Assigning Garnishments

This chapter provides an overview of garnishments and discusses how to:

Assign garnishments.
View garnishment information.
Process one time garnishment overrides.

Understanding Garnishments

Because garnishment orders can come from different agencies, each having different reporting requirements, Global Payroll for United States enables you to address the priority of each garnishment received by jurisdiction, type, and date or time of receipt. In the case of multiple garnishments of the same type, the system can determine which proration method to use and when. When funds are withheld, you have the ability to disburse them according to the method and schedule established by the issuing agency.

This section discusses:

Delivered garnishment deductions.
Garnishment types.
Garnishment processing.
Garnishment files.
Viewing delivered elements.

Delivered Garnishment Deductions

Global Payroll for United States delivers the GARNISHMENT deduction to process all types of garnishments. This deduction has a Calculation Rule of Amount, with the Amount Type set to Payee Level.

You assign garnishments payee by payee on the Assign Garnishments USA component (GPUS_GRN).

Garnishment Types

Global Payroll for United States can process several types of garnishments:

Child, spousal, or dependent support.

Court-ordered deductions for support of another person, whether it is a child, ex-spouse, or dependant
Tax levies.

Federal- or state-mandated deductions for delinquent tax payments.
Creditor garnishments.

Deductions derived from an employee not paying an obligation to a creditor.
Administrative wage garnishments.

Federal-mandated deductions for delinquent non-tax debts owed to the U.S. government.
Student loans.

Deductions for delinquent loans for education granted under the Federal Family Education Program.
Bankruptcy order.

Deductions for employee declared bankruptcy, which are paid to a trustee of the federal court handling the payments to the employee's creditors.
Wage assignments.

Voluntary employee deduction based on an agreement to directly transfer part of their wages to another party.

Garnishment Processing

When processing garnishments the system must take into account many aspects of the garnishment:

Garnishment processing for a single garnishment.
Company fees and recipient fees.
Garnishment priority.
Garnishment proration.
Proration rules by state.

Garnishment Processing for a Single Garnishment

The Global Payroll system performs the following steps to process a single garnishment order:

Check the garnishment order type.
Calculate disposable earnings.
Determine exemption rule.
Calculate exempted amount using exemption rule.
Calculate amount available by subtracting exemption amount from disposable earnings.
Calculate total amount required based on the garnishment order.
Calculate the deduction as the lesser of the amounts in steps 5 and 6.

Company Fees and Recipient Fees

Employers and garnishment recipients may charge administrative fees for processing garnishment orders. Global Payroll for United States enables you to define deductions for these fees and assign them to payees on the Fees page of the Assign Garnishments USA component (GPUS_GRN).

Garnishment Priority

When an employee has more than one type of garnishment order, processing priority is based on the value of the Priority field on the garnishment Assignment page. The lower the priority number, the higher the priority.

Note that the system does not assign priorities automatically when a payee has more than one type of garnishment (priorities must be defined manually). However, it does restrict the relative priorities of garnishments under certain conditions:

When a child support garnishment is already in place, and you enter a federal tax levy, the system does not allow you to assign a higher priority to the tax levy than to the child support garnishment.
Similarly, when a federal tax levy is in place, and you enter a bankruptcy order, the system does not allow you to assign a higher priority to the bankruptcy order than to the tax levy.

In these cases, the system uses the Date Established field on the garnishment Assignment page to control the priorities. For example, if a federal tax levy is established on 1 March 2004, and a child support garnishment is established on 1 January 2004, you cannot give the tax levy priority over the child support garnishment.

Garnishment Proration

Proration occurs when an employee has more than one garnishment of the same type and the total amount available to pay those garnishments is insufficient. Proration occurs most often for child support and writ of garnishment. As a result, states have issued rules about what to do when an employee has more then one child support order or more than one writ of garnishment.

PeopleSoft delivers all of the necessary proration rules for all of the states. For states that do not specify proration rules for a specific garnishment type, the system automatically withholds based on the default proration formula GRN FM FIFO ALL (First Come First Serve All). The rule for this proration formula is: Pay total amount of first garnishment received, based on Received Date, followed by other garnishments in order of receipt until the maximum is reached.

Note. You can view the delivered proration formulas defined for each type of garnishment at the state level on the Proration Formula page. For garnishment types for which a state does not provide a rule, you can override the default proration formula (GRN FM FIFO ALL) by creating your own proration rules.

See Maintaining Garnishment Proration Rules.

Garnishment Files

In Global Payroll for United States, you use the Create Garnishment File USA page to set up and run the garnishment file process for all states that require EFT transfer of garnishment data.

See Creating Garnishment Files.

