Bankruptcy Order Deductions for the US

Bankruptcy is a federal court procedure that helps individuals get rid of their debts and repay their creditors.

When an individual declares bankruptcy, a trustee of the federal court generally handles the payments to the individual's creditors. Use the Bankruptcy Order secondary classification for these kinds of deductions.

401 (k) Loans

If the employee has a 401 (k) loan amount with a bankruptcy, use the Bankruptcy Order Protected Pay Amount override to enter the flat amount of the 401 (k) loan. This reserves enough money to deduct the loan in the payroll run.