on the General Ledger Liability Accts page in the Company component.

Specifying a Garnishment Payment Schedule and Defaults

Access the Garnishment Spec Data 5 page (Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 5; or Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 5).

Deduction Calculation Routine

Deduction Calculation Routine

Select Maximum Allowed to calculate:

Deduction = disposable earnings − exemptions

The system takes all it can get. Use for garnishments such as tax levy and bankruptcy.

Note. If you select this option, the Disposable Earnings Percent and Flat Amount options become unavailable for entry and the system deletes any data existing there.

See Common Elements Used in This Section.

Specifying Different Garnishment Amounts in Different Pay Periods

Suppose you receive a garnishment order for an employee who you pay weekly. The order specifies that you garnish 150 USD in the first pay period of the month, 200 USD in the second, 250 USD in the third, 200 USD in the fourth, and nothing in the fifth (for those months that have five pay periods). To set this up:

Enter a pay frequency of Weekly and a pay period of First to define what to deduct in the first weekly pay period.
In the Deduction Calculation Routine group box, select the %DE + Amount option and enter a flat amount of 150.00 USD. Leave the DE Percent field blank.
Insert a row for the second pay period.
Select a pay period of Second and enter a flat amount of 200.00 USD.
Repeat these steps for the remaining pay periods.

(CAN) Applying Garnishment Rules

Access the Garnishment Spec Data 6 page (Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 6).

Assignments

Select the jurisdictional entity (law source) and unique rule ID for the garnishment rule that you're applying. This information is maintained in the Garnishment Rules table.

You typically enter only the Law Source (province code or ZZ for federally supported rules).

You can use any rule if it applies to a garnishment situation, regardless of the original province designation (Garnish Law Source).

Exemption Parameters

If you need to override the values for the exemption amount, minimum and maximum, or frequency that are already established in the calculation formula for the garnishment rule, enter the override values here for the corresponding variables.

If you enter an exemption override, you might also have to change the value in the Amount Frequency field; the system uses this amount frequency to calculate the disposable earnings. The default is Monthly.

Note. To ensure that you enter values in the correct fields, we recommend that you review the calculation formula for the rule. The system ignores values that you enter here for exemption variables that are not already included in the garnishment rule's calculation formula.

See (CAN) Entering Exemption Amounts.

Dependent/Exemption Count	Enter the number of dependents or exemptions claimed by the employee.
Allowance Count	Enter the number of allowances claimed by the employee.

Deductions Allowed in DE Calculation

The fields in this section are not available for entry for users in Canada.

(USA) Applying Garnishment Rules

Access the Garnishment Spec Data 6 page (Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 6).

EFT- Child Support (electronic file transfer – child support)

Click this link to access the Deduction Distribution Information page, where you can enter the necessary information to process a child support garnishment as an electronic file transfer (EFT)

Assignments

Law Source and Rule ID

Select the jurisdictional entity (garnish law source) and unique rule ID for the garnishment rule that you're applying.

This information is maintained in the Garnishment Rules table.

You can enter multiple garnish law sources and rule IDs for each employee. Typically, you enter the federal code ($U), then insert a row for each applicable state.

Note. When an employee has more than one garnishment in a single state, the system determines proration rules based on the garnish law source. If multiple garnishments of the same type are received from different states, enter the state where the employee works for all of the garnishments.

Note. For proration rules CRTORD and CRTDET, the courts supply amounts or percents for prorating garnishments. For multiple garnishments with either of these proration rules, enter the court-ordered proration amount or percent on the Garnishment Spec Data 7 page.

Exemption Parameters

If you need to override the values for the exemption percent, amount, hours, or minimum and maximum that are already established in the calculation formula for the garnishment rule, enter the override values here for the corresponding variables.

See (USA) Entering Exemption Amounts.

Dependent/Exemption Count	Enter the number of dependents or exemptions claimed by the employee.
Allowance Count	Enter the number of allowances claimed by the employee.
Amount Frequency	If the court determines an exemption amount frequency (daily, weekly, or monthly) that differs from the frequency defined for the calculation rule, select the override frequency here.
Form 668–W Effective Year	This field appears on the page when the garnishment is a U.S. tax levy or Arizona tax levy. For these tax levies, the exemption amount is calculated using the year in which the levy was received unless the employee files a new Form 668-W with the employer. If the employee files a new Form 668-W, enter the year of the new Form 668-W here. The system calculates the exemption amount using the exemption values for the specified year.

