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SAP Payroll and California Creditor Garnishment

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.

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1 Answer

  • Sep 29, 2017 at 12:27 PM

    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.



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