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Garnishment Calculation Subtask

Use this subtask to view the data from the Garnishment Calculation subtask of the Manage Employee Garnishments record.

Contents

Field Description
Transaction Type

This field displays the transaction type from the main screen. The types are:

  • A: Add transaction
  • D: Delete transaction
  • U: Update transaction
Modified By

This field displays the ID of the user who made the modification on this row.

Date Modified

This field displays the date on which this row was modified.

Transaction Notes

This non-editable field displays the reason for the creation of the Manage Employee Garnishments audit record.  

Garnishment and Employee Information

Field Description
Total Amount Due

This field displays the total amount due for the garnishment. If you have already paid off some of the garnishment amount in another system, through a different Costpoint deduction, or through a garnishment deduction that was assigned to the employee on the Manage Employee Deductions screen, the Total Amount Due is the amount from the order less the total amount already paid for the garnishment. This ensures that the total paid against the garnishment does not exceed the amount specified in the order.

Payroll Year Beginning Bal

This field displays the payroll year beginning balance. This is the employee’s remaining balance for the garnishment as of the first day of the payroll year. This amount, along with the Year-to-Date (YTD) garnishment amount paid, is used to determine the employee’s remaining balance each time the garnishment is computed.

Number of Dependents

This field displays the number of dependents an employee has for this garnishment. Some states require that the garnishment amount be reduced by a dependent exemption amount or a multiple of a dependent exemption amount. This value is multiplied by the Weekly Credit Amount Per Dependent in the Credit Amounts group box to determine the dependent credit amount for the employee’s garnishment.

Employee is Head of Family

If the state specifies a different creditor debt garnishment calculation or limitation rules for employees that are the head of their family, this checkbox is selected.

Employee is Alaska Resident

This checkbox is selected if the Deduction Type is Creditor Debt Garnishment, the Work State is Alaska, and the employee is a resident of Alaska.

Garnishment Amount

This group box displays the garnishment's calculation rules.

Field Description
Calculation Method

This field displays the method used to calculate the garnishment when payroll is computed:

  • REMAIN (Remaining Balance up to Limit): The garnishment amount is based on the amount the employee still owes for the garnishment, limited by the calculated limit amount.
  • PCTGRS (Percent of Gross): The Percentage is multiplied by the employee’s gross wages to determine the garnishment amount.
  • FIXAMT (Fixed Amount): The following calculation is used to determine the employee’s garnishment amount:  

    (Fixed Amount x Pay Frequency from Order) / Employee's Pay Frequency

  • PCTDI (Percent of Disposable Income): The Percentage is multiplied by the employee’s disposable income to determine the garnishment amount.
  • PCTNET (Percent of Net Pay): The Percentage is multiplied by the employee’s net pay to determine the garnishment amount.
Percentage

This field displays the percentage that is used to calculate the garnishment withholding. This percentage is taken from the order.

Fixed Amount

This field displays the fixed withholding amount specified on the garnishment order. When payroll is computed, the following calculation is used to determine the employee's garnishment amount:  

(Fixed Amount x Pay Frequency from Order) / Employee's Pay Frequency

Pay Frequency from Order

This field displays the payment frequency specified on the order. Values are:

  • N: Not Applicable
  • W: Weekly
  • B: Bi-Weekly
  • S: Semi-Monthly
  • M: Monthly

The following calculation is used to determine the employee’s garnishment amount:  

(Fixed Amount x Pay Frequency from Order) / Employee’s Pay Frequency

Override Calculated Pay Period Amount

If this checkbox is selected, the total amount withheld for the support order within a pay period cannot exceed the Pay Period Override Amount. The garnishment limit is not applied to the override amount.

Pay Period Override Amount

This field displays the pay period override amount. This amount is not subject to any garnishment limits.

Garnishment Limit

Field Description
Limit Calculation Method

This field displays the garnishment limit calculation method. The methods are:

  • N (Not Applicable): This method places no limit on the garnishment withholding amount.
  • CRDDBT (Use Creditor Debt Rules): When payroll is computed, the Limit 1 calculation result and the Limit 2 calculation result are compared to the calculated federal Consumer Credit Protection Act (CCPA) limits, and the lowest amount is used as the employee’s garnishment amount.
  • FEDLVY (Use Federal Tax Levy Rules): This method uses the calculation parameters specified in the Federal Tax Levy group box. The federal tax levy calculation is hard-coded on the Compute Payroll application.
  • LESSER (Lesser of Limit 1 & Limit 2): The Compute Payroll application calculates both Limit 1 and Limit 2 amounts, and the garnishment amount is the lesser of the two amounts.

Federal Tax Levy

Field Description
668-W Filing Status

This field displays the status selected by the employee on the 668-W form that was completed upon receiving the levy notice. The statuses are:

  • N: Not Applicable
  • SG: Single
  • MS: Married Separate Return
  • HH: Head of Household
  • MJ: Married Joint Return
  • QW: Qualifying Widow
Date Form 668-W Signed

This field displays the date on which the employee signed the 668-W form.

668-W Exemptions

This field displays the number exemptions claimed by the employee on the 668-W(c)(DO) form. This number is multiplied by the Amount Per Exemption from the Manage Federal Tax Levy Exemptions screen.

The 668-W Filing Status and Date Form 668-W Signed values determine which federal tax levy exemption record is used as the data source.

Spouse is Blind

This checkbox is selected if the employee's spouse is blind. The employee receives an extra exemption amount, which lowers federal tax levy withholding. The employee receives an exemption equal to the amount stored in the 65 Years and/or Blind field on the Manage Federal Tax Levy Exemptions screen.  

