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Super Explorer ***

Garnishment of employee for child support

I have an employee has is being garnisheed for child support for 2 children. I have setup the payroll accounts to do the deductions from the paycheck, and created a vendor to cut the checks, but I want to know where to expense the amounts on the checks. For the time being I posted the amounts to Payroll expense, but I know that's not right. I considered creating an account called "Child Support" and posting the expense there, but where does the other side come from. My payroll deductions items are called Child Support and Child Support 2 but where do they appear in the chart of accounts? Payroll Liabilities? So do I just offset the Child Support expense and post the other side in Payroll Liabilities?

I apologize if my wording of this question is faulty, and displays my lack of accounting knowledge. I hope someone here will be able to help me.

Randy Clay

Solved
Best answer 01-09-2019

Accepted Solutions
QuickBooks Team

Re: Garnishment of employee for child support

It's the Payroll Liabilities account, RClay.

 

It lets you track the deductions to be paid for Child Support. Though, you can create a Payroll Liability sub-account and name it Child Support.

 

To create a sub account:

  1. Click Lists, and the Chart of Accounts.
  2. Look for the Payroll Liabilities account.
  3. Click the Account drop-down. Then, click New.
  4. Choose Other Account Types, then Other Current Liability.
  5. Name the account as "Child Support", then mark the Subaccount of box.
  6. Choose Payroll Liabilities from the drop-down.
  7. Click Save & Close.

The deducted amount from the employees' paycheck will be sent to the liability account and will be shown on your Chart of Accounts or Balance Sheet report.

 

Let me know if you have further concerns. I'll be here.

11 Comments
QuickBooks Team

Re: Garnishment of employee for child support

It's the Payroll Liabilities account, RClay.

 

It lets you track the deductions to be paid for Child Support. Though, you can create a Payroll Liability sub-account and name it Child Support.

 

To create a sub account:

  1. Click Lists, and the Chart of Accounts.
  2. Look for the Payroll Liabilities account.
  3. Click the Account drop-down. Then, click New.
  4. Choose Other Account Types, then Other Current Liability.
  5. Name the account as "Child Support", then mark the Subaccount of box.
  6. Choose Payroll Liabilities from the drop-down.
  7. Click Save & Close.

The deducted amount from the employees' paycheck will be sent to the liability account and will be shown on your Chart of Accounts or Balance Sheet report.

 

Let me know if you have further concerns. I'll be here.

Frequent Explorer *

Re: Garnishment of employee for child support

I have used "wage garnishment" as the name of my payroll deduction for child support from employee #1. And set up the proper way to pay, etc. Have accomplished the payments and deductions for several months with no problems.

I just received a notice from the same agency that I should deduct child support from employee #2. 

I set that up with proper case # just like the I did for employee #1 named "wage garnishment 2".

Today's paychecks are created properly, but PR Liabilities totaled the 2 garnishments per employees and is going to the employee #1 case ID# only. 

What should I do to overcome this error, besides filling in the proper payment per employee and the case id# manually? 

QuickBooks Team

Re: Garnishment of employee for child support

Hi there, Bigdog54.

 

I'm here to make sure your items for garnishment are posted to the correct employee.

 

Let's make sure the number that identifies you to the agency and the liability account is correct. To confirm this, you can go to the Employee Settings of your second employee and make sure the Wage Garnishment #2 is on the Payroll Info tab. 

 

Here's how:

  1. Go to Employees menu.
  2. Click Employee Center.
  3. Click the Payroll Info tab.

As always, you can get in touch with our Care Support Team in case you require assistance from a live support. Here's how you can get in touch with them:

  1. Go to this link https://payroll.intuit.com/support/contact/?infosrc=qs&service=16.
  2. Choose Basic Standard & Enhanced.
  3. Click Payroll.
  4. Click View Contact Info.

Let me know how it goes or if you have further questions about this or if you need help with something else, I'm always glad to help.

Frequent Explorer *

Re: Garnishment of employee for child support

THANK YOU..I had set everything up correctly, but accepted the quick fill of wage garnishment on both paychecks...hence one total amount due.