Viewing Delivered Elements

PeopleSoft 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.

Assigning Garnishments

This section discusses how to:

Enter garnishment assignments.
Enter calculation details.
Define garnishment fees.
Apply garnishment rules.
Enter the garnishment recipient.

Pages Used to Assign Garnishments

Page Name	Object Name	Navigation	Usage
Assignment	GPUS_GRN_INFO	Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court Orders, Assign Garnishments USA, Assignment	Enter basic information about the garnishment order, including received date and time, document details, and attorney information.
Calculations	GPUS_GRN_CALC	Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court Orders, Assign Garnishments USA, Calculations	Define the deduction schedule and deduction limits.
Fees	GPUS_GRN_FEES	Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court Orders, Assign Garnishments USA, Fees	Define garnishment fees and limits.
Rules	GPUS_GRN_RULEINFO	Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court Orders, Assign Garnishments USA, Rules	Specify the exemption rule state, the garnishment rule, and the proration rule for the garnishment order.
Recipient	GPUS_GRN_PAYINFO	Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court Orders, Assign Garnishments USA, Recipient	Identify the recipient of the garnishment.

Entering Garnishment Assignments

Access the Assignment page.

Note. Define one garnishment assignment for each garnishment order that you receive for a payee. Each garnishment assignment must have a unique garnish ID.

Garnishment ID	Enter a unique ID for the garnishment order/notice.
Garnishment Status	Update this field as the status changes throughout the life of the garnishment. The status affects the processing of the garnishment deduction. Valid values are: Active – Select this value when the garnishment is active for the payee. Completed – Select this value when the garnishment amount is paid in full or the court notifies the employer to stop deductions from the payee. Rejected – Select this value if you cannot comply with the garnishment. Suspended – Select this value to stop processing the garnishment deduction in payroll while preserving the garnishment assignment data. Note. The system only processes garnishments with a status of Active. The system ignores garnishments with a status of Completed, Rejected, or Suspended.
Garnishment Type	Select the type of garnishment received by the employer. Valid values are Writ of Garnishment, Tax Levies, Chapter 13 Bankruptcy, Wage Assignment, Child Support, Spousal Support, Dependent Support, and Student Loan.
Support Type	Support types are only applicable to child support, spousal support, and dependent support. Valid values are Current and Arrears.
Priority	Enter the garnishment processing priority. The priority number you enter here determines the order in which garnishments of different types are processed. The lower the number, the higher the priority. Note. The system determines the order in which to process garnishments of the same type by using proration formulas. See Garnishment Processing.
Date Established	This is the date the court approved the garnishment. Note. The priority of a tax levy in relation to a child support order is based on the day the orders were established. Similarly, the priority of a tax levy in relation to a bankruptcy order is based on the establishment date. See Garnishment Processing.
Received Date and Received Time	Enter the date and time the garnishment is received from the court, authorized agency, or government agency.
Response Date and Response Time	Enter the date and time by which you must let the court, authorized agency, or government agency know whether you can comply with the garnishment order.
Agency Name	Enter the name of the court, authorized agency, or government agency that has legal jurisdiction over the garnishment.
Comments	Enter any notes related to the garnishment.

Document Details

Enter information about garnishment documents by selecting a garnishment detail name and entering the corresponding information in the Value field. For example, select Case Number in the Name field, and enter the number in the Value field.

Note. You define document detail fields on the Document Details Table page, and specify the values of these fields when you assign garnishments to payees on the Assignment page of the Assign Garnishments USA component (GPUS_GRN).

See Creating Document Details.

Correspondence History

Use the Correspondence History group box to document who, when, and how your organization has communicated to payees or the issuing agency regarding a garnishment.

Note. You define fields to record your communication about a garnishment order on the Correspondence Type Table page; you specify the values of these fields on the Assignment page of the Assign Garnishments USA component (GPUS_GRN) when you assign a garnishment to a payee.

See Creating Correspondence Types.

Correspondence Type	Select the type of correspondence.
Date and Time	Enter the date and time of the correspondence.
Comments	Enter comments related to the correspondence.
Attached File	View attached documents related to the garnishment order.
Add Attachment	Click to attach correspondence regarding the garnishment.

Attorney Information

Enter the Name, Country, and Address of the attorney representing the payee.

Entering Calculation Details

Access the Calculations page.

Deduction Start Date

Enter a start date for the deduction.

Deduction Schedule

Deduction Schedule

Select a deduction schedule applicable to the garnishment.

Pay Period

Specify the pay periods in which you would like the garnishment deducted. Valid values are All and the pay period number as determined by the Deduction Schedule. For example, if the deduction schedule is Biweekly, the pay period values are First, Second, and Third (there are a maximum of three biweekly periods in a month). And if the deduction schedule is Weekly, the pay period values are First, Second, Third, Fourth, and Fifth (there are a maximum of five weeks in a month).

