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cornerstoneroofingahi
Level 1

Garnishment has a minimum exemption amount of $675 that the employee has to take home, how do I set it up

The only option is to enter the amount of the garnishment at 25% of disposable wages but if they are not making over the Minimum exemption then there should not be a garnishment from their disposable income.

1 Comment 1
JoelES
QuickBooks Team

Garnishment has a minimum exemption amount of $675 that the employee has to take home, how do I set it up

QuickBooks Online Payroll (QBOP) calculates garnishments based on their specific type, Cornerstoneroofingahi.

 

If an employee's disposable income is too low and the 25% deduction would lower their take-home pay below the legally protected minimum, QuickBooks will automatically adjust the garnished amount to zero or a minimal value to ensure the employee meets the required minimum take-home pay.

 

If QuickBooks is not providing the necessary options to set up the garnishment correctly or if the calculations are not working as expected, it is advisable to consult with a payroll expert or accountant to ensure accurate record-keeping.

 

For guidelines on how to establish and manage garnishments, you can refer to the article: Set up & collect garnishments.

 

Keep me posted if you need additional information about managing garnishments in QuickBooks.

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