Calculating Federal Tax Levy Withholdings in Payroll

I don't know how the Tax Levy deduction amount is being calculated.

How do you calculate the Tax Levy deduction withholding in Earnings and Deductions in the payroll?

• Payroll

• Payroll Start and Status

• Deduction and Benefit Master 

• Employee Deductions

• Tax Tables

1. In the Deduction and Benefit Master (Payroll > Payroll Setup > Deduction and Benefit Master). Search for the Tax Levy Deduction code. Click Accept. 

2. Verify the Category is 05-Garnishments and the Calc Code is 51-Federal Tax Levy. Note the State Code. 

3. Go to Employee Deductions (Payroll>Employee Maintenance>Employee Deductions) 

4. Search for the employee and Tax Levy deduction. Click Accept. 

5. Note the number in the Exceptions field and Marital Status.  

   1. Example, this employee has 0 exemptions and has a Marital Status of S-Single. 

6. Go to Tax Tables (Payroll > Payroll Setup > Income Tax Tables > Tax Tables)

   1. Search for the State Code from Step 2. and Marital Status from Step5. Find the most recent Effective Dated table. 

   2. Click Calc in the toolbar. 

   3. Note the Amount Exempt from Levy based on the Exemptions found in Step 5. 

      1. Example, since the employee has 0 exemptions, say the Amount Exempt from Levy for 0 Exemptions is 500.00.

7. Go into Payroll Earnings and Deductions for the Example Employee (Payroll>Payroll Processing>Payroll Start and Status) Search for the run and warrant. Click Accept. Click Change. Click Earnings and Deductions.

8. Search for the Employee. Click Accept. Click the Withholdings tab. Double click on the Tax Levy Deduction. 

9. Note the Deduction Gross amount and subtract the amount from step 6.c.

   1. Example, The deduction gross amount is 1,500.00. 

      1. Take the Deduction gross minus the Amount Exempt from Levy of 500.00 (1,500-500= 1,000)

         1. $1,000.00 would be the amount withheld.