This chapter provides an overview of garnishments and discusses how to:
Define disposable earnings for garnishments.
Maintain garnishment rules.
Maintain state garnishment rules.
Maintain garnishment proration rules.
Create document details.
Create correspondence types.
See Also
This section discusses:
Delivered garnishment deductions.
Delivered supporting elements.
Garnishment assignments.
Process lists and sections.
Viewing delivered elements.
Global Payroll for United States delivers a single deduction element to calculate all garnishment deductions for the U.S.
In this table, the first column combines the name and description of the garnishment deduction. The other columns indicate the calculation rule components, such as Unit, Rate, Percent, and Amount, and the pre- and post-process formulas for the delivered garnishment deduction.
Name |
Unit |
Rate |
Percent |
Amount |
Pre- and Post- Process Formula |
GARNISHMENT Garnishment |
Payee-level |
Pre-GRN FM PRE PRCS Post-GRN FM PST PRCS |
Note. This element is defined as PS Delivered/Maintained. This means that you cannot modify it without losing support for statutory rules changes.
This table lists the key supporting elements used to define the garnishment deduction:
Element Type |
Element Name |
Used By |
Where Used |
Variable |
GRN VR ID |
Garnishment deduction. GRN VR ID (garnishment ID) is a user field on the garnishment deduction. Every garnishment assigned to a payee must have a unique ID. |
Assignment page of the Assign Garnishments USA component (GPUS_GRN). On this page you enter the Garnishment ID (GRN VR ID). |
GRN VR PAY PERIOD |
Garnishment deduction. |
Supporting Element Overrides page of the Calendars component (GP_CALENDAR). On this page you enter a supporting element override to identify what pay period the calendar is for if you are processing garnishments in some periods but not others. |
|
GRN VR TYPE |
Garnishment deduction. GRN VR TYPE (garnishment type) is a user field on the garnishment deduction. |
Assignment page of the Assign Garnishments USA component (GPUS_GRN). On this page you define the garnishment type. Values include:
|
|
Formula |
GRN FM SKIP PRCS |
Garnishment deduction. GRN GC SKIP PRCS (generation control formula for the garnishment element). This formula determines whether the garnishment should be deducted in the current pay period based on the garnishment setup. |
|
GRN FM PRE PRCS |
GRN FM PRE PRCS is the pre-processing formula for the garnishment element. It gathers information from the garnishment setup to enable calculation of the garnishment. |
||
GRN FM PST PRCS |
GRN FM PST PRCS is the post-processing formula for the garnishment element. This formula determines whether the amount calculated for the garnishment is correct based on the information gathered in the pre-process formula. If it is not correct, the formula overrides the calculated amount. In addition, if the amount available is insufficient to process the garnishment, the formula triggers proration. |
The garnishment deduction has a calculation rule of Amount, with the Amount Type set to Payee Level. This means that garnishments are resolved only when:
An amount is assigned to a payee on the Assignment page of the Assign Garnishments USA component (GPUS_GRN ).
There is positive input for the deduction.
Note. When you enter one-time positive input for a garnishment deduction, you must specify the Garnishment ID (GRN VR ID), the Garnishment Received Date (GRN VR RECDT), and the Garnishment Type (GRN VR TYPE) of the garnishment you are overriding on the Positive Input - Details page of the One Time (Positive Input) component (GP_PI_MNL_ERNDED).
See Processing One-Time Garnishment Overrides.
Before processing federal tax levies, you must make sure that all employee deductions are set up to contribute to the accumulator GRN AC FLVYSETUP N.
See Understanding the Accumulator Structure of General Deductions.
The garnishment deduction belongs to the USA STD PAYROLL process list.
It is assigned to the GARNISHMENT section of the process list.
The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the U.S. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.
See Also
Understanding How to View Delivered Elements
To set up garnishments:
Define accumulators to hold disposable earnings.
In Global Payroll, disposable earnings are defined as accumulators, and are created using the core accumulator definition component (GP_ACCUMULATOR).
