on 09-28-2017 4:42 PM
Has any SAP US Payroll consultant or customer created a special garnishment rule (T5UGB) to meet the somewhat new (7/1/2016) California State Creditor Garnishment rule of "Maximum amount that can be deducted from weekly wages is lesser of (1) 25% of disposable earnings or (2) 50% of the amount by which disposable earnings for the week exceed 40 times the state minimum hourly wage" as if so would appreciate if you could provide some insights. I reached out to several customers who were not complaint in this area as sadly SAP leaves customer to track and configure all the garnishment updates themselves.
Hello,
I've attached a possible solution which is built on the premise of using the special rule functionality to provide fields on infotype 195 to support the requirement. With the ability to maintain the master data for hours and minimum rates, you can accommodate various payroll frequencies. The drawback is when the hourly rates increase, you will need to copy infotype 195 and adjust the rate.
Attached are the screen captures from my PDF solution.ca-creditor-garn-1-of-8.pngca-creditor-garn-2-of-8.pngca-creditor-garn-3-of-8.pngca-creditor-garn-4-of-8.pngca-creditor-garn-5-of-8.pngca-creditor-garn-6-of-8.pngca-creditor-garn-7-of-8.pngca-creditor-garn-8-of-8.png
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Hi Jarret,
You need to set-up a Non-Exempt model in table V_T5UG3 as mentioned below and assign it to new rule that you would assign to CA Creditor Garnishment along with existing disposable net model in table V_T5UGA.
Table V_T5UG3:
Nonexempt amount: ZCR0 (CA - 25% Net or 40x SMW)
Under Limit 1-
Indicator: 1 (Exempt)
Value: 75.00
Unit: 1 (Percent of net)
Under Federal Minimum Wage-
Min hours: 40
Hourly wage: 10.50 (this is 2017 year State Minimum Wage for CA and needs to be updated as per IRS changes)
Table V_T5UGA:
Country: US
State: CA
Order Type: CR
Rule: 001 (Use any 3 character ID or 3 digit number)
Model disposable net: CACR (No change, use existing one as it is that is being used for CA Creditor)
Model nonexempt amount: ZCR0 (Created in table V_T5UG3)
Now you can test this rule in IT0195 for CA Creditor garnishment order.
Hope this helps.
Thanks,
Ameet
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