Deductions Allowed in DE Calculation

For U.S. tax levies, the system populates this group box when you run the first payroll that includes the tax levy deduction. This identifies the deductions that were in place before the tax levy was received and that are included in the calculation of the disposable earnings for the levy. Deductions established for the employee after the levy was received are not included in the disposable earnings calculation and are deducted from the net pay remaining after the deduction of the tax levy.

For other garnishments, you can enter additional deductions for this garnishment to modify the disposable earnings definition used by the calculation rule.

(USA) Specifying EFT Information for Child Support Garnishments

Access the Deduction Distribution Information page (click the EFT – Child Support link on the Garnishment Spec Data 6 page).

EFT Payment

Select this check box if the payment is processed as an EFT payment rather than a check through accounts payable. When selected, the remaining fields on the page are available for entry.

Note. The Vendor ID field on the Garnishment Spec Data 2 page must be blank if you process the payment as an EFT.

Routing Number

Enter the bank ID of the distribution bank source used for processing the payments, as specified on the Bank table.

Account Number

Enter the account number of the distribution bank source used for processing the payments.

Account Type

Select either the Savings or Checking account type. Illinois accepts only the Checking account type.

Case Identifier

Enter the case number provided by the court.

FIPS Code (Federal Information Process Standard code)

Enter the state and county code of the state disbursement unit (SDU) receiving the transfer.

FIPS Code (Federal Information Process Standard code)

This code is required for Illinois and Massachusetts. Enter the state and county code of the state disbursement unit (SDU) receiving the transfer.

Remittance State

Select the SDU that receives the distribution and sends the payment to the recipient. Only states that accept EFT payment are available for selection.

Overriding Garnishment Proration and Specifying Pay Mode

Access the Garnishment Spec Data 7 page (Payroll for North America, Employee Pay Data USA, Deductions, Create Garnishments, Garnishment Spec Data 7; or Payroll for North America, Employee Pay Data CAN, Deductions, Create Garnishments, Garnishment Spec Data 7).

(USA) Proration Override

If the proration rule of the garnish law state is either CRTORD or CRTDET and the court specified a proration amount or percent:

Enter the state code and select the valid proration rule ID that applies to the garnishment.
Enter the percent or amount of override in the respective field.

Pay Mode

Use this group box to interface with PeopleSoft Enterprise Payables.

Pay Mode

Specify how Payables makes the garnishment payment:

Pay as Deducted: Select this value to pay the vendor each time Payroll for North America calculates this deduction.

Pay at Specified Date: Select this value to pay the vendor on a date that you specify in the AP Payment Date Type field.

Pay when Bond Price met: This value does not apply to garnishment processing.

Pay when Collection Completed: Select this value to pay the vendor only when you reach the goal amount or deduction end date. (This pay mode is valid for general deductions and garnishments).

AP Payment Date Type (accounts payable payment date type)

Specify which type of date to use when creating the accounts payable voucher. This field becomes available when you select Pay at Specified Date in the Pay Mode field.

Separate AP Payment (separate accounts payable payment)

Select this check box if the payment for this garnishment should be on a separate check when Payables makes the payment.

Note. The system selects this option automatically if it is not already selected and the employee has multiple garnishments for the same vendor with different vendor location and/or remit address. This ensures that an employee's garnishments for the same vendor with different locations and/or remit addresses are paid on separate invoices/vouchers and sent to the correct addresses.

Splitting Garnishment Orders

You can split complex orders such as:

One-time handling fees.

For example, a court might want a one-time 10 USD fee in conjunction with a garnishment. You can define separate garnishment specifications to handle:
- The fee.
- The garnishment itself.
Multiple payees.
Multiple document IDs.

For example, when a child support order for an employee with three children requires you to report to the court by child.

Entering Colorado Child and Spousal Support Orders

Colorado requires the following proration of child and spousal support orders:

If the spousal support is included with the child support order, they both have the same priority.
If the spousal support is on a separate order, then child support has priority.

This section discusses how to enter child and spousal support orders in Colorado to ensure that proration is correct in each of these situations.

Child and Spousal Support on the Same Court Order

If child support and spousal support are on the same court order:

Enter one garnishment for the combined withholding amounts.
Select Child Support as the garnishment type

The system processes withholding as one garnishment according to the garnishment rule applied. If there is not enough money to withhold the whole amount, there is no proration processing.

Child and Spousal Support on Two Court Orders

If child support and spousal support are on two court orders: .

Enter two garnishments.
Enter the corresponding garnishment type for each garnishment.
Specify the Colorado child support proration rule.

The system processes both garnishments according to the garnishments rules applied. If there is not enough money to withhold both amounts, the system applies the CBFRSP proration rule to prorate withholding accordingly.

