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