How to Set up a Federal Levy

Begin by navigating to the employee's record → expand the pay setup section → select the (1.) adjustments page. Once there, click the (2.) icon to open the "add adjustment" wizard. 

Within the adjustment dropdown, select a levy adjustment type. 

*Note* The adjustment types listed within the dropdown are driven by what has been added within Enterprise admin. If a levy adjustment is not listed, please see your Enterprise Administrator to have this added. 

The frequency should always match the frequency with which you pay the employee - daily, weekly, bi-weekly, semi-monthly, or monthly.

Once you have completed filling out the basic adjustment information, select finish to complete the setup. 

With the new levy added, confirm the (3.) sequence and (4.) max lifetime in the detailed adjustment. 

Why enter a sequence?

When an employee has multiple adjustments setup on their record, how does Enterprise know which adjustment to garnish first and which to garnish last? Sequence! The sequence determines the priority of an employee's adjustments. 

For example, the image below shows an employee that has multiple child support adjustments added in addition to a levy. Since each child support garnishment is equally important (has equal priority), they are all given the sequence of 1. When the employee is paid, Enterprise will look at the employee's wages and as equitably as possible distribute the earnings amongst the adjustments.

After sequence 1 adjustments are calculated if the employee has garnishable wages remaining, Enterprise will then move on to any adjustments with a sequence of 2 (the levy in this example). This process will continue automatically until either the employee has no garnishable wages left or all adjustments have been fulfilled.  

Why enter a lifetime max?

The levy you receive will list a total owed amount by the Employee. Enter that amount as the lifetime max and Enterprise will automatically calculate and track amounts (week to date, month to date, year to date, and lifetime totals) paid by the Employee. Once the levy amount (max lifetime) has been paid, the adjustment will automatically deactivate and the employee's wages will no longer be garnished. 

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