Weekly Wage Withholding

SUGGESTED

I have an employee where I now have to withhold 20% of their weekly gross payroll checks for the state.  We have a Garnishment deduction set up, but I'm not sure how to use it, as I won't know the amount to withhold until I run their payroll check.  Does anyone have a process for this? 

Thank you!

Annie

  • 0

    The garnishments I've seen are based on "Disposable Wages" which is Gross Wages less Employee Taxes required by law.  

    This formula is set up for Disposable Wages:  Trunc ((Gross Pay (PR Check) - Employee Taxes (PR Check)) * 0.20, 2)

    If you believe it should be based on Gross regardless of taxes required by law:  Trunc (Gross Pay (PR Checks * 0.20,2)

    Whatever name you'd give this formula, is the formula name you'd put on the Deduction setup for that employee, under "Formula". 

    After you process PR, check the amount it withheld.  If it's not right, go into "enter checks" and edit the amount.

  • 0 in reply to Rhonda V

    I received a notice from the WI DOR stating I have to take 20% of the gross pay.  And if there are other garnishments, I have to subtract the garnishments first and then take 20% of that new gross pay.  This employee is also getting $200 taken out for child support.  So is there a way to make the formula account for that $200?  

  • 0 in reply to Amorton

    If the Deduction ID for child support is CHSUP, I think it will work as follows:  Trunc ((Gross Pay (PR Check) - CHSUP (PR Check) *.0.20,2)  

    You should probably also "Sequence" in the Employee's Deduction Setup.  Seq for CHSUP should be 1.  Seq for the Garnishment should be 2.  

    If it doesn't work and you edit the deductions through "Enter Checks", then reprocess PR.  

  • 0 in reply to Rhonda V

    Problem is the Child Support is just a flat amount. It's not a % or a formula.  Would I still be able to use your formula?

  • 0 in reply to Amorton
    SUGGESTED

    Hi Amorton,

    If the child support amount doesn't change from check to check, then the new garnishment formula would be  .2*(Gross pay [PR Check] - 200.00).

    If the child support changes you can modify the formula to be a lookup formula:

    .2*(Gross Pay [PR Check] - LOOKUP(Amount [PR Check Deduct], Employee [PR Check], Period End Date [PR Check], Check Sequence [PR Check], "CSUP"))

    Where you would substitut "CSUP" with your child support deduction. You would also need to use the Seq. column in the employee setup to make sure the child support calculted before the new garnishment for this option to work.

  • 0 in reply to Jesse Gordon

    The child support amount does not change.  So in the Garnishment deduction, Calc Method would be Formula, Amount box would be blank, and the Formula would read .2*(Gross pay [PR Check] - 200.00)  Is that correct? 

    And you are saying to make sure in the employee's Deduction table, that the Child Support one is listed before the Garnishment?          

  • 0 in reply to Jesse Gordon

    Also, that formula won't fit in the formula box in Deductions setup.  I'm not finding where I would need to setup the actual formula?  Can you help meeeee?  

  • 0 in reply to Amorton

    To setup a formula: From the Payroll module click on Tools > Formulas. That should give you a list of existing formulas as well as give you the option to create a new one. I have several for garnishments that are a percentage of the employee's disposable income (gross minus employee taxes) as well as ones that are a percentage of disposable income less other garnishments. 

    You may need someone to walk you through creating a formula - you have to choose your fields from the menu and then add the syntax for the math.

    This is what my formula looks like for a garnishment that is 25% of disposable income less the amount of the other garnishment they have. (this may not be the most efficient way, but we have few enough employees, that setting up a 1-off isn't a big deal).

    The above formula is ((Gross pay - employee taxes) x 25%) -22.15. Let's say gross is $1000 and taxes are $100, here's how the formula would calculate that

    $1000 - 100 = $900.

    900 x 25% = $225.

    $225 - 22.15 = 202.85 (amount to withhold).

    I hope that helps. There's a bit of a learning curve with setting up formulas, but once you have created a couple, it gets easier.
    Good luck!



  • 0 in reply to mec5700

    Thank you. So my garnishment (20%) is based off gross pay but I'm not subtracting taxes and I have to subtract $192.50 in another garnishment before this new withholding.  So would mine read

    [(Gross Pay (PR Check) - 192.50 *0.20] ?

  • 0 in reply to Amorton

    Based on what you've said, you just need one extra parenthesis:

    [(Gross Pay (PR Check) - 192.50) *0.20]

  • 0 in reply to mec5700

    Yasssssssssss! That worked. Thank you so much!!!! Slight smile