Global Payroll for United States delivers many disposable earning accumulators. You can modify them or use them as examples for creating your own accumulators to hold disposable earnings.
Define garnishment rules.
The garnishment rules delivered by Global Payroll for United States specify the amount to exempt from disposable earnings.
Note. PeopleSoft delivers and maintains the formulas for calculating exemption amounts. When PeopleSoft defines an exemption, it specifies the calculation formula and supplies components of the formula’s definition. For example, for a garnishment rule based on the exemption calculation formula Gross Percentage + Amount, PeopleSoft specifies both the percentage and the amount.
Define state garnishment rules.
A state garnishment rule links a disposable earnings definition to an exemption rule, so that the system can calculate the garnishment amount allowed by state and garnishment type.
Note. PeopleSoft delivers and maintains state garnishment rules for child support, federal tax levy, state tax levy, student loan, AWG, and creditor garnishments; however, you can modify and update the accumulators that hold disposable earnings, or create new accumulators to hold disposable earnings.
Define proration rules.
Proration rules are used to calculate the amount to be deducted for each garnishment when insufficient funds are available to cover all garnishments of the same type.
Note. PeopleSoft delivers and maintains proration rules for child support and creditor garnishments. For other garnishment types, you can create your own proration formulas or accept the default formula GRN FM FIFO ALL.
Create document details.
Document details are user-configured fields used to record important information about garnishment orders.
Note. Global Payroll for United States delivers several document detail fields; you can modify these fields or create new fields as needed
Create correspondence types.
Correspondence types are user-configured fields that enable you to document who, when, and how an organization has communicated to payees or the issuing agency regarding a garnishment.
Note. Global Payroll for United States delivers several correspondence type fields; you can modify these fields or create new fields as needed
The following sections provide detailed information about each of these setup steps.
This section discusses how to create disposable earnings.
To define disposable earnings for garnishments, use the Accumulators (GP_ACCUMULATOR) component.
In Global Payroll for United States, disposable earnings are defined as accumulators. PeopleSoft delivers many disposable earning accumulators. You can modify them or use them as examples for creating your own accumulators to hold disposable earnings.
This table lists the delivered accumulators for disposable earnings:
Name |
Description |
How Defined |
GRN AC ALLWAGES N |
All Wages |
Total earnings (equal to accumulator TOTAL EARNINGS N). |
GRN AC FED N |
Federal DE |
Federal disposable earnings. |
GRN AC FEDTAX Note. This accumulator is delivered and maintained by PeopleSoft. |
Federal Tax Levy DE |
Federal disposable earnings less federal tax levy amount deduction and federal tax levy percent deduction. |
GRN AC FED+401K N |
Taxes + 401K DE |
Federal disposable earnings less employee 401K contributions. |
GRN AC FED+DED N |
Taxes + Deductions DE |
Federal disposable earnings less all deductions. Note. After you create union dues and pension deductions for your organization, enter them on the Accumulator-Members page for this accumulator. |
GRN AC FED+HI+UD N |
Taxes + Health + Union Dues DE |
Federal disposable earnings less health insurance and union dues deductions. Note. After you create union dues deductions for your organization, enter them on the Accumulator-Members page for this accumulator. |
GRN AC FED+HI+PN N |
Taxes + Health Ins + PensionDE |
Federal disposable earnings less health insurance and pension deductions. Note. After you create a pension deduction for your organization, enter it on the Accumulator-Members page for this accumulator. |
GRN AC FED+HI N |
Taxes + Health Ins DE |
Federal disposable earnings less health insurance deductions. |
GRN AC FED+HIO N |
Taxes + Health Ins Order DE |
Federal disposable earnings less medical support order amount. |
GRN AC FEDINS401 N |
Taxes + Insurance + 401K DE |
Federal disposable earnings less insurance and deductions and 401K contributions. |
GRN AC FED+INS N |
Taxes + Insurance DE |
Federal disposable earnings less all insurance deductions. |
GRN AC FED+UD N |
Taxes + Union Dues DE |
Federal disposable earnings less union dues deductions. Note. After you create a union dues deduction for your organization, enter it on the Accumulator-Members page for this accumulator. |
Note. If you create new disposable earnings accumulators, enter GDE, Garnishment Disposable Earning, in the Category field on the Accumulator Name page.
