QB Online Payroll Child Support

CK18 · ‎July 21, 2020

Hi

I have a new employee who has child support deductions. When I add the deduction I need to enter maximum percent of disposable income. What do I enter here there is nothing in the withholding order that is telling me the maximum percent of disposable income?

Thanks,

CK18

RaymondJayO · ‎July 22, 2020

I'll share the details on how to get the Maximum percent of disposable income rate for your new employee, @CK18.

The maximum percent of disposable income applies to Child/Spousal Support orders only. The withholding order may not state any percentage since there's a typical language for this. You can enter the rate based on this formula: "The total withheld amount, including your fee, cannot exceed xx% of the employee's aggregate disposable weekly earnings." View the screenshot below for your visual reference. For more details, check out this article: Setting Up A Wage Garnishment. Just locate the Add a garnishment - QuickBooks Online Payroll section. Then, go to the "Maximum % of disposable income" row.

Also, the Federal Consumer Credit Protection Act (CCPA) limits garnishments to 25% of disposable income. You can enter the rate as 50% if the new employee is supporting a current spouse or child who is not the subject of the withholding order. Use 60% if the employee is not supporting them. You may garnish an additional 5% for support payments over 12 weeks in arrears.

If you're unsure of the rate, I'd suggest consulting your accountant. They can help you determine the appropriate percentage for your new employee. This way, their garnishment deductions will be set up accurately.

Once done, the system will auto-calculate the garnishment amount each time you create an employee's paycheck. In regards to their remittance, we currently don't support them. Thus, I'd suggest using the Deductions and Contributions report to serve as your reference when remitting them to the garnishing agency. You can also follow the instructions on the child support order for further compliance requirements.

I'll be right here to help if you need anything else. Keep safe always, @CK18.

Best regards,

Raymond Jay

View solution in original post

RaymondJayO · ‎July 22, 2020

I'll share the details on how to get the Maximum percent of disposable income rate for your new employee, @CK18.

The maximum percent of disposable income applies to Child/Spousal Support orders only. The withholding order may not state any percentage since there's a typical language for this. You can enter the rate based on this formula: "The total withheld amount, including your fee, cannot exceed xx% of the employee's aggregate disposable weekly earnings." View the screenshot below for your visual reference. For more details, check out this article: Setting Up A Wage Garnishment. Just locate the Add a garnishment - QuickBooks Online Payroll section. Then, go to the "Maximum % of disposable income" row.

Also, the Federal Consumer Credit Protection Act (CCPA) limits garnishments to 25% of disposable income. You can enter the rate as 50% if the new employee is supporting a current spouse or child who is not the subject of the withholding order. Use 60% if the employee is not supporting them. You may garnish an additional 5% for support payments over 12 weeks in arrears.

If you're unsure of the rate, I'd suggest consulting your accountant. They can help you determine the appropriate percentage for your new employee. This way, their garnishment deductions will be set up accurately.

Once done, the system will auto-calculate the garnishment amount each time you create an employee's paycheck. In regards to their remittance, we currently don't support them. Thus, I'd suggest using the Deductions and Contributions report to serve as your reference when remitting them to the garnishing agency. You can also follow the instructions on the child support order for further compliance requirements.

I'll be right here to help if you need anything else. Keep safe always, @CK18.

Best regards,

Raymond Jay

Bookkeepingsol · ‎January 08, 2022

Inam new using Quickbooks Payroll Online ... I have set up automatic tax filling.

my question is - Does Quickbooks includes Garnishments withholdings for Child Support on this . Or should I do it my self ? And how often ?

Rasa-LilaM · ‎January 08, 2022

Thanks for joining this thread, Bookkeepingsol.

I’m glad to know that you’re using our payroll service in managing your employee’s child support. Let me help make sure you can track the garnishment in QuickBooks Online (QBO).

The online payroll service helps you comply with garnishment orders by calculating the amount that can be withheld to apply to the child support. It’s based on existing taxes and deductions, and the type of garnishment. This reference provides more insights into this process: Compliance with wage garnishment orders.

When setting up the automatic tax filing, the payroll service only handles your taxes and forms. Thus, you’ll have to manually pay the garnishment and record it in QBO. Regarding how often you’ll have to pay the child support, I recommend contacting the agency or following the instructions on the garnishment order.

I’m adding some links below for additional resources. These articles provide general information about the CCPA limits as well as how to add a garnishment.

Keep in touch if you have any clarifications about adding garnishments in QBO. I’ll jump right back in to answer them for you. Have a great weekend.

Camer · ‎February 28, 2022

Why do these liabilities not show up with the other liabilities in payroll like they do in desktop?

ZackE · ‎February 28, 2022

Thanks for becoming part of the Community, Camer.

You can view payroll tax liabilities by running your Payroll Tax Liability report.

Here's how:

In the left navigation bar, go to Reports.
Enter "Payroll Tax Liability" in your Find report by name field.
Choose Payroll Tax Liability from the drop-down list.
Use your Date Range tool to specify a time period.
Select a Work Location to see a list of taxes owed and paid for it.
Click Run Report.

I've also included a couple detailed resources about working with reports which may come in handy moving forward:

Please don't hesitate to send a reply if there's any questions. Enjoy the rest of your day!

JGWilson · ‎December 05, 2022

Manually create a Payroll Liability account for CS Payments. Credited via the payroll line item, debited when you pay the state agency (manually)

Topics

Training

Community

Resources

QB Online Payroll Child Support