Setting Up Garnishments

This chapter provides an overview of garnishments and discusses how to assign court-ordered garnishments.

Click to jump to parent topicUnderstanding Garnishments

This section discusses:

Click to jump to top of pageClick to jump to parent topicGarnishments in Spain

When a payee owes money to a third party for court-ordered obligations, such as child support, the employer might be required to deduct part of what is owed before the payee receives payment. The court order establishes the amount of the deduction and how it is deducted from a payee's salary. The deduction, known as a garnishment, is taken every month, according to the Ley de Enjuiciamiento Civil, articles 607 and 608. Article 607 pertains to garnishments to be applied to income received due work. It requires that the size of the deduction depend on a payee's earnings and the number of dependents, and establishes a guaranteed net. Article 608 pertains to alimonies (spouse or child support) that can be deducted directly from the net.

The size of the deduction depends on the payee's earnings and the number of dependents.

Use the Assign Court Order ESP (GPES_GRN_DATA) component to assign garnishment deductions to a payees.

See Assigning Court-Ordered Garnishments.

Click to jump to top of pageClick to jump to parent topicDelivered Garnishment Deductions

This table lists the delivered garnishment deductions:

Garnishment Deduction

Description

RETJ JUDCL

This deduction represents an amount, ordered by court, to be paid for any cause except child support (RETJ ALIM) or spousal support (RETJ CNYG).

RETJ CNYG

This deduction represents an amount, ordered by court, to be paid to a former spouse after a divorce settlement. This deduction affects the calculation of the tax withholding percentage and the net calculation.

RETJ ALIM

This deduction represents an amount, ordered by court, to be paid for child support. This deduction affects the calculation of the tax withholding percentage and the net calculation.

RETJ CNYG ND

This deduction represents an amount, ordered by court, that is paid (outside of payroll) to a former spouse after a divorce settlement. This deduction affects only the calculation of the tax withholding percentage.

Use this deduction instead of the RETJ CNYG deduction when you do not want to discount the deduction from the net but still want to enter the deduction so that it affects tax calculations.

RETJ ALIM ND

This deduction represents an amount, ordered by court, that is being paid (outside of payroll) for child support. This deduction affects only the calculation of the tax withholding percentage.

Use this deduction instead of the RETJ ALIM deduction when you do not want to discount the deduction from the net but still want to enter the deduction so that it affects tax calculations.

PeopleSoft Global Payroll for Spain enables you to enter more than one court-ordered garnishment for the same payee with overlapping timeframes. In this case, the system applies the garnishments in a specific order:

  1. The system applies any alimony established by the court.

  2. The system applies any other types of garnishments in the order determined by the Priority Number field on the Assign Court Order page.

  3. If a payee has multiple garnishments with the same priority, the system applies first in, first out logic and deducts the oldest garnishments first.

You can always stop or cancel a court order by entering a value in the End Date field on the Assign Court Order page.

In the case of retroactive processing the system does not recalculate the value of garnishment deductions. Instead, it maintains the previously calculated value.

Note. The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Spain. Instructions for running the query are provided in PeopleSoft Global Payroll 9.1 PeopleBook.

See Also

Adding Court Order Assignments

Viewing Delivered Elements

Defining Earning and Deduction Elements

Segmentation Triggers with Earning and Deduction Assignments

Click to jump to parent topicAssigning Court-Ordered Garnishments

This section discusses how to:

Click to jump to top of pageClick to jump to parent topicPages Used to Assign Court-Ordered Garnishments

Page Name

Definition Name

Navigation

Usage

Assign Court Order

GPES_GRN_DATA

Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court orders, Assign Court Order ESP, Assign Court Order

Add court order assignments.

Court Order Details

GPES_GRN_CRTORDDTL

Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court orders, Assign Court Order ESP, Court Order Details

Define court order details.

Click to jump to top of pageClick to jump to parent topicAdding Court Order Assignments

Access the Assign Court Order page (Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court orders, Assign Court Order ESP, Assign Court Order ESP).

