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Oct 27, 2019 at 12:57 PM

Canada Ontario Garnishments Deductions issue

85 Views Last edit Oct 29, 2019 at 01:15 PM 2 rev

Hi All,

We have an issue related to Ontario Garnishments deduction. Requirement is: When Child Support is on priority 1 deduction and has max cap of 50% on disposable net, the creditor deduction should not be deducted, as the overall deduction for Ontario garnishment should be at max cap of 50% only.

Issue 1: When Child Support is set @ 50% deduction, and also the creditor deduction is set @ 20% in the IT67, the system should consider to deduct only the child support of 50% on disposable net, and should not deduct 20% of creditor until the child support is changed to inactive/completed.

Issue 2: When child support is set with a flat amount and creditor deduction is set @ 20% to deduct. The system should deduct only the child support flat amount on priority 1 and then deduct any reminder on disposable net of 20% for creditor, in case the flat amount is lower than the 20% of creditor deduction.

Eg Calculation: Child support Flat amt= $20, Creditor 20% on disposable net comes to $30. Here $30-$20= $10 remaining, which should be deducted towards the creditor pay. So, result should be Child support deduction= $20, Creditor deduction= $10.

Currently in the system: The child support and the creditor deductions are looked as individual deductions (Though the priority 1 is set for Child support deduct first) and has no dependency relationship on each other to behave as expected in issue 1 and 2 .

Request to guide me how to resolve these issues and in which step in SAP Canada Payroll Garnishments, we can set these conditions to handle both the above scenarios.

Your help here is greatly appreciated.