A garnishment is a legal order to withhold a specified sum from your wages to satisfy a debt in accordance with the federal wage garnishment law.
Levy, Earnings Withholding Order, and Wage Assignment are all legal terms for a garnishment.
To garnish an employee's wages
- Create a separate deduction specifically for the garnishment. (Rate is amount, amount per period.)
Note: Do not add the deduction to the employee's record.
- Calculate payroll for the employee and view the calculation.
- Determine the difference between the wages and the amount which the employee is allowed to keep, per IRS instructions.
- Add the deduction to the calculation for the difference.
- Save and Close the deduction.
- Verify the calculation and Save and Close the calculation.
- Pay the calculation.
- If needed, edit the employee's calculation each period to ensure the deduction amount is correct
- Remit the garnishment and create the AP Liability