(USF) Specifying Garnishment Data for U.S. Federal Government Employees

This section discusses how to:

Enter garnishment payee information.
Enter garnishment deduction distribution information.

Note. The Create Garnishments component (GVT_GARNISH_SPEC) for Federal users is very similar to the component of the same name for the U.S. and Canada, but retains unique object names and provides slight variations in fields.

See Also

Specifying Employee Garnishment Data

Pages Used to Specify Garnishment Data for U.S. Federal Government Employees

Page Name	Definition Name	Navigation	Usage
Garnishment Spec1 (garnishment specification 1)	GVT_GARNISH_SPEC1	Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec1	Enter garnishment order information.
Garnishment Spec2 (garnishment specification 2)	GVT_GARNISH_SPEC2	Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec2	Enter information regarding the payee.
Deduction Distribution Information	GVT_GARN_SPEC2_SEC	Select the Distribution Information link on the Garnishment Spec2 page.	Enter the payee's garnishment deduction distribution information.
Garnishment Spec3 (garnishment specification 3)	GVT_GARNISH_SPEC3	Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec3	Define garnishment deduction parameters and limitations.
Garnishment Spec4 (garnishment specification 4)	GVT_GARNISH_SPEC4	Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec4	Define deduction information when deducting from all payrolls. Before using this page, select Deduct on All Payrolls in the Deduction Schedule field on the Garnishment Spec3 page.
Garnishment Spec5 (garnishment specification 5)	GVT_GARNISH_SPEC5	Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec5	Define the payment schedule for the garnishment. Before using this page, select Deduct by Schedule in the Deduction Schedule field on the Garnishment Spec3 page.
Garnishment Spec6 (garnishment specification 6)	GVT_GARNISH_SPEC6	Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec6	Indicate which garnishment rule governs each garnishment.
Garnishment Spec7 (garnishment specification 7)	GVT_GARNISH_SPEC7	Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec7	Enter the court-ordered amount or percent by which to prorate the employee's garnishments. Use this page only if the proration rule of the garnish law state is either CRTORD or CRTDET.
Garnishment Prorations Report	RUNCTL_PAY719	Payroll for North America, Payroll Processing USF, Pay Period Reports, Garnishment Prorations, Garnishment Prorations Report	Generate PAY719 that provides a listing by court ID of employees whose garnishment amounts were prorated.

Entering Garnishment Payee Information

Access the Garnishment Spec2 page (Payroll for North America, Employee Pay Data USF, Deductions, Create Garnishments, Garnishment Spec2).

Payee Name (No Table Edit)

Enter a payee's name that is not from an existing table.

Distribution Information

Select this link to access the Deduction Distribution Information page where you enter distribution information for this garnishment.

Entering Garnishment Deduction Distribution Information

Access the Deduction Distribution Information page (Select the Distribution Information link on the Garnishment Spec2 page).

For EFT distributions, select EFT as the payment method and specify the remittance state and FIPS code in addition to the account information.

(USF) Entering Garnishment Payee Distribution Information

Verifying Garnishment Data Compliance

When you receive a garnishment order for an employee, Payroll for North America enables you to determine quickly whether you can comply.

To verify that the system can withhold the garnishment deduction as required by the garnishment order:

Enter the garnishment information for the employee.
Use the Online Check feature to enter the payroll information for that employee as if you are going to create a single check.
Create a paysheet.
Calculate pay.

Note. Delete the online check before you run the payroll.

See Also

Working with Checks and Direct Deposit

Processing One-Time Garnishment Deduction Overrides

Enter one-time garnishment deduction overrides on the paysheet.

See Entering One-Time Garnishments.

(USA) Producing an EFT Transmittal for Child Support Garnishments

This section provides an overview of producing the EFT transmittal for child support garnishments and discusses how to run the Child Support – EFT process (PAY040).

Understanding EFT Processing for Child Support Garnishments

Payroll for North America enables EFT processing of child support payments for states that accept EFT payment. For these states, the EFT file replaces the process of generating a check through the accounts payable system.

The Child Support – EFT process (PAY040) generates the electronic funds transmittal report. For the pay run ID specified on the Create Child Support EFT page, the process generates an EFT file for each financial institution associated with the pay run ID. In one EFT file, there can be multiple states that receive garnishment payments.

The output file is generated in the CCD file format. The file name is CCDrunid.nnn. For example, if there were two output files for pay run ID 74X, the files would be named CCD74X.001 and CCD74X.002.

A separate CCD file is created for each source bank identified on the Create Child Support EFT run control page.

The process also produces output in PDF format.

