Wage Garnishment

I'm here to help record the garnishment payment made outside of QuickBooks, rsteenbu52.

You can set up a garnishment item to track the payment if you're payroll service is active in QuickBooks. Doing this will offset the amount every time you run payroll.

Here's how to set up the item:

1. Go to the Payroll menu, then Employees.
2. Choose the employee's name.
3. Select edit ✎ beside Pay.
4. Choose edit ✎ to add a deduction.
5. On the drop-down, select Garnishment and Garnishment Type.
6. Enter the description, amount requested, and the maximum percent of disposable income.
7. Click OK once done.

Just make sure to check your payroll preferences so payroll liabilities and expenses are set up correctly. Please browse this link for instructions: Set up Payroll account preferences.

If you're using another payroll system, you can write a check to reflect the payment made to the taxing authority.

Here's how:

1. Log into your QuickBooks account.
2. Click the Plus sign.
3. Select Check below Vendors.
4. Enter the necessary information.
5. Under Category details, add the expense account.
6. Enter the amount.
7. Hit Save and close.

Choosing the expense account for your wage garnishment item needs the assistance of your accountant. They can provide specific instructions on what account to use to track the payment.

For future reference, visit the Manually enter payroll paychecks in QuickBooks Online article. It contains additional information about entering payroll paychecks manually via journal entry.

Keep me posted if you need additional information about recording the garnishment payment. I'll be right here to help you.