Set up a garnishment

If you have a special situation that requires reducing or increasing the amount of employee income that's exempt from an existing garnishment, contact us.

To set up a wage garnishment:

  1. Read About garnishment orders before you set up a wage garnishment in your payroll account.
  2. In the left navigation bar, click Employees.
  3. Click the employee's name, and then click Edit employee.
  4. Under Does this employee have any deductions?, click the pencil icon to edit a deduction, or click Add a new deduction to add one.
  5. Select Garnishment from the Deduction/contribution drop-down, and then select a garnishment type.

  6. Enter the garnishment details from the court or levy order you received.

    Garnishment details
    Field What to enter
    Description Appears on reports and pay stubs. It's a good idea to enter both the employee and agency names so that you can easily recognize which agency is owed the garnishment.
    Amount Requested Applies to Child/Spousal Support orders only. If allowed by the order, include any administrative fee you add.
    Maximum % of disposable income

    Applies to Child/Spousal Support orders only. The corresponding language in the order is "The total withheld amount, including your fee, cannot exceed __ % of the employee's/obligor's aggregate disposable weekly earnings."
    Total amount owed Applies to Other Garnishment type only.
    Amount per pay period Applies to Other Garnishment type only. Select either $ amount or % of disposable income, and then enter the amount or percentage to withhold per pay period.
    Alternate Garnishment Cap Applies to Other Garnishment type only. Look for a withholding limit or cap on the order you received. The total garnishment cap must include any administrative fee you add.
    Amount Exempt Applies to Federal Tax Levy orders only. Enter the amount that appears in the table included in the order.
    Exempt adjustment

    Only appears if you've contacted us about a special situation that requires reducing or increasing the amount of employee income that's exempt from the garnishment. When you contact us, we'll explain what to enter.

  7. Click OK.
More than one garnishment order

  1. If this is a second garnishment for this employee, select the priority for payment of the garnishments from the Garnishment Weighting drop-down. Be sure to refer to the court or levy order when you select the weighting.
  2. If disposable income isn't enough to satisfy both orders completely

    QuickBooks Online Payroll figures out the maximum that can be withheld from the employee per paycheck and divides the money across the various garnishments depending on the weighting option you select:

    • Named Garnishment is First — named garnishment is withheld from each paycheck before any other garnishment.
    • Pay both garnishments equally — QuickBooks Online Payroll will figure out the maximum that can be withheld and will apportion the money equally to each garnishment.
    • Pay pro-rated amounts for each garnishment — QuickBooks Online Payroll will figure out the maximum that can be withheld and will apportion the money equally to each garnishment according to the ratio of the amounts of the garnishments. For example, if one garnishment is for $500 and the other is for $700, the ratio is 5 to 7.
  3. Click OK.

See also

 


Did this help you?YesNo



Still stuck? Contact us