Page Used to Produce the EFT Transmittal

Page Name	Definition Name	Navigation	Usage
Create Child Support EFT	RUNCTL_PAY040	Payroll for North America, Payroll Processing USA, Create Direct Deposits, Create Child Support EFT	Generate an EFT transmittal file for child support garnishments.

Running the Create Child Support EFT process (PAY040)

Access the Create Child Support EFT page (Payroll for North America, Payroll Processing USA, Create Direct Deposits, Create Child Support EFT).

Pay Run ID

Select the pay run ID of the payroll run. The process retrieves garnishment payments for the specified pay run ID.

Description

Enter any information you would like to appear with the company identification information in the transmittal file header. You may leave this blank.

ACH Offset Record (automated clearing house offset record)

Select if you want PAY040 to generate one offset (627) record after all the employees/states have been reported and after the last 722 record is generated. When this check box is deselected, the offset (627) record is not generated and the debit amount on record 8 is zero filled.

File Header Company

Enter the source bank ID and company ID. The system uses this information to populate the bank and company information in the file header. If you leave these fields blank, the system uses the company information from the Pay Calendar table.

(USF) Processing a Child Support EFT Transmittal

U.S. Federal Government users process a child support EFT transmittal through the Treasury/Federal Reserve Bank Bond interface.

Entering Garnishment Deduction Distribution Information

Viewing Garnishment Information

This section discusses how to:

Review garnishments.
Review garnishment balances and adjustments.

Page Used to Review Garnishments

Note. (USF) This page is not available for U.S. federal government employers.

Page Name	Definition Name	Navigation	Usage
Review Garnishments	GARN_REVIEW	Payroll for North America, Employee Pay Data USA, Deductions, Review Garnishments, Review Garnishments Payroll for North America, Employee Pay Data CAN, Deductions, Review Garnishments, Review Garnishments	Review the garnishment history of the selected employee.

Reviewing Garnishments

Access the Review Garnishments page (Payroll for North America, Employee Pay Data USA, Deductions, Review Garnishments, Review Garnishments; or Payroll for North America, Employee Pay Data CAN, Deductions, Review Garnishments, Review Garnishments).

Garnishment Spec pages (garnishment specification pages)

Click this link to access the employee's garnishment specification data. The system opens a new window and displays the Garnishment Spec Data component (GARNISH_SPEC) or (GARNISH_SPEC_CN). The component opens to the employee's first garnishment ID; from there you can scroll to the data that you want to view.

Review Paycheck

Click this link to access the employee's paycheck data. The system opens a new window and displays the Paycheck Deductions page for the selected pay end date. The paycheck data opens to the employee's first garnishment ID; from there you can scroll to the garnishment that you want to view.

See Also

Viewing Paycheck Deductions

Reviewing Garnishment Balances and Adjustments

This section provides a link to discussions of how to:

View garnishment deduction balances using the Garnishment Balances page.
View online adjustments to garnishment balances using the Garn Balance Adjustment page.

