Wage Garnishment

Elisha78 · ‎April 05, 2019

I have an employee who has an active garnishment order. She is owed non-payroll funds. How can I withhold the garnishment from funds that aren't paid through payroll, and still reduce the liability I have set up in payroll liabilities?

Anonymous · ‎April 05, 2019

I think that by definition a wage garnishment only applies to wages.

Elisha78 · ‎April 05, 2019

I wish. The order states 'all credits or other personal property in your possession or under your control.'

Anonymous · ‎April 05, 2019

It's nice to see you here again, @Elisha78,

Allow me to step in for a moment and share additional information on how to account the garnishment for non-payroll funds in QuickBooks.

There are a few steps you need to do to record this. Let me show you how:

Step 1: Set up and Addition item for the Non-Payroll Fund.

Go to Lists then choose Payroll Item List.
Right-click anywhere and click New.
Choose Custom Setup then hit Next.
Choose Addition then Next.
Enter the item description then click Next.
In the Expense account field, add the account for the non-payroll fund then tap Next.
Select None for the Tax tracking type then pick Next three times.
Click the Finish button.

Step 2: Create the garnishment item.

Go to Lists then Payroll Item List.
Right-click anywhere then click New.
Pick Custom Setup then hit Next.
Use the Deduction type then go to Next.
Enter the item name then press Next.
Choose the payroll liability account then hit Next.
For pick a Tax tracking type and click Next thrice.
Tap Finish.

Step 3: Add the items in the paycheck.

Go to the Employees menu and select Pay Employees.
Choose Scheduled or Unscheduled Payroll.
Fill out the Pay Period Ends and Check Date fields.
Mark the Employee name you want to pay.
Click Open Paycheck Detail.
In the Other Payroll Items section, add the Addition and the garnishment item.
Click Save & Close then Continue.
Hit Create Paychecks.

I've attached here a related article to guide you with the steps: Set up a payroll garnishment item

That should get you pointed in the right direction. Let me know what else I can do to help you succeed today. I'll be right here to help. Have a good one!

Elisha78 · ‎April 09, 2019

I've already created the payroll item for the garnishment, what I need help with is paying a check for non-payroll monies owed, but I need to withhold a portion of the those funds to resolve the payroll liability.

PreciousB · ‎April 09, 2019

Thanks for letting us know the steps you've tried, Elisha78.

Let me chime in this conversation to help you write a check for the non-payroll amount.

You can create a check that includes two lines. The first line should be for the non-payroll money to be paid for the employee. Then, the second line would be for the garnishment with a negative amount. This will post liability for the garnishment that you can use to pay but not through the Pay Liabilities tab.

Here's how:

Select Banking at the top menu bar.
Choose Write Checks.
Enter the needed details and click Save & close.

For more details about writing a check, please refer to this article: Create, modify, and print checks.

That information should get you back in order. I'd appreciate if you can update me on how it goes, so I can help if there's anything else you need. I'm cheering you to continued prosperity.

bahuni · ‎April 17, 2020

I have to print 2 different Garnishment checks but it shows on total amount on garnishments liability when I hit pay so how I separate them and print 2 different Garnishment checks?

JoesemM · ‎April 17, 2020

Hello, @bahuni.

Let me help share information about printing garnishment in QuickBooks Desktop.

If the garnishment check has the same pay period, we're unable to print them one-by-one. It's because the garnishment check will base on the liability date and will show the total amount when you hit the liability payment.

However, if you're paying your liabilities through Create Custom Payments, you can set your own date range and allows you to pay and print in a single check.

Here's how:

Go to Employees at the top menu bar and choose Payroll Center.
Click the Pay Liabilities tab.
Under Other Activities, select Create Custom Payments.
Select Date Range for Liabilities window, select a date range, then OK.
Click the To be printed box to print the liability check.
Select the bank account and the date you want to appear on the liability check.
Choose either Review your liability check to enter expenses/penalties or Create a liability check without reviewing.
Choose the payroll item you want to pay, then select Create.
Ensure that the date and amounts are correct, then click Print.

For additional information about the process, consider checking out this article and proceed to the How to create an unscheduled or custom liability check section: Set up and pay scheduled or custom (unscheduled) liabilities.

You can check out this article on how to print checks: Create, modify, and print checks. It also provides steps on how to delete or void and memorizing check in QuickBooks.

I'll also add this article future reference: How to use QuickBooks to pay payroll taxes and other liabilities.

You can always reach out to me directly by adding a comment below if you have any other payroll and garnishment concerns and if you're referring to something else. Take care always.

Biratnagar · ‎April 20, 2020

Thank you so much.

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