PeopleSoft Global Payroll for Mexico 9.1 PeopleBook

Understanding Garnishments

This chapter discusses:

Garnishment types.
Calculation of garnishments.
Creation of new garnishments.
Delivered garnishment elements.

Garnishment Types

Garnishments are typically defined in one of these ways:

As a percent of total of gross earnings.
As a fixed quantity.
As a percentage of net pay.
As the total amount or percentage of a fixed set of earnings or deductions.
As a percentage of the payee's compensation.

Global Payroll for Mexico delivers five sample garnishment elements. You can modify these elements to fit your needs, or use them as models for creating your own garnishments.

Note. These garnishment types apply to all kinds of payroll processes: regular payroll, special payrolls, Christmas bonuses, termination pay, and so forth.

Calculation of Garnishments

Global Payroll for Mexico delivers the deduction element PENSION ALIM to calculate garnishments. To trigger this garnishment, you must assign the garnishment to a payee using the Earning/Deduction Assignment page, because the definition of the garnishment element is By Payee in the garnishment element group KY DED GRALES.

Creation of New Garnishments

If you need to create your own garnishment, use the delivered garnishment PENSION ALIM as the model. To create a new garnishment:

Create a deduction defined as Base times Percent on the Calculation page in the Deduction component.
To calculate the base, first create an accumulator (for example, the delivered accumulator PERC PENSION ALIM) containing all of the earnings on which the garnishment is based minus all pretax deductions (for example, the delivered accumulator DED PENSION AI).
This accumulator is the base for the garnishment tax, so you should then create a formula to apply tax formulas to this base (for example, the delivered formula PA FM IMP PERC).

The garnishment base is then the earnings accumulator (PERC PENSION ALIM) minus the taxes generated by this accumulator (PA FM IMP PERC), minus the accumulator that contains the deductions after taxes (for example, the delivered accumulator DED PENSION DI).
Assign this deduction to a recipient using the Recipients page in the Deductions component.

Delivered Garnishment Elements

This section discusses:

Delivered garnishment deductions.
Delivered garnishment process lists and sections.

Note. The delivered garnishments for Mexico are defined as PeopleSoft Delivered/Not Maintained. Therefore, you can modify the elements to fit your needs. You can also create new garnishment elements using the delivered elements as your guide.

Delivered Garnishment Deductions

Global Payroll for Mexico delivers five garnishment elements:

Deduction	Description
PENSION ALIM	This element is used to calculate a garnishment (deduction) defined as a percentage of a base (Base times Percent). The base is returned by the formula PA FM BASE PENSION, and the percentage is contained in the variable PA VR % PENSION 1.
	The formula PA FM BASE PENSION returns the value of the garnishable base. It is calculated by subtracting the formula PA FM IMP PERC and the accumulator DED PENSION DI from the accumulator element PERC PENSION ALIM (PA FM BASE PENSION = PERC PENSION ALIM − PA FM IMP PERC − DED PENSION DI).
	PERC PENSION ALIM: Accumulator storing garnishable earnings minus pretax deductions. (Pretax deductions are contained in the accumulator DED PENSION AI.) PA FM IMP PERC: Formula that calculates the garnishment tax (a tax on the garnishment base stored in the accumulator PERC PENSION ALIM). DED PENSION DI: Accumulator containing after tax deductions.
	Note. In the delivered garnishment element PENSION ALIM, the percentage is a variable that can be changed as required, or it can be overridden at the payee level.
	Note. You must select the elements that form the base of this garnishment by adding them to the accumulator PERC PENSION ALIM. In addition, add the taxable part of these elements to the accumulator BASE IMP PEN ALIM, which is used in the formula PA FM IMP PERC.
	Note. To trigger this garnishment, you must define the garnishment (deduction) recipients. To define deduction recipients, define a recipient ID on the Deduction Recipients page in Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Banking, Deduction Recipients. Then, assign the recipient ID to individual payees on the Assign Deduction Recipients page in Global Payroll & Absence Mgmt, Payee Data, Net Pay/Recipient Elections, Assign Deduction Recipients.
PENSION C FI	This element is used to calculate a garnishment with a calculation rule of Amount. The amount is assigned at the payee level.
PENSION NETO	This element is used to calculate a garnishment defined as a percentage of net pay—that is, a garnishment with a calculation rule of Base times Percent, in which the base is the net pay accumulator NETO. The percentage is contained in the variable PA VR % PENSION 2.
PENSION T − I	This element is used to calculate a garnishment defined as a percentage of Total Earnings − Taxes (that is, a garnishment with a calculation rule of Base times Percent). The base is calculated by the formula PA FM PENSION T-I (Total Earnings minus ISR Taxes minus IMSS Taxes, or TOTAL PERCEPCIONES − ISR RETENIDO − CUOTAS CYV − CUOTAS EYM). The percentage is contained in the variable PA VR % PENSION 3.
PENSION TOT	This element is used to calculated a garnishment defined as a percentage of total earnings—that is, a garnishment with a calculation rule of Base times Percent, in which the base is the total earnings accumulator TOTAL PERCEPCIONES. The percentage is contained in the variable PA VR % PENSION 4.

Delivered Garnishment Process Lists and Sections

The section containing garnishments for Mexico is DESPUES IMPUESTOS. This section is encountered in these process lists:

Process List	Description
NOMINA	Main process list for payroll elements
NOMINA ESPECIAL	Special payroll process list

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