See Also
This section discusses how to:
Define garnishment rule information.
Defining rule calculation information.
To maintain garnishment rules, use the Garnishment Rules USA (GPUS_GRN_RUL) component.
Page Name |
Object Name |
Navigation |
Usage |
GPUS_GRN_RUL |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishments/Court Orders, Garnishment Rules USA, Garnishment Rule |
Enter descriptive information for a garnishment rule. |
|
GPUS_GRN_RULECAL |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishments/Court Orders, Garnishment Rules USA, Rule Calculations |
Enter exemption calculations for the rule ID. |
Access the Garnishment Rule page.
Enter the description and comments for this garnishment rule.
Note. Global Payroll for United States delivers many garnishment rules. These rules are delivered and maintained by PeopleSoft.
Access the Rule Calculations page.
Calculation Formula |
Select the calculation formula used to calculate the exemption amount. Valid values are: DE Amt*Pct+Amt1*Pct+Amt2*Pct, DE Percent, CS &CG Deductions, DE Percentage + Amount, DE or Amount Percent, Disposable Earnings Percentage, Flat Amount, Flat Amount Percentage, General Calculation, Greater of %DE or Amount, Greater of %Gross or Amount, Gross Percentage, Gross Percentage + Amount, Minimum Hourly Wage, and SWT Gross Percentage. |
Exemption Variable
Depending on the Calculation Formula, the appropriate exemption variables appear in the Exemption Variable group box. For example, if the calculation formula is DE Percentage + Amount, the exemption variables Flat Amount and Disposable Earnings Percent appear in the group box. You must then define the values of these variables.
Name |
The appropriate variable names automatically appear in this column when the calculation formula is selected. |
Frequency |
Select the frequency that applies to the exemption variable. Valid values are: Biweekly, Monthly, Semi-Monthly, and Weekly. Note. The frequency you select causes annualization/deannualization to occur so that the calculated value is in line with the pay period frequency. |
Numeric Value, Monetary Value, and Currency Code |
Enter a numeric or monetary value and a corresponding currency code for each applicable value. |
This section discusses how to define state garnishment rules.
To maintain state garnishment rules, use the State's Garnishment Rules USA (GPUS_GRN_STRUL) component.
Page Name |
Object Name |
Navigation |
Usage |
GPUS_GRN_STRUL |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishment/Court Orders, State Garnishment Rules USA, State Garnishment Rules USA |
Enter garnishment rules applicable to each state. |
Access the State Garnishment Rules page.
Note. PeopleSoft delivers and maintains state garnishment rules for child support, federal tax levy, state tax levy, student loan, AWG, and creditor garnishments; however, you can modify the accumulators that hold disposable earnings, or create new accumulators. If you create new disposable earnings accumulators, you will need to update the state garnishment rules to incorporate these accumulators.
Garnish Law Source |
Select the state that governs the garnishment laws or select Federal for the federal law. |
Garnishment Type |
Select the type of garnishment to associate with a rule. Valid values are: AWG - Wage Garnishment, Chapter 13 Bankruptcy, Child Support, Creditor Garnishment, Dependent Support, Spousal Support, Student Loan, Tax Levy, and Wage Assignment. |
Disposable Earning |
Select the disposable earnings accumulator that applies to the state and garnishment type. Valid values are: All Wages, Federal DE, Federal Tax Levy DE, Taxes + 401K DE, Taxes + Deductions DE, Taxes + Health + 401K DE, Taxes + Health + Union Dues DE, Taxes + Health Ins DE, Taxes + Health Ins + Pension DE, Taxes + Health Ins Order DE, and Taxes + Union Dues DE. Note. The only disposable earnings accumulators that are available are those with a Category of GDE (Garnishment Disposable Earnings). |
Garnishment Rule |
Select a garnishment rule corresponding to the state, garnishment type, and disposable earnings selected. Note. The garnishment rules available are those defined on the Garnishment Rule and Rule Calculations pages. |
Garnishment Rule Name |
Enter the name of the garnishment rule. This is the name that will be displayed on the Assignment page of the Assign Garnishments USA component (GPUS_GRN). |
This section provides an overview of garnishment proration rules and discusses how to define garnishment proration rules.
