How to Set up Garnishments

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A generic garnishment is used when an employee's wages should be deducted a defined amount on a recurring basis (e.g. every time the employee is paid). For example, perhaps an employee owes you $1,000 for damaged equipment. Instead of paying the full $1,000 on the next paycheck, they agree to pay $50 back every paycheck until they have repaid the full $1,000.

To add this garnishment, 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.

In this example we are creating a generic garnishment, so from the (3.) adjustment dropdown select Garnish1. Notice that Garnish2 and Garnish3 also listed in the adjustment dropdown. They are here because the same adjustment cannot be added more than once per record. So if this employee requires a second gerneric garnishment we'd select Garnish2 from the adjustment dropdown.

The (4.) frequency is also listed as required and should always match the frequency with which you pay the employee - daily, weekly, bi-weekly, semi-monthly, or monthly.

The (5.) start date determines in what weekend date to begin garnishing. Following our example, when this employee is paid for hours worked in the weekend date 11/24/2015 their wages will be garnished according to the rules established in this adjustment. If this is a temporary garnishment with an established end date, enter it in the end date field and the adjustment will immediately deactivate once the end date has been reached.

Once you have completed filling out the basic adjustment information, select next to continue.

This brings us to the adjustment rule page where users define the exact deduction amount and any directives included with the garnishment.

Following our example, we are going to be (6.) deducting $50 every week until the balance is repaid. To add to this example, let's say we only want to deduct the $50 under the condition that the employee still receives minimum wage after the garnishment. To do this, we will apply a (7.) rule that states only deduct $50 when the employee's hourly rate is greater than or equal to $7.25.

Upon selecting save users will be brought to the final page in the wizard to review the garnishment. Users can edit the garnishment by clicking the pencil icon, or, if the setup looks correct, select finish to officially add the garnishment and exit the wizard.

With the new garnishment added, confirm the (8.) sequence, (9.) period max, and (10.) 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 our generic garnishment. Do the child support adjustments receive priority over the generic garnishment? The answer to this is determined by each adjustments sequence. 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. This process will continue automatically until either the employee has no garnishable wages left or all adjustments have been fulfilled.  

Why enter a period max?

Enterprise adjustments are tracked by weekend date. So for example, let's say our employee turns in a timecard with 40 hours on it for the weekend date 12/6/2105. That timecard is processed by payroll and the full $50.00 is garnished. Now, imagine if the employee turned in an additional timecard for the weekend date 12/6/2015 with 8 hours of additional overtime. Processing that second timecard without a period max would garnish the employee's wages a second time.

By adding a period max we prevent Enterprise from double dipping into the same period. This way, the employee will never be over garnished.

Why enter a max lifetime?

Enterprise automatically tracks the amount garnished on every adjustment, so following our example when we have someone who owes a total fixed amount ($1,000), we enter that as the max lifetime and once that has been garnished the adjustment automatically deactivates.

*Note: If the adjustment you are setting up does not have a "max lifetime," (like the $1,000 in this example) leave this field blank and select the active checkbox within the detailed adjustment if/when you are ready to deactivate.  



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