Setting Up the Deduction Table for Garnishment Deductions

To define deduction information for garnishments:

  1. Specify a garnishment deduction priority on the Deduction Table - Setup page.

    1. Enter a number that is large enough to enable the system to deduct taxes and required deductions before it attempts to deduct garnishments in the Deduction Priority field.

    2. Select Garnishment in the Special Processing field.

      This deduction code becomes the default garnishment deduction code.

      Arrears do not apply to garnishment deductions. Instead, establish a proration rule.

      Note:

      (CAN) For Canada, there is no default garnishment deduction code because you can define multiple before-tax and after-tax deduction codes to process garnishments. In addition, proration rules don't apply for Canada.

  2. Assign a garnishment deduction classification on the Deduction Table - Tax Class page.

    1. For the U.S., select After-Tax as the deduction classification. For Canada, select Before-Tax or After-Tax.

      For example, a Canadian child support garnishment might be a before-tax garnishment.

    2. Select None as the Canadian sales tax.

  3. Specify how the garnishment affects taxable grosses on the Deduction Table - Tax Effect page.

    • For U.S. companies, garnishments have no effect on taxable grosses.

    • For Canadian companies: after-tax garnishments have no effect on taxable grosses; before-tax garnishments do affect taxable grosses.

  4. Specify how the system deducts the garnishment from pay on the Deduction Table - Process page.

    1. Don't select the Partial Deduction Allowed check box.

    2. Select the Deductions Taken From Sep Chk (deductions taken from separate check) check box for U.S., Canada, and U.S. federal government.

    3. Don't select the Deduction Arrears Allowed or Stop Deduction at Termination check boxes.

      (For Canadian processing, this would be the recommended setup).

    4. The Maximum Yearly Deduction field should be left blank.

      Define the garnishment limit on the Garnishment Specification Data page when setting up an employee's garnishment.

Note:

Don't specify garnishment withholding frequencies on the Schedule page in the Deduction Table component (DEDUCTION_TABLE). Define the withholding frequency for garnishment deductions at the employee level on the Garnishment Specification Data page.

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