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JGWilson
Level 2

QB Online child support garnishment limits, Discretionary Income/exemption calc, Colorado

garnishments are more complex than QB can handle. Please consider a an enhancement. Use case for a new requirement:

 

As far as I can tell, there is no way to manually define income available for a garnishment. Colorado law recently implemented a statutory exemption (to garnishments) which is the greater of 1) Full time hours x Min wage rate, or 2) 80% of disposable earnings (net after taxes).

Calc depends on pay-cycle; 40 hours, 80 hours, or 86.67 hours.

This is a SERIOUS PITA to have to manually calculate for every single paycheck for an hourly worker!

And there seems to be no part time equivalent calc, so in this case it's always FTE garnishment protection.

In QB, we could really use a way to define "Income available for (or exempted from) garnishment". Either a calculation, or a defined $amount. CO can't be the only state doing this.

Also, CS garnishment orders often have 2 %'s baked in. A greater % is used for for CS overdue by 12 months.

 

TLDR: Colorado min wage, or low wage workers have little room, if any, for garnishment.

 

Ex. someone works 60 weeks on a 2 week paycycle @ $15/hr

Gross is $900, Say net is $800 after taxes.

Amount of exemption is greater amount of either 1) 80hours X 12.00 (St. min wage) = $960, or 2) 80% x $800 = $640.

$960. ZERO Garnishment.

Even at FT at $18/hr, $1,440 gross, $1, 250 net, exemption is $960 or $1,000 -> so $250 available, then only 15% (or 20% if 12 mo past due CS) of THAT amount is garnish-able = $50!  

I should charge $50 for just figuring this out each paycheck.

 

5 Comments 5
JamesAndrewM
QuickBooks Team

QB Online child support garnishment limits, Discretionary Income/exemption calc, Colorado

Thank you for reaching us here in the Community.

 

I can see how the feature to calculate garnishment according to colorado law would be helpful to you. However, this isn't available in QBO at the moment. In the meantime, it would be best to share your suggestions and feedback regarding this option with our product developer. Here's how to send feedback:

 

  1. Click the Gear icon in the upper-right corner.
  2. Select Feedback under Profile.
  3. Share your feedback.
  4.  Click Next to submit.

 

Our product engineers would consider your suggestions and you can always check the status of your request through this link: QuickBooks Online Customer Feedback.

 

You can visit this article to know about how you can wrap up this year’s payroll and prepare for the next with QuickBooks Online Payroll: Year-end checklist for QuickBooks Online Payroll.

 

If you have any further concerns about your transactions, don't hesitate to post them here. Have a great day!

HollyNatureBoss
Level 1

QB Online child support garnishment limits, Discretionary Income/exemption calc, Colorado

I am literally having the same wage garnishment issue only for my employee that has to do with a prior creditor, not child support. To make matters more complicated since the employee is hourly and doesn't work consistent hours, the exemption would vary essentially every week. I did notice based on his current income though that unless he works over 38.5/hrs a week (which he has only done once, and I could just cap him at 38.5hrs to simplify, the 40 x Min hourly wage ($13.65 currently in CO) =$546, and that will always be the greater exemption, especially when hourly wage goes up next year.  I spoke to 3 QuickBooks payroll core reps today and none of them could help me as it just appears the system is not set up for this. I'm going under "other garnishment" I'm thinking of doing a flat amount to withhold, leaving at $0 initially and after I've calculated the check I can see what if any goes past $546 in net payment, & then go back & alter garnishment? Honestly that seems like the best way to do it. Assuming I can edit the garnishment and not cause issues every time. QB services so many, they need to fix this ASAP! 

Rainflurry
Level 14

QB Online child support garnishment limits, Discretionary Income/exemption calc, Colorado

@HollyNatureBoss 

 

Your issue is the very reason we switched both of our businesses from QB payroll to a local payroll processing company.  Annually, they were only $200 more expensive than using QB payroll and they take care of everything.  And, if you have an issue, you just pick up the phone or send them an email and talk to the person who actually processes your payroll.  Best move we ever made.       

HollyNatureBoss
Level 1

QB Online child support garnishment limits, Discretionary Income/exemption calc, Colorado

Yeah I get that, but part of my job is processing payroll for our small business. It just would be nice to have a system that will actually accommodate our needs. QB needs to fix these things so people don't leave! 

ArieM
Level 1

QB Online child support garnishment limits, Discretionary Income/exemption calc, Colorado

Yes, I have had this same problem. Hopefully QB can get this fixed soon.

One route that has worked for me on QBO is to add a "Deduction/Contribution" instead of a "Garnishment" under the employee tab. Then select "Other deductions" > "Wage garnishment" > select "flat amount" > Leave the amount per paycheck as $0. Click Save. 

Then, when you add the hours for your employee each paycheck, you can calculate the wage garnishment each paycheck manually and edit the paycheck to match the amount you would like to deduct. 

This way leaves the actual paycheck editable when you run payroll and is faster than trying to change the entire garnishment under Employee settings every time. 

Hope this helps! 

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