Note. You must specify a value for the variable GRN VR PAY PERIOD on the Calendars – Overrides page for the calendar in which you are processing the garnishment. Enter a value of 1, 2, 3, 4, or 5, or a value of 0 for monthly calendars. For example, if the deduction schedule is BiWeekly, and you select Second as the pay period value, you must define the value of GRN VR PAY PERIOD as 2 when you process the second pay period each month.

See Overriding Supporting Elements for a Calendar.

Withholding Calculation

In the Withholding Calculation group box, specify the formula used to calculate the amount for the garnishment based on the court order.

Calculation Formula	Enter the formula used to calculate the garnishment. Valid values are: DE Percentage + Amount – Percent of disposable earnings plus an additional amount. Disposable Earnings Percentage – Percent of disposable earnings. Flat Amount Flat Amount Percentage – Percent of a flat amount. Greater of % DE or Amount – Greater of a percent of disposable earnings or an amount. Greater of % Gross or Amount – Greater of a percent of gross or an amount. Gross Percentage – Percent of gross pay. Gross Percentage + Amount – Percent of gross pay plus an additional amount.
Name	Displays the names of the variables that must be defined based on the calculation formula. For example, if you select a calculation formula of DE Percentage + Amount, you must specify the percentage and the amount.
Frequency	Enter the frequency of the garnishment deduction. Valid values are All, Weekly, Biweekly, Semi-monthly, and Monthly.
Numeric Value, Monetary Value, and Currency	Enter a Numeric Value or a Monetary Value with its corresponding currency code for each variable populated based on the Calculation Formula.

Garnishment Limits

Goal Amount , Currency , and Goal Balance	Enter a goal amount, and its corresponding currency code, to establish the maximum total amount for the garnishment. After the payroll is finalized, the system updates the goal balance, displaying the amount of the garnishment that has been paid to date. When the goal balance equals the goal amount, the system automatically stops taking the deduction. If you do not want to set a goal, leave the fields blank. The Goal Balance appears only after you click Refresh.
Start Date	Enter a start date.
Stop Date	Enter a stop date, or have the system generate a stop date by entering the number of days that the garnishment should remain active in the Stop Days field.
Stop Days	Enter the number of days the garnishment should remain active. If you enter a value in this field, the system automatically calculates the stop date based on the start date. However, if the start date is less than the calendar period start date (as the result of a proration rule, for example, or the stacking of garnishments), the system uses the period start date to calculate the stop date.

Monthly Limits

If there are limits to the amount that can be deducted each month, enter the limit Calculation Formula and the corresponding values for each variable displayed.

Defining Garnishment Fees

Access the Fees page.

Company Fee Calculation

In the Company Fee Calculation group box, enter the Calculation Formula, Frequency, Name, and the Numeric or Monetary Value of the company fee. Also, specify what to do when there are insufficient funds to cover the company fee.

Deduct Fee When Insufficient Funds

If selected and there are not enough funds to cover both the garnishment and the fee, the garnishment amount is reduced by the amount of the fee.

Recipient Fee Calculation

In the Recipient Fee Calculation group box, enter the Calculation Formula, Frequency, Name, and the Numeric or Monetary Value of the recipient fee. Also, specify what to do when there are insufficient funds to cover the recipient fee.

Deduct Fee When Insufficient Funds

If selected and there are not enough funds to cover both the garnishment and the fee, the garnishment amount is reduced by the amount of the fee.

Company Fee Monthly Limit

In the Company Fee Monthly Limit group box, enter the Calculation Formula and the Numeric or Monetary Value of the monthly company fee limit.

Recipient Fee Monthly Limit

In the Recipient Fee Monthly Limit group box, enter the Calculation Formula and the Numeric or Monetary Value of the monthly recipient fee limit.

Applying Garnishment Rules

Access the Rules page.

Exemption Rule State

Identify the state that issued the garnishment. Or select Federal for a federal order.

Garnishment Rule

Select the garnishment rule that applies to this garnishment.

Note. The garnishment (exemption) rules available for selection for the state and garnishment type you are assigning are those that have been linked to the garnishment on the State Garnishment Rules page. For example, if the garnishment type you are assigning is Child Support, and there are two garnishment rules (exemption rules) tied to child support garnishments on the State Garnishment Rules page, both exemption rules will appear in the drop-down list.

See Maintaining State Garnishment Rules.

Proration Formula

Select the proration rule for this garnishment.

