PeopleSoft Enterprise Global Payroll for United States 9.1 PeopleBook

Setting Up Garnishment Processing

This chapter provides overview of garnishments and garnishment setup steps 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

Assigning Garnishments

Understanding Garnishments

This section discusses:

Delivered garnishment deductions.
Delivered supporting elements.
Garnishment assignments.
Process lists and sections.
Viewing delivered elements.

Delivered Garnishment Deductions

PeopleSoft 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 for the delivered garnishment deduction.

Name	Amount	Pre- and Post- Process Formula
GARNISHMENT Garnishment	Payee-level	Pre-GRN FM PRE PRCS Post-GRN FM PST PRCS

Name

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.

Delivered Supporting Elements

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: AWG - Wage Garnishment Creditor Garnishment Dependent Support Spousal Support Student Loan Tax Levy Wage Assignment
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.

Garnishment Assignments

The garnishment deduction has a calculation rule of Amount, with the Amount Type field 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 ).
Positive input is entered 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.

Garnishment Accumulator for Federal Tax Levies

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.

Process Lists and Sections

The garnishment deduction belongs to the USA STD PAYROLL process list.

It is assigned to the GARNISHMENT section of the process list.

Viewing Delivered Elements

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 9.1 PeopleBook.

Understanding Garnishment Setup Steps

To set up garnishments:

Define accumulators to hold disposable earnings.

In PeopleSoft Global Payroll for United States, disposable earnings are defined as accumulators, and are created by means of the core accumulator definition component (GP_ACCUMULATOR).

PeopleSoft 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 PeopleSoft Global Payroll for United States specify the amount to exempt from disposable earnings.

Note. PeopleSoft Global Payroll for United States delivers and maintains the formulas for calculating exemption amounts. When PeopleSoft Global Payroll for United States 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 Global Payroll for United States 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 Global Payroll for United States 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 Global Payroll for United States 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. PeopleSoft 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. PeopleSoft 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.

Defining Disposable Earnings for Garnishments

This section discusses how to create disposable earnings.

To define disposable earnings for garnishments, use the Accumulators (GP_ACCUMULATOR) component.

Creating Disposable Earnings

In PeopleSoft Global Payroll for United States, disposable earnings are defined as accumulators. PeopleSoft 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.

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 Global Payroll for United States.	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

Setting Up Accumulators

Maintaining Garnishment Rules

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.

Pages Used to Maintain Garnishment Rules

Page Name	Definition Name	Navigation	Usage
Garnishment Rule	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.
Rule Calculations	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.

Defining Garnishment Rule Information

Access the Garnishment Rule page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishments/Court Orders, Garnishment Rules USA, Garnishment Rule).

Enter the description and comments for this garnishment rule.

Note. PeopleSoft Global Payroll for United States delivers many garnishment rules. These rules are delivered and maintained by Oracle.

Defining Rule Calculation Information

Access the Rule Calculations page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishments/Court Orders, Garnishment Rules USA, Rule Calculations).

Calculation Formula

Select the calculation formula to use 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.

Frequency

Select the frequency that applies to the exemption variable. Valid values are Biweekly, Monthly, Semi-Monthly, and Weekly.

Note. The frequency that you select causes annualization or deannualization to occur so that the calculated value is in line with the pay period frequency.

Name

The appropriate variable names automatically appear in this column when the calculation formula is selected.

Numeric Value, Monetary Value, , and Currency Code

Enter a numeric or monetary value and a corresponding currency code for each applicable value.

Maintaining State Garnishment Rules

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 Used to Define State Garnishment Rules

Page Name	Definition Name	Navigation	Usage
State Garnishment Rules USA	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.

Defining State Garnishment Rules

Access the State Garnishment Rules USA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishment/Court Orders, State Garnishment Rules USA, State Garnishment Rules USA).

Note. PeopleSoft Global Payroll for United States 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).

Maintaining Garnishment Proration Rules

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.

Understanding Garnishment Proration Rules

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 multiple garnishments of the same type exist 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 Used to Maintain Garnishment Proration Rules

Page Name	Definition 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.

Defining Garnishment Proration Rules

Access the Proration Formula USA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Garnishments/Court Orders, Proration Formula USA, Proration Formula USA).

Note. PeopleSoft 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.

Creating Document Details

This section discusses how to define document details.

To create document details, use the Document Details Table USA (GPUS_GRN_DOCTBL) component.

Page Used to Create Document Details

Page Name	Definition Name	Navigation	Usage
Document Details Table USA	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.

Defining Document Details

Access the Document Details Table USA page (Set Up HRMS, Product Related, Global Payroll, Garnishments/Court Orders, Document Details Table USA, Document Details Table USA).

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). Only one default selection can exist.

See Also

Entering Garnishment Assignments

Creating Correspondence Types

This section discusses how to define correspondence types.

To create correspondence types, use the Correspondence Type Table USA (GPUS_GRN_CRTTBL) component.

Page Used to Create Correspondence Types

Page Name	Definition Name	Navigation	Usage
Correspondence Type Table USA	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.

Defining Correspondence Types

Access the Correspondence Type Table USA page (Set Up HRMS, Product Related, Global Payroll, Garnishments/Court Orders, Correspondence Type Table USA, Correspondence Type Table USA).

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). Only one default selection can exist.

See Also

Entering Garnishment Assignments