Child Support Garnishment

Instructions on how to add a "child support" garnishment order for an employee

Garnishment Type:

Access the Garnishments screen by going to Employee Management > Employee Maintenance > Garnishments. Select the employee. Make the following selections:

• Garnishment Type: Select one of the eight system garnishment types in the drop-down menu. For a Child support order, select “Child Support.” 
  • Administrative
  • Wage Garnishment
  • Bankruptcy
  • Child Support
  • Garnishment
  • Federal Tax Levy
  • State Tax Levy
  • Student Loan
  • Voluntary Wage Assignment 
• Start Date: This field is optional. When used, the garnishment will start if the date entered here is less than or equal to the Period End Date of the payroll. If left blank, the garnishment will start with the next scheduled payroll. 
• Sequence Number: Garnishments are processed by the sequence number entered. A garnishment by law will determine the sequence. Please check with the agency if you are unsure of its priority. Child support always will have highest priority unless a Federal Tax levy is received prior to the child support, therefore it should have the lowest number in sequence.  
• Description: Prints on reports and paychecks. 
• State: Determines the state rules. Also, will limit the number of Payees under ACH Payee to only that state selected. This option will populate available State ACH options when the ACH Payee is selected under Payee.  

Payee

The Payee section should only be completed if you want the Service bureau to make the payment or produce a check for sending to the Child Support agency. If you plan to pay the Child Support with a check from your account manually, please do not fill out this section.  

However, if you want the service bureau to pay, follow the instructions below: 

• Client Payee: This drop-down includes all third parties set up under Client Management > Payroll > Third Parties when the third-party type is “Garnishment Payee.” See the document “Third Party Payment” for details. 
• ACH Payee: This drop-down will include all Child Support payee’s set up at the System-level. 
• Case Number: This field is used to enter a case number to attach to the ACH payment or print on a report sent with the file. 
• FIPS Code: This code may be provided on the court order. This number is usually attached to the ACH Payee if necessary, for that state. 
• Medical Support Required: The child support order may indicate that the employee must cover the child for medical insurance. If checked, reports can be processed to determine which orders include this requirement. 

Garnishment Calculation 

The system defaults to the necessary fields required in a Child Support order. Read the order and complete the fields below: 

• Amount: Enter the dollar amount provided in the child support court order based on the frequency the employee gets paid. 
• Total Amount: Enter the dollar amount provided in the court order. This should be the total amount including any arrears amount, if an arrears amount is listed on the order.  
• Past Due Amount: Enter the past due or arrears amount, if listed on the garnishment order. When this field is used, the Update Arrears Balance field is disabled. 
• Current Amount: This field populates the dollar amount based on the total amount minus any past due amount.  

Here is an example: 

• Percentage of: This drop-down auto populates “Disposable Income.” Disposal income is calculated as gross wages minus taxes. 
• Not to Exceed %: Used to limit the amount withheld when the child support is entered as a percentage or an amount. This is governed by state law and will be indicated on the order.  
• Dependent Exemption: For any garnishments indicating an exemption for dependents, enter the exemption amount. The total amount calculated by the garnishment will be reduced by the exemption amount entered. 

Here is an example: 

• Child Support $500 - $50 Dependent Exemption = $450 Child Support withheld.

Per Pay Fee 

The fee is optional, but if the client wants to deduct a fee from the employee’s check, the amount of the fee per state law will be listed on the child support order. If the client wants to take the fee, enter the amount under Fee Amount.  

• Fee Amount: Many states allow clients to withhold an administrative fee for processing child support garnishments. Use this field to enter the applicable fee amount. The total of child support deductions plus fees will be capped at the not to exceed %.