Court Order

Court Order ID

Enter the unique code for the court order. This is the user key that the system uses for accumulators that determine the recovered amount and pending amount to deduct.

Description

Enter a description of the court order.

Start Date

Enter the date on which the court order takes effect.

End Date

Enter the date to stop the court order.

Priority Number

Set the priority for the garnishment. If more than one court order is assigned to a payee, the priority numbers determine the order in which they are calculated. The lower the priority number, the higher priority the court order has.

Calculation Type

Select the method by which the system calculates the court order. Values are:

Amount: Select to calculate the court order as a fixed amount that can be deducted either one time only or once per month between the start date and end date.

Based on Ranges of SMI (based on ranges of salario minimo interprofesional): Select to calculate the court order as a fixed amount to be deducted as soon as possible, but with respect to article 607 of Ley de Enjuiciamiento Civil.

Percentage: Select to calculate the court order as a percentage of a specific element.

Other: Select to calculate the court order using a set of rules that you define.

Note. The value that you select in this field affects the fields and group boxes that are available on the rest of the Assign Court Order page.

Court Order Calculation

Use the fields in this group box to define how the system calculates the court order.

Note. The fields that are available in this group box depend on the value that you select in the Calculation Type field.

Amount

Enter the monetary amount of the court order.

Currency Code

Enter the currency of the amount.

Percentage

Enter the percentage that the system applies to the specified base element to determine the amount of the court order deduction.

Base Element Type

Enter the type of element that the system uses for the base amount when applying the value you enter in the Percentage field. Values are: Accumulator, Earnings, Formula, and Variable.

Element Name

Enter the element that the system uses for the base amount for the court order.

Amount Type

Select Formula to specify the type of element that the system uses to calculate the court order amount.

Element Name

Enter the formula that the system uses to calculate the court order amount.

Guaranteed Amount Type

Select the type of element the system uses to determine a guaranteed minimum net amount. Values are: Accumulator, Formula, and Variable.

Element Name

Enter the element that determines the guaranteed minimum net amount for the court order. For example, if the court order guaranteed the salario minimo interprofesional (SMI), you could enter the variable REJ VR SMI GARANT in this field because it represents the SMI for payees.

Periodicity

Enter the frequency of the court order deduction. Values are:

One time: Select to deduct the court order amount only once. If you select this value, the system does not calculate the garnishment after the date you enter in the End Date field.

Recurrent: Select to deduct the court order amount monthly between the start date and end date. If you select this value, the system stops deducting the garnishment amount after the date you enter in the End Date field. The system might still calculate the deduction for an unrecovered amount that corresponds to a previous month.

Consider Extra Period

Select to include the court order in extra period processing.

Alimony Details

Alimony

Select to designate the court order as a pension for a spouse or children. This means that the deducted amount with affect the payee's tax calculation because it reduces the payee's withholding percentage.

Type of Alimony

Specify whether the alimony if for Spouse Support or Children Support.

Discount from Payroll

Select to indicate that the court order is managed by the payee outside the PeopleSoft Global Payroll for Spain system.

Note. If you do not select this check box, the system does not perform net validation on the court order.

SMI Scale Range

Use the %Scale1 through %Scale5 fields to enter the percentages that the system applies to the five ranges of SMI. The system populates these fields with default regulatory values. You can reduce the values, but only by 10-15%.

Note. The SMI Scale Range group box appears only if you select the Based on Ranges of SMI value in the Calculation Type field.

Click to jump to top of pageClick to jump to parent topicDefining Court Order Details

Access the Court Order Details page (Global Payroll & Absence Mgmt, Payee Data, Garnishments/Court orders, Assign Court Order ESP, Court Order Details).

Court Order Details

Recipient Tag

Select the ID of the recipient of the court order deduction. Only recipients assigned to the employee are available to select in this field.

See Linking Individual Recipients to a Deduction and a Payee.

Source Court ID and Source Court Name

Enter the ID and name of the court that issued the court order.

Subject

Select a reason for the court order.

File Code

Use the fields in this group box to define the values of the different sections of the court order file code. The file code ensures that banking files that include this court order are transferred to the correct judicial body.