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How do I setup wage garnishment for child support inside payroll software?

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I have a question. I am trying to set up Payroll Mate and I need to add a wage garnishment for child support for an employee but I’m not sure how to do it. Can you help?
asked in Payroll Software by anonymous

1 Answer

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In this case you will need to add a custom deduction to handle child support.

Please refer to the Payroll Mate Quick Start Guide and take a look at the section “How to custom add a new deduction category”.

Please note that child support takes precedence over most voluntary and involuntary deductions and a higher percentage of the employee's disposable income may be withheld for child support.

Child support is calculated based on “Disposable Earnings”, which are the earnings remaining after withholding for federal income tax, state income tax, SS / Medicare taxes, state SUI and SDI taxes, and any deductions required for state employees' retirement systems.

In summary the steps to create a child support wage garnishment using our payroll software are as follows:

  1. Navigate to the Company setup screen and then to the Deduction Categories tab.
  2. Click the Add button to create a new custom deduction.
  3. Set the Title field to something like “Child Support”.
  4. In most cases you will need to set the Calculation Type to Fixed.
  5. Do not check any boxes under W2 Options.
  6. Do not check any boxes under Exemptions, unless you know for a fact that this wage garnishment is tax exempt (check with the IRS and State DOR when in doubt).
  7. Go to the New/ Modify employee wizard and make sure to check the box for the new wage garnishment under the Deductions screen.
  8. Now when you create a new check, child support will be calculated.

Real Business Solutions Support Team, Makers of W2 Mate and Payroll Mate

 
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