Garnishment ID	In general, define only one garnishment specification for each garnishment order that you receive for an employee. Each garnishment specification must have a unique garnish ID. See Splitting Garnishment Orders. Note. Never reuse the same garnishment ID for an employee because the system calculates garnishment balances across all CY balance years for the combination of employee ID and garnishment ID.
Status	Update this field as the status changes throughout the life of the garnishment. This is important because it affects the payroll processing of the garnishment deduction. If you select Received or Approved, the system processes the garnishment when you run the Pay Calculation COBOL SQL process (PSPPYRUN). If you select Completed, Rejected, Cancelled, Released, or Suspended, the system ignores the garnishment during the Pay Calculation process. Received: Select this value when you establish a new Garnishment record, or to define an off-cycle entry for the employee to test the garnishment deduction before you put it into production. Approved: Select this value when you inform the court, authorized agency, or government agency that you will comply with the garnishment or levy. Cancelled: Select this status if the garnishment order is cancelled by the issuing agency, such as the U.S. Department of Education for Student Financial Assistance. Completed: Select this value when the garnishment is paid in full. The system automatically selects this status during pay confirmation processing when the garnishment reaches its limit or stop date. Note. If you run the Pay Unconfirm COBOL SQL process (PSPUNCNF) after confirming a payroll in which the system set the garnishment status to Completed, the unconfirm does not reset the garnishment status. You must keep this in mind and reset the status if you unconfirm the payroll. Rejected: Select this value if you cannot comply with the garnishment or levy. For example, if you have terminated the employee and there are no wages to garnish, you can reject the garnishment. Released: Select this status if the garnishment order is released by the issuing agency, such as the IRS (internal revenue service). Suspended: Select this value to stop the garnishment deduction in payroll while preserving the garnishment specification data. Terminated: Select this status if the garnishment order is terminated by the issuing agency, such as the California Franchise Tax Board.
(CAN) Deduction Code	This field is visible for Canada only. Select a valid before-tax or after-tax garnishment deduction code. If you select a before-tax deduction code: The following warning appears: Before-tax garnishment requires separate general deduction(s) for Company and Payee Fees. The fields that are associated with the processing of garnishment fees (on the Garnishment Spec Data 3, 4, and 5 pages) become unavailable for entry. Because the system must process company and payee fees that are associated with garnishments as after-tax deductions, you must define them separately as general deductions. When defining these general deductions, deselect the Garnishment Process indicator in the Deduction table.
Received On	Enter the date and time that you received the writ of garnishment or tax levy from the court, authorized agency, or government agency.
Respond By	Enter the date and time by which you must tell the court, authorized agency, or government agency whether you can comply with the garnishment order. For example, if the employee is no longer employed, you cannot garnish wages.
Garnishment Type	Select the type of garnishment or levy: Writ of Garnishment: Typical garnishment type for failure to pay. Tax Levy: Failure to pay taxes. Chapter 13 Bankruptcy: Bankruptcy in Canada, or Chapter 13 bankruptcy in the U.S. Wage Assignment: Similar to a writ, signifying a failure to pay. Social Security (AWG): Social Security Administrative Wage Assignments. Child Support, Spousal Support, and Dependent Support: Typically ordered by a family court .(USA) If you select one of these types, also select a value in the Garnishment Support Type field. Student Loan Repayment: The garnishment type for delinquent student loans.
(USA) Support Type	Applies only for child support, dependent support, and spousal support garnishment types. For these garnishment types, select Current or Arrears.
Court Name	Enter the name of the court, authorized agency, or government agency that has legal jurisdiction over the garnishment.
Court Document ID 1 and Court Document ID 2	Enter any codes with which you identify the garnishment documents from the court or reports that you send back to the court or government agency. For example, garnishment documents might carry a file or case number, but a tax levy usually uses a date and the employee's social security number or social insurance number.

EFT Payment	Select this check box if the payment is processed as an EFT payment rather than a check through accounts payable. When selected, the remaining fields on the page are available for entry. Note. The Vendor ID field on the Garnishment Spec Data 2 page must be blank if you process the payment as an EFT.
Routing Number	Enter the bank ID of the distribution bank source used for processing the payments, as specified on the Bank table.
Account Number	Enter the account number of the distribution bank source used for processing the payments.
Account Type	Select either the Savings or Checking account type. Illinois accepts only the Checking account type.
Case Identifier	Enter the case number provided by the court.
FIPS Code (Federal Information Process Standard code)	Enter the state and county code of the state disbursement unit (SDU) receiving the transfer.
FIPS Code (Federal Information Process Standard code)	This code is required for Illinois and Massachusetts. Enter the state and county code of the state disbursement unit (SDU) receiving the transfer.
Remittance State	Select the SDU that receives the distribution and sends the payment to the recipient. Only states that accept EFT payment are available for selection.

Payee Name (No Table Edit)	Enter a payee's name that is not from an existing table.
Distribution Information	Select this link to access the Deduction Distribution Information page where you enter distribution information for this garnishment.

Pay Run ID	Select the pay run ID of the payroll run. The process retrieves garnishment payments for the specified pay run ID.
Description	Enter any information you would like to appear with the company identification information in the transmittal file header. You may leave this blank.
ACH Offset Record (automated clearing house offset record)	Select if you want PAY040 to generate one offset (627) record after all the employees/states have been reported and after the last 722 record is generated. When this check box is deselected, the offset (627) record is not generated and the debit amount on record 8 is zero filled.
File Header Company	Enter the source bank ID and company ID. The system uses this information to populate the bank and company information in the file header. If you leave these fields blank, the system uses the company information from the Pay Calendar table.

Garnishment Spec pages (garnishment specification pages)	Click this link to access the employee's garnishment specification data. The system opens a new window and displays the Garnishment Spec Data component (GARNISH_SPEC) or (GARNISH_SPEC_CN). The component opens to the employee's first garnishment ID; from there you can scroll to the data that you want to view.
Review Paycheck	Click this link to access the employee's paycheck data. The system opens a new window and displays the Paycheck Deductions page for the selected pay end date. The paycheck data opens to the employee's first garnishment ID; from there you can scroll to the garnishment that you want to view.