Gross income percent garnishment withholding is zero

We have a creditor garnishment that is ordered to take 10% of the gross income but the withholding is coming out as zero in the payroll.

• Munis

• Payroll Processing

The Gross Income Percentage calculation is only used by certain states, namely Illinois and New York. The relevant state code must be defined in Deduction and Benefit Master to permit this calculation to work. Additionally, a value must be defined for the Disposable Income Percent field in the Employee Deduction record in addition to the Gross Income Percent. 

1. Access Deduction and Benefit Master; Payroll > Payroll Setup > Deduction and Benefit Master

2. Search on the current garnishment deduction code

3. Click Update.

4. Change State Code. 

5. Click Garnishment Tab.

   1. If both the Disposable Income Percent and Gross Income Percent should be the same for all employees going forward, define each field. This will be how the values default in when records are added in Employee Deductions.

   2. If these will be maintained on the Employee Level, they can be left as is and updated on the Employee Deduction records as needed. 

6. Click Accept.

The calculation for Creditor Garnishment first compares the minimum pay per week (based on Payroll Control Settings) to the Percentage of Disposable Income, and selects the greater of the two. Next, it takes the Disposable Income Percent of the selected value and compares it to the Gross Income Percent calculation, and the lesser of the two will be what is taken in the payroll. If the Disposable Income Percentage is defined as 0 in the Employee Deduction record, it will take 0% of the Disposable Income and withhold nothing.