Garnish Wages

If an employee's wages are garnished, use the following procedure to set this up in payroll:

Create a Payroll Deduction Category, naming it appropriately

Link to a liability account (perhaps just for this purpose)

Indicate The Type of Deduction:

  • Use Equals a Percent if the basis is another wage category
  • Use Equals Dollars if the amount is a fixed dollar amount per pay period
  • Use User-Entered Amount Per Pay Period if the amount varies or is based on the Net pay. You will need to enter the amount in the Select and Edit Paychecks window, every pay period

Indicate a Deduction Limit of No Limit, since the AccountEdge does not need to calculate a cap

Select the Employee button and place a check mark to the left of the employee's name

Select the Exempt button, and verify no exemptions are check marked (unless they should be)

Process payroll

When the payroll process is complete, there will be a liability to pay with same name as the Deduction name you indicated (Pay Liabilities button in Payroll). Click on Pay Liabilities, and place a check mark to pay the this liability. Make the check payable to the agency managing the garnishment. Print check. (If no check is needed, it can be marked as Already Printed, and a non-number identifier can be indicated in lieu of a check number.)