Garnishment Process and Setup in HR
Tax levy
Set up a Tax Levy assignment (HRPYPR, Miscellaneous Payroll tab). Additional information is needed in order to process the table entries for IRS tax levies. This information is stored in additional fields on the employee assignment.
Enter a Begin Date and an End Date to indicate the effective date range of the assignment.
Select CDH Type DEDU to indicate it's a deduction.
Enter the CDH Assignment. For example, 2830.
Enter the flat dollar amount in Amount.
In Amount(A)/Percent(P), enter A for amount.
If applicable, enter the case number in Tracking #.
Enter the Vendor.
Enter the Tax Levy limit in Limit.
Select R in Per for the limit to be on an inception-to-date basis.
In Special Code 2, enter a two-character code for the filing status plus a two-digit code for the number of exemptions. For example, if the employee is married filing jointly with two dependents, enter MJ01.
SI: Single
MJ: Married Filing Jointly
MS: Married Filing Separately
HH: Head of Household
In Special Code 3, enter the year the tax was levied in YYYY format (for example, 2024).
Press Enter to save.
Child support
Set up a Child Support assignment (HRPYPR, Miscellaneous Payroll tab). Additional information is needed in order to process the table entries for child support garnishments. This information is stored in additional fields on the employee assignment.
Enter a Begin Date and an End Date to indicate the effective date range of the assignment.
Select CDH Type DEDU to indicate it's a deduction.
Enter the CDH Assignment for each child support garnishment. For example, 2800, 2802, 2804, 2806, 2808.
Enter the Amount as a flat amount or percentage. For a percentage, enter the exact percentage. Do not convert to a decimal. For example, enter 10.00 for 10%.
In Amount(A)/Percent(P), enter A if you entered a flat dollar amount or P if you entered a percentage in the Amount field.
If applicable, enter the case number in Tracking #.
Enter the Vendor.
Enter the garnishment limit in Limit, if applicable.
Select R in Per for the limit to be on an inception-to-date basis.
Enter N in Spec Code 02. (This is required)
Enter N in Spec code 03. (This is required)
Press Enter to save.
Student loan garnishments
Set up a Student Loan garnishment assignment (HRPYPR, Miscellaneous Payroll tab). Additional information is needed in order to process the table entries for Student Loan garnishments. This information is stored in additional fields on the employee assignment. There are 5 student loan garnishment deductions defined. Three calculate the amounts automatically, two are for manual flat amounts. If you need more garnishments (for example. if an employee has 5 active at one time) you'll need to create a new deduction code on PYUPDD.
Enter a Begin Date and an End Date to indicate the effective date range of the assignment.
Select CDH Type DEDU to indicate it's a deduction.
Enter the CDH Assignment for each student loan garnishment. For example, 2820, 2822, 2824, 2826, 2828.
Enter the Amount as a flat amount or percentage. For a percentage, enter the exact percentage. Do not convert to a decimal. For example, enter 10.00 for 10%.
In Amount(A)/Percent(P), enter A if you entered a flat dollar amount or P if you entered a percentage in the Amount field.
If applicable, enter the case number in Tracking #.
Enter the Vendor.
Enter the garnishment limit in Limit, if applicable.
Select R in Per for the limit to be on an inception-to-date basis.
Press Enter to save.
Creditor garnishment
Set up a Creditor garnishment assignment (HRPYPR, Miscellaneous Payroll tab). There are two types of creditor garnishments. Auto Creditor garnishment will calculate the garnishments off a percentage amount of the disposable income. Additionally, there are two flat dollar creditor garnishments which must have the amount keyed into the employee assignment. There are 5 creditor garnishment deductions defined. Three calculate the amounts automatically, two are for manual flat amounts. If you need more garnishments (for example, if an employee has 5 active at one time) you'll need to create a new deduction code on PYUPDD.
Enter a Begin Date and an End Date to indicate the effective date range of the assignment.
Select CDH Type DEDU to indicate it's a deduction.
Enter the CDH Assignment for each creditor garnishment. For example, 2840, 2842, 2844, 2846, 2848.
Enter the Amount as a flat amount or percentage. For a percentage, enter the exact percentage. Do not convert to a decimal. For example, enter 10.00 for 10%.
In Amount(A)/Percent(P), enter A if you entered a flat dollar amount or P if you entered a percentage in the Amount field.
If applicable, enter the case number in Tracking #.
Enter the Vendor.
Enter the garnishment limit in Limit, if applicable.
Select R in Per for the limit to be on an inception-to-date basis.
Press Enter to save.
Garnishment setup
IRS tax levy
Set up the Rate Tables (PYUPDD). The calc code calculates the deduction amount based on the percentage and state limit as defined on the deduction definition screen (PYUPDD). Tax levy garnishment codes have special calculation codes that follow federal guidelines for calculating tax levy amounts. If the percentage amount and state limit change, you need to update them on the deduction definition screen. This needs to happen after the payroll has already been processed which needs to use the old rates, and before the payroll has been processed that needs the new rates.
Go to the deduction definition screen (PYUPDD).
Pull up the record to update. For example, 2830.
Update Calc Code, as applicable, with new rates.
Press Enter to save.
Child support
Set up the Rate Tables (PYUPDD). The calc code calculates the deduction amount based on the percentage and state limit as defined on the deduction definition screen (PYUPDD). If the percentage amount and state limit change, you need to update them on the deduction definition screen. This needs to happen after the payroll has already been processed which needs to use the old rates, and before the payroll has been processed that needs the new rates.
Go to the deduction definition screen (PYUPDD).
Pull up the record to update. For example, 2800, 2802, 2804, 2806, 2808.
Update Value 01, Value 02 and Value 03, as applicable, with new rates.
Press Enter to save.
Student loan garnishments
Set up the Rate Tables (PYUPDD). The calc code calculates the deduction amount based on the percentage and state limit as defined on the deduction definition screen (PYUPDD). Student loan garnishment codes will automatically calculate the student loans at 15% of disposable income. If the percentage amount and state limit change, you need to update them on the deduction definition screen. This needs to happen after the payroll has already been processed which needs to use the old rates, and before the payroll has been processed that needs the new rates.
Go to the deduction definition screen (PYUPDD).
Pull up the record to update. For example, 2820, 2822, 2824, 2826, 2828.
Update Value 01, as applicable, with new rates.
Press Enter to save.
Creditor garnishments
Set up the Rate Tables (PYUPDD). The calc code calculates the deduction amount based on the percentage and state limit as defined on the deduction definition screen (PYUPDD). Creditor garnishment codes will automatically calculate the creditor garnishment at 15% of disposable income. If the percentage amount and state limit change, you need to update them on the deduction definition screen. This needs to happen after the payroll has already been processed which needs to use the old rates, and before the payroll has been processed that needs the new rates.
Go to the deduction definition screen (PYUPDD).
Pull up the record to update. For example, 2840, 2842, 2844, 2846, 2848.
Update Value 01, as applicable, with new rates.
Press Enter to save.