Setting up federal levy garnishments

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Our Support department is closed on Friday, April 28th for a company event. However, limited Accounting CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline for quarterly payroll tax forms.

Links to our most popular payroll tax processing topics are available in the Alerts and notices section on the right side of most pages.

To set up an employee with a federal levy garnishment and have the application make the appropriate calculations during payroll check entry, follow these steps.

See also: Garnishment overview

Setting up federal levy payroll items

The first step is to create a payroll item for the client to use for employees with federal levy garnishments.

  1. Add a new deduction item for the client.

    Note: If the agent that will collect the payments doesn't appear in the Agent drop-down list, you will need to set one up in the Main tab of the Setup > Vendors screen. You must specify the vendor as a Payroll Agent vendor type for it to become available as the agent for deduction items.

  2. In the Special Type section of the Main tab of the Payroll Items screen, choose the Garnishment option and select Federal levy from the drop-down list.

    Special type Federal levy
  3. Click Enter to save your changes.

Adding the new deduction item to the employee record

  1. In the Setup > Employees > Payroll Items tab, make the new garnishment deduction item active for the employee by marking its checkbox in the Deductions grid.
  2. Click the Ellipsis button button for the new deduction item.
  3. Enter or select the appropriate information in the Federal Levy Information section of the Main tab of the Employee Payroll Item Settings dialog.
  4. Save the employee payroll item information.

Note: You can include deduction items in the calculation of disposable income for an employee if the deduction item was in effect for the employee before the federal levy was received. To do so, mark the Subtract from federal levy basis checkbox in the Federal levy section of the Employee Payroll Item Settings dialog.

Limits

Limits are not restricted by the Consumer Credit Protection Act (CCPA)

Related topics

Garnishment overview

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