Creditor Garnishment Withholding is Zero

Creditor garnishment is calculating the withholding amount as zero for an employee.

• Enterprise ERP Payroll

• Creditor Garnishment - calc code 50

• Child Support Garnishment - calc code 52

• Earnings and Deductions

• Multiple Garnishment Deductions

When an employee has multiple garnishment deductions, the user must consider an accumulative disposable, or gross income percentage in order to properly withhold a creditor garnishment.

When an employee has multiple garnishment deduction codes, the withholding amount of the first deduction code, can not be greater than the percentage defined for the 'Disp Income Percent', or the 'Gross Income Percent' field in Employee Deductions, or the second garnishment will not have a withholding amount. The withholding of the first garnishment must be considered when adding the second garnishment as this will have a direct impact on the second garnishment's withholding amount.

For example, if an employee is linked to deduction 6000 - child support (calc code 52) and deduction 6100 - creditor garnishment (calc code 50), both with gross wages of $1,000. You want the child support garnishment to take a flat $100.00 and the creditor to take 15% (150.00) of the disposable income. If you set up the deduction 6100 to take 15% of the disposable income the calculation is incorporating the $100.00 that was already withheld in deduction 6000 (10%) of the disposable income 100/1,000 = 0.10 (10%).

In order to properly take 15% of the disposable income for deduction 6100 you would need to increase the defined percentage in Employee Deductions to 25% because the first $100.00 acts as 10% of the disposable income. You will then have 15% left for deduction 6100 to take $150.00.