Understanding Garnishment Setup Steps

To set up garnishments:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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

  6. 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 topics provide detailed information about each of these setup steps.