To maintain garnishment proration rules, use the Proration Formula USA (GPUS_GRN_PRORUL) component.
Because garnishments cannot go into arrears, some states require that employers prorate an employee’s garnishments when insufficient funds are available to cover all garnishments of the same type. Proration rules are used to calculate the amount to be deducted for each garnishment.
Note. If there are multiple garnishments of the same type and you enter positive input for one of them, proration does not occur automatically. You must manually calculate the proration based on the initial row of positive input and insert a row of positive input for all garnishments of that type.
Page Name |
Object Name |
Navigation |
Usage |
Proration Formula USA |
GPUS_GRN_PRORUL |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishments/Court Orders, Proration Formula USA, Proration Formula USA |
Define proration formulas by state and garnishment type. |
Access the Proration Formula page.
Note. Global Payroll for United States delivers and maintains garnishment proration rules for support and creditor garnishments.
Proration Formula |
Select the formula to use to prorate garnishments for the state and Garnishment Type displayed at the top of the page. Valid values are all formulas with a Category of GPR (Garnishment Proration Formula). Note. In Global Payroll you define formulas using the Formulas component (GP_FORMULA). |
See Defining Formula Elements.
This section discusses how to define document details.
To create document details, use the Document Details Table USA (GPUS_GRN_DOCTBL) component.
Page Name |
Object Name |
Navigation |
Usage |
GPUS_GRN_DOCTBL |
Set Up HRMS, Product Related, Global Payroll, Garnishments/Court Orders, Document Details Table USA, Document Details Table USA |
Enter garnishment document detail information. |
Access the Document Details Table page.
On the Document Details Table page, create garnishment order details to document the garnishment.
Note. You define fields to record details of a garnishment order on the Document Details Table page; you specify the value of these fields on the Assignment page of the Assign Garnishments USA component (GPUS_GRN) when you assign a garnishment to a payee. For example, you can define a field called Court Name on the Document Detail Table page; then, when you assign a garnishment, you can enter the name of the court that ordered the garnishment.
Note. Select the Default check box on the Document Details Table page to make a document detail field appear by default on the Assignment page of the Assign Garnishments USA component (GPUS_GRN). There can be only one default selection.
See Also
Entering Garnishment Assignments
This section discusses how to define correspondence types.
To create correspondence types, use the Correspondence Type Table USA (GPUS_GRN_CRTTBL) component.
Page Name |
Object Name |
Navigation |
Usage |
GPUS_GRN_CRTTBL |
Set Up HRMS, Product Related, Global Payroll, Garnishments/Court Orders, Correspondence Type Table USA, Correspondence Type Table USA |
Enter correspondence types for garnishments. |
Access the Correspondence Type Table page.
On the Correspondence Type Table page, create fields to document who, when, and how an organization has communicated to payees or the issuing agency regarding a garnishment order.
Note. You define fields to record your communication about a garnishment order on the Correspondence Type Table page; you specify the value of these fields on the Assignment page of the Assign Garnishments USA component (GPUS_GRN) when you assign a garnishment to a payee. For example, you can define a field called EMSENT (Email Sent) on the Correspondence Type Table page; then, when you assign a garnishment, you can summarize or attach any emails you send.
Note. Select the Default check box on the Correspondence Type Table page to make a correspondence type field appear by default on the Assignment page of the Assign Garnishments USA component (GPUS_GRN). There can be only one default selection.
See Also
Entering Garnishment Assignments