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

Adding a federal levy garnishment to an employee record

1. In the Setup > Employees > Payroll Items tab, make the federal levy garnishment deduction item active for the employee by marking its checkbox in the Deductions grid. If a federal levy garnishment deduction item isn't listed, contact your Payroll Specialist.
2. Click the 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.

Limits

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

• The order of federal levies take a second priority after wage withholding for child support, if the child support order is received prior to the levy.
• A levy on wages or salary is continuous from the time of the levy until the liability (taxes, interest, and penalties) is satisfied.
• The amount exempt from levy is determined by adding the standard deduction to the number of personal exemptions and dividing that amount by the number of pay periods in the year for that employee (52 for employees paid weekly, 26 for employees paid bi-weekly, 24 for employees paid semi-monthly, etc.) Because the annual amount allowed for the standard deduction and personal exemptions generally change each year, so does the amount exempt from levy.
• To simplify the calculation, the IRS publishes a table and makes it available in IRS Publication 1494, Table for Figuring Amount Exempt from Levy on Wages, Salary, or Other Income. 

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