Set up and collect garnishments

You can add 2 garnishment items for your employee. If your employee has 3 or more garnishment items, you can set up the additional garnishment as "Other deduction".

1. Go to All apps , then Payroll, then Employees (Take me there).
2. Select your employee.
3. From Deductions & contributions, select Start or Edit.
4. Select + Add Garnishment.
5. In the dropdown menu ▼select the Garnishment Type.
6. From the Vendor/Agency dropdown ▼ choose or add the vendor or agency for the garnishment.
7. Enter a description. This will show on your reports and pay stubs. It's a good idea to enter both the employee and agency names so that you’ll recognize which agency is owed the garnishment. 
8. Enter the following fields based on the garnishment type you chose.
   • Child/Spousal Support
     1. Amount Requested - The amount that will be deducted per paycheck. If allowed by the order, include any administrative fees you add. Note that this amount may decrease once disposable earnings are calculated. 
     2. Maximum % of disposable income - Look for this wording:  "The total withheld amount, including your fee, cannot exceed __ % of the employee's/obligor's aggregate disposable weekly earnings…”.
   • Federal Tax Levy
     1. Amount Exempt  - The amount that appears in the table included in the order.
   • Other Garnishment
     1. Total Amount Owed - The total amount owed from the order. The garnishment will automatically stop when the employee's total amount garnished reaches this amount.
     2. Amount per period - Select whether the amount to be garnished is a percentage of gross pay or a fixed dollar amount. Enter the amount as shown on the order.
     3. Alternate Garnishment Cap -. Look for a withholding limit or cap on the order. This cap must include any administrative fees you add. The total amount withheld for the garnishment can't exceed this cap.
9. Select Save.
10. If your employee has multiple garnishments, select the dropdown menu ▼ next to Garnishment weighting to select the order in which the garnishments are collected.
11. Select Done.

You'll need to make the payments directly to the agencies or creditors as instructed in the garnishment order or tax levy. To track garnishment liabilities, refer to Track and record garnishment payments.

Create a payroll item, or multiple if the employee has separate garnishments, to track the garnishment in QuickBooks Desktop.  Then add the new item to the employee profile so it will automatically appear on each paycheck. 

Step 1: Create the garnishment payroll item

1. Select Lists, then Payroll Item List.
2. Select the Payroll Item ▼ dropdown, then New.
3. Select Custom Setup, then Next.
4. Select Deduction, then Next.
5. Enter a name for the payroll deduction such as Child Support Smith for employee Bob Smith, and select Next.
6. Enter the name of the agency to which the liability is paid. If you currently don't know the name of the agency, you can add it later. Select Next.
7. In Tax Tracking Type ▼dropdown leave None selected. Select Next.
8. In Taxes select Next.
9. In Calculate Based on Quantity, make sure Neither is chosen, and select Next. 
10. In Gross vs. Net choose Net to calculate amount after taxes. Select Next.
11. Enter a Default Rate and Limit if there is one. Don't forget to add a percentage sign for a percentage and decimal for a dollar amount. Select Finish.

Step 2: Add the garnishment to the employee

1. Select Employees, then Employee Center.
2. Double-click the employee’s name.
3. Select Payroll Info.
4. In the section for Additions, Deductions, and Company Contributions, under Item Name, add your new garnishments item.
5. In the Amount column, enter the amount per paycheck to take out.
6. Select OK.

You'll need to make the payments directly to the agencies or creditors as instructed in the garnishment order or tax levy.