After noting your "Wage garnishment #2", I realized I didn't look for that when creating his paycheck.

Thank you for your prompt reply.

QuickBooks Team

Re: Garnishment of employee for child support

Hello there, Bigdog54.

 

I'm glad I was able to help. You might want to visit this website to know more about QuickBooks Desktop for Mac: https://qblittlesquare.com/.

 

Please know that you're always welcome to visit us anytime you need help.

Frequent Explorer *

Re: Garnishment of employee for child support

The garnishment (which I created last week) is showing the wrong wages earned dates. Is there a way to correct this in my pay liabilities window? 

The state ordered garnishment was dated 2/4/19 and says he's liable for $xxx per month. I can use the amount specified for weekly paychecks. My payroll schedule is set at the Friday following a completed week. i.e.: paycheck dated 2/8/19 was for wage week of 1/28 to 2/3 which had child support deducted. However, the pay period for the first liability pmt to the agency is for this week's paycheck. What did I do wrong now???? 

I edited the garnishment names to identify each employee's specific garnishment. On the attached screenshot, you'll see the second garnishment is labeled wrong (showing Employee #1 name)...HELP

Moderator

Re: Garnishment of employee for child support

Good day, @Bigdog54,

 

Thanks for adding to the conversation. I can share some insights about the scheduled liabilities in QuickBooks.

 

You're on the right track with setting up the schedule. However, the period displayed on your scheduled liability taxes is based on the check date of your employees' payroll, and do not reflect their pay period.

 

This is following the IRS regulation for using constructive receipts to determine when a cash-basis taxpayer has received gross income. This doctrine helps them identify your payment schedule based on the amount of income and FICA taxes you reported during a specified look-back period.

 

You might find these articles helpful:

That should do it, @Bigdog54.

 

Please let me know if there's anything you need help. I'm always around to help you with QuickBooks. All the best!

Frequent Explorer *

Re: Garnishment of employee for child support

One more question: I would like to change the due date of these garnishments. I remember setting a day of the week to pay it, but I don't know where to find that. So can I do that and how to do it?

QuickBooks Team

Re: Garnishment of employee for child support

Hi there, Bigdog54.

 

I'll be glad to walk you through setting up your garnishments payment schedule:

  1. Go to the Employees menu, then select Payroll Center.
  2. Select the Pay Liabilities tab.
  3. At the bottom, under Other Activities, select Change Payment Method.
  4. Go to Schedule payments, then select the garnishment item you want to schedule a payment for.
  5. Select Edit.
  6. Select a payment frequency.
  7. Choose Finish.

Here's a reference article for more details: Set up and Pay Scheduled or Custom (Unscheduled) Liabilities.

 

You can always get in touch with us here when you have questions in the future.

Active Member

Re: Garnishment of employee for child support

We do not currently use Quickbooks payroll.  ADP pays the wage garnishments for our employees.  They take the wage garnishment out of the employees check and pay him 1 check, then they pay another check for the wage garnishment to the state.  I'm not exactly sure how to keep track of that since the check isn't going directly to the employee.  Should I write the check out to the employee in Quickbooks (even though ADP does not) and then class it to wage garnishments?  I want to be able to see what the employee was paid throughout the entire year and have it all classed to him, but also need to note the wage garnishments.

Does this make sense?  Please help!!

Thank you!

Moderator

Re: Garnishment of employee for child support

It's nice to have you here, @lmeyers,

 

Thanks for joining the discussion. Allow me to chime in for a moment and share some insights on how to record your employee's payroll details in QuickBooks.

 

Since you're using a third-party payroll processor, you can enter the paycheck information in QuickBooks by writing the checks manually. You can record it the same way ADP creates them.

 

Additionally, if you're unsure of what account to use for the employee's wage garnishment, it is best to contact an accountant for further assistance. They can provide the best legal and accounting advice for your business and can add in-depth information on recording your payroll manually.

 

I've also attached here a related article if you want to set up manual payroll for Quickbooks Desktop: Set up payroll without a subscription.

 

That should help you get on the right track. If you ever need further assistance about payroll processing in QuickBooks Online, please feel free to mention me anytime. Have a great and productive day!