Skip to Content
avatar image
Former Member

Garnishment is not calculating properly as per the rule

Hi Friends,

I have an employee who has 3 debts

1) family support to deduct

2) Arrears family payment

3) Notice of garnishment

The family support amount is for 724.07 which is being deducted.
I can garnish up to 50% of net pay i.e.1432.58.
If I deduct the amount of 1432.58 by the family support deduction of 724.07, Balance amount I can garnish of 708.51.

The notice of garnishment is 20% of net so for it is 573.08. I have enough net left to garnish to cover for it. But I still don't deduct anything.

I have to deduct the notice of garnishment. i.e 10000

Can anybody please help me in this?

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • Feb 26, 2018 at 06:02 PM

    Garnishments can be pretty tricky, since the Garnishment Order can have some "special" provisions that have not been configured for.

    Whenever one of our Users mentions having a problem with an employee's garnishements, the first thing I have to ask is the details of the Garnishments Orders (from the Court or other source). Make sure that you read the Notice of Garnishment to confirm that you can deduct more than 50% of Net, or that the Family Support Garnishment (specially the Arrears) would allow less than 50% of Net.

    To solve some problems, I've had to create new Garnishment Rules (like for a Notice of Garnishment that does not follow the standard 20% Rule but rather a set periodic Amount), but most times, for special cases, the solution can be achieved through playing with the Limits (at the bottom of IT0067). In your scenario, for the Notice of Garnishment, try setting the Limit for "Non-exempt amount" to 55% of Net and then do a Payroll Simulation (with Display Log or with Display Remuneration Statement) to check what would happen. If Family Support allows it, you could also try to set the Limit for an "Exempt amount" to 40% of Net (leaving more available for the Notice of Garnishment), and to a Payroll Simulation to see what would happen.

    You have 3 Garnishment Claims (IT0167), and you can play with Exempt and Non-exempt Limits (% and Amounts) on any of them, but you are responsible to respect the Garnishment Orders and yet not take more than allowed. So you must make sure that you follow the Law (I think tha the Government comes first, then the Family Support, and then the others) and the Garnishment Claims (the Court Orders and other Garnishment Documents), and it is always better to forewarn the employee before PayDay.

    Add comment
    10|10000 characters needed characters exceeded