Note. The proration rules available for the state and garnishment type you are assigning are those defined on the Proration Formula page. For example, if the garnishment type is Child Support, the Exemption Rule State is CT (Connecticut), and the proration rule for that garnishment type and state is defined on the Proration Formula page as Percentage Current First, this is the proration rule that will appear in the drop-down list.

Note. If you leave this field blank, the system uses the default proration formula GRN FM FIFO ALL (First Come First Serve All).

See Maintaining Garnishment Proration Rules.

Parameters

In the Parameters group box, enter the Variable Name, Frequency, and the Numeric or Monetary Value for the garnishment rule. For example, the number of dependents for a federal tax levy.

Federal Tax Levy Deductions

The first time a federal tax levy is processed, the existing deductions are captured and displayed here. The values displayed depend on how the deductions are calculated. For deductions such as 401K that are set up as percentages, the percent is displayed. For non-percentage deductions, the amount is displayed.

Although these system generated values cannot be changed, they can be adjusted by clicking the Adjustment button. An adjustment row is added to the page for entering the adjustment value.

For example, a payee has an existing health insurance deduction of 35.00 USD. The health insurance company increases the deduction by 10.00 USD. To adjust this amount, click the Adjustment button. On the new row, enter the deduction name, the effective date of the adjustment, and a monetary value of 10.00 USD. If the employee deduction is reduced by 10.00 USD, a negative amount, -10.00 USD, can be entered.

Entering the Garnishment Recipient

Access the Recipient page.

Recipient ID and Add Recipient

Enter the Recipient IDor click Add Recipient to indicate where the garnishment deduction should be sent.

Note. After all the payee's garnishment information is entered on the Garnishment Assignment component, a component interface populates the Global Payroll core element assignment and Supporting Element Overrides pages with the information needed to process each garnishment.

Viewing Garnishment Information

This section discusses how to view garnishment information.

Page Used to View Garnishment Information

Page Name	Object Name	Navigation	Usage
Garnishment Summary USA	GPUS_GRN_SUMM	Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court Orders, Garnishment Summary USA, Garnishment Summary USA	View summarized garnishment information for a payee.

Viewing a Garnishment Summary

Access the Garnishment Summary page.

This page provides a one-line summary of every garnishment a payee has assigned to them. It offers a quick way to view the priority and status of each of the payee's garnishments.

Each garnishment ID is a link that takes you to that exact garnishment instance on the Assignment page, where you can make changes to the garnishment's priority or status.

Add Garnishment

Click to access the Assignment page where you can enter a new garnishment.

Processing One-Time Garnishment Overrides

This section provides an overview of one-time garnishment overrides and discusses how to:

Refund a garnishment on a one-time basis.
Override garnishment amounts.
Suspend a garnishment on a one-time basis.

Understanding One-Time Garnishment Overrides

One-time garnishment overrides provide a way to override the regular calculation of a garnishment order and replace it with a new calculation for a specific pay period. Use positive input to enter one-time overrides for garnishments.

See Working with Positive Input.

Pages Used to Enter One-Time Positive Input

Page Name	Object Name	Navigation	Usage
Positive Input	GP_PI_MNL_ERNDED	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), Positive Input	Enter positive input for an earning or deduction.
Positive Input - Details	GP_PI_MNL_SEC	Click the details button on the Positive Input page.	Enter supporting element overrides.

Refunding a Garnishment on a One-Time Basis

Garnishment amounts withheld in error need to be refunded to the payee. To refund a garnishment amount, specify the name of the garnishment deduction, and enter a negative amount using an Action Type of Add.

Note. When you refund a garnishment using positive input, 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 deduction you are refunding on the Positive Input - Details page of the One Time (Positive Input) component (GP_PI_MNL_ERNDED).

Overriding Garnishment Amounts

Garnishment amounts can be overridden with a new amount for a specific pay period. To override a garnishment amount, specify the name of the garnishment deduction, and enter the amount to withhold using an Action Type of Override.

Note. When you override a garnishment amount using positive input, you must specify the Garnishment ID (GRN VR ID), Garnishment Type (GRN VR TYPE). and the Garnishment Received Date (GRN VR RECDT) of the deduction you are overriding on the Positive Input - Details page of the One Time (Positive Input) component (GP_PI_MNL_ERNDED).

Note. If there are multiple garnishments of the same type and you enter an override 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.

Suspending a Garnishment on a One-Time Basis

Positive input can be used to suspend a garnishment calculation for a specific pay period. To suspend a garnishment, specify the name of the garnishment deduction using an Action Type of Do Not Process.

Note. When you suspend a garnishment using positive input, 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 deduction on the Positive Input - Details page of the One Time (Positive Input) component (GP_PI_MNL_ERNDED).