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Egross1
Level 1

Setting Garnishment Priority

Hello,

I have an employee with multiple garnishments and need to figure out how to set up the priority in Quickbooks desktop.  For example:

Garnishment #1 is a child support order for $75.00 per paycheck

Garnishment #2 is a court order for 15% of disposable earnings 

 

Both garnishments combined can not deduct more then 25% of total disposable earnings.  I have both garnishments entered already just need to figure out a way where garnishment #2 can vary depending on the disposable earning each week after garnishment #1 is taken.

3 Comments 3
Candice C
QuickBooks Team

Setting Garnishment Priority

Welcome, @Egross1.

 

I'm glad you took the time to post your question here in the Community. I'd be happy to provide you with some additional info.

 

In a Payroll Item, you're able to have a percentage or amount when entering a Default Rate and Limit. Here's how to set up the Payroll Item correctly:

  1. Go to Lists, then select Payroll Item List.
  2. Press the Payroll Item button, then hit New.
  3. Pick EZ Setup or Custom Setup, and click Next. (Note: For EZ Setup, follow the instructions on the screen.)
  4. Choose the Deduction option, and tap Next.
  5. Type in a name for the payroll deduction and select Next.
  6. Enter the information required and press Next.
  7. Hit the Tax Tracking Type drop-down arrow, click None after speaking with your accountant, and then tap Next.
  8. In the Calculate Based on Quantity window, don't select either one, and press Next. Note: If you select either one, then those won't calculate the garnish correctly.
  9. Enter a Default Rate and Limit. Make sure you add a percentage sign or decimal depending on if its a percentage or dollar amount.
  10. Choose Finish.

It's that simple! For more information about payroll garnishment items, check out this guide.

 

Please don't hesitate to reach back out if you need assistance with anything else. Have a wonderful day!

Egross1
Level 1

Setting Garnishment Priority

I'm not having an issue setting up the garnishment.  It is already entered at 15%.  My problem is the two garnishments combined can't exceed 25%.  Is there a way to set a limit on both garnishments?  I know how to set the limit on them individually.

JonpriL
Moderator

Setting Garnishment Priority

Hello @Egross1,

 

Setting up a garnishment limit on both of your items is unavailable. You can manually enter your employee's deduction in the Rate column instead.

  1. Go to Employees.
  2. Select Payroll Center.
  3. Click Start Unscheduled Payroll.
  4. Select an employee.
  5. Click Open Paycheck Detail.
  6. Under Other Payroll Items, select both of your employee garnishment.
  7. On the Rate column, enter 75$ and the 15% amount of your employee's net wages.
  8. Select Save & Close.
  9. Click Create Paycheck.

Here's an article you can read to learn more about creating paychecks: How do I create a paycheck for an employee?

 

I've got you this helpful article in case you wanted to change an employee's paycheck date: Change or edit paycheck date.

 

I'll be here if you need anything else. Thanks!

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