Spouse is 65 or Older

This checkbox is selected if the employee’s spouse is 65 or older. The employee receives an extra exemption amount, which lowers federal tax levy withholding. The employee receives an exemption equal to the amount stored in the 65 Years and/or Blind field on the Manage Federal Tax Levy Exemptions screen.

Limit 1

Field Description
Limit 1 Calculation Method
This field displays the calculation used for the first state limit:
  • Not Applicable: The Limit 1 calculation does not apply to the garnishment.
  • G–(MxFMW): Gross – (Limit 1 Weekly Multiplier x Federal Minimum Wage)
  • DI–(MxFMW): Disposable Income – (Limit 1 Weekly Multiplier x Federal Minimum Wage)
  • G–(MxSMW): Gross – (Limit 1 Weekly Multiplier x State Minimum Wage)
  • DI–(MxSMW): Disposable Income – (Limit 1 Weekly Multiplier x State Minimum Wage)
  • G–(MxGMW): Gross – (Limit 1 Weekly Multiplier x Greater of State or Federal Min Wage)
  • DI–(MxGMW): Disposable Income – (Limit 1 Weekly Multiplier x Greater of State or Federal Min Wage)
  • G–FIXAMT: Gross – Fixed Exemption Amount
  • DI–FIXAMT: Disposable Income – Fixed Exemption Amount
  • N–(MxSMW): Net Pay – (Limit 1 Weekly Multiplier x State Minimum Wage)
  • (DI-(MxSMW))xP: Disposable Income – (Limit 1 Weekly Multiplier x State Minimum Wage) x Limit 1 Percentage
Limit 1 Weekly Multiplier

This field displays the minimum wage multiplier specified by the state. This amount is multiplied by the appropriate minimum wage amount to reduce the disposable income used to pay the garnishment.

Limit 1 Percentage This field displays a value when the Limit 1 Calculation Method is set to (DI-(MxSMW))xP: Disposable Income - (Limit 1 Weekly Multiplier x State Minimum Wage) x Limit 1 Percentage.
Limit 1 Weekly Exemption

This field displays the exemption amount specified by the state. For example, an Oregon employee is entitled to an exemption amount of $196.00 of his weekly wages. This means that the employee’s weekly net pay must be at least $196.00.

The Limit 1 Weekly Exemption amount is converted to accommodate the employee’s pay frequency when payroll is computed. For example, if a weekly exemption amount of $100.00 is specified, the Compute Payroll application automatically converts this to $200.00 for an employee with a bi-weekly pay frequency.

Limit 2

Field Description
Limit 2 Calculation Method

This field displays the calculation used for the second state limit:

  • N: Not Applicable
  • PCTDI: Percent of Disposable Income
  • PCTGRS: Percent of Gross
Limit 2 Percentage

This field displays the percentage for the second state limit. This percentage is either applied to gross wages or to disposable income. Most states use the federal CCPA limit for this (25% of disposable income). However, some states use a percentage that is more beneficial to the employee.

Credit Amounts

Field Description
Weekly Credit Amount

This field displays the weekly personal credit amount, which is multiplied by the employee’s number of personal credits to determine the total personal credit amount. Some states specify a weekly fixed credit amount to reduce the garnishment withholding amount.  

Weekly Credit Amount Per Dependent

This field displays the weekly dependent credit amount, which is multiplied by the employee’s number of dependent credits to determine the total dependent credit amount. Some states specify a weekly fixed credit amount to reduce the garnishment withholding amount.

Reduce by All Higher Priority Garnishments

This checkbox is selected if federal or state law mandates that the calculated garnishment withholding amount must be reduced by the employee’s higher priority garnishment amounts.

This option is mandated mainly for student loan garnishment calculations. If an employee has a student loan garnishment along with other garnishments, the student loan garnishment rules specify that the student loan withholding must not exceed the student loan garnishment limit less any higher priority garnishment amounts.  

When an employee has both a student loan garnishment and a support order, the support order always takes precedence, even if the student loan was received first.

Reduce by Higher Priority Federal Tax Levy Amount

This checkbox is selected if federal or state law mandates that the calculated garnishment withholding amount must be reduced by the employee’s federal tax levy withholding amount.

For example, state creditor debt garnishment rules limit the amount that can be withheld from an employee to protect the employee from having too much withheld (and being left with too little net pay). Some states mandate that if an employee has federal tax levy and a creditor debt garnishment and the federal tax levy was received before the creditor debt garnishment (federal tax levy has higher priority), the total of the two cannot exceed the creditor debt garnishment limit. In this situation, states may mandate that the employer must first withhold for the federal tax levy and withhold for the creditor debt garnishment only if the federal tax levy withholding amount is less than the calculated creditor debt garnishment limit.  

Reduce by Medical Insurance Amount

This checkbox is selected if federal or state law mandates that the calculated garnishment withholding amount must be reduced by the total of medical insurance deduction amounts.

Reduce by Support Amount

This checkbox is selected if federal or state law mandates that the employee’s calculated garnishment withholding amount must be reduced by the total of his support order withholdings (if applicable).

For example, state creditor debt garnishment rules limit the amount that can be withheld from an employee to protect the employee from having too much withheld (and being left with too little net pay). Support orders must always have a higher priority than creditor debt garnishments. States mandate that if an employee has a support order and a creditor debt garnishment, the total of the two cannot exceed the creditor debt garnishment limit. Because support orders have a higher priority, the employer can withhold for the creditor debt garnishment only if the employee’s total support order withholding does not exceed the creditor debt garnishment limit.