How do I set up the calculation table for creditor garnishment?

Creditor Garnishment

Add the calculation table for garnishing an employee.

Setting up the calculation table for creditor garnishment

1. Open Connect Payroll > Organization > Calculation Tables.

2. Click New (CTRL+N).

3. In the field titled Calculation Table Name, type in the calculation name.

Example: Creditor Garnishment

4. Click the button titled Add a New Rate.

5. In the field titled Not Over, enter $999,999,999.99.

6. Click OK.

7. In the field titled Tax Rate, enter the maximum percent of disposable wages that can be withheld from the employee.

The maximum limit for disposable wages is generally limited to 25% of the employee’s gross wages. However, the maximum limit depends on the garnishment and instructions in the court document.

8. Press Enter.

9. Click to select the Modifiers tab.

10. In the field titled Modifier 1, enter Annual Non-subject Earnings.

11. In the field titled Value, enter 11,310.00.

The Federal Wage Garnishment Law uses $942.50 x 12 months to calculate the amount $11,310. See the Department of Labor website for more information (http://www.dol.gov/whd/garnishment/).

12. Press Enter.

13. Click Save (CTRL+S).

The calculation table to garnish wages is set up.