The simplest form of garnishment is a flat-rate garnishment that will be deducted from the payroll of the garnishee each pay period. To apply a flat-rate garnishment is straightforward:
a deduction code for the garnishment must be created if one does not already exist.
the deduction code must be inserted into the employee’s profile and initialized with the correct flat-rate.
The Basic Garnishment Deduction Code
The basic deduction code for a flat-rate garnishment usually has the following requirements:
The deduction code should run each pay period,
The deduction code should be the last deduction code to run during payroll processing. This is required so that statutory deductions are taken from the payroll before the garnishment amount is taken.
Let’s go over the steps to create the
Insert a new Deduction Code from
Canadian Payroll > Employer Payroll Tables > Deduction/Benefit Codes.
Setup the deduction code with a
From the deduction data tab we need to setup the
Gen. Frequency, and the
Calc. stepfields of the garnishment:
Short Nameis printed on the Pay Statement of the employee exactly as entered.
Gen. frequencycontrols on which pay periods the deduction will be applied.
Calc. stepcontrols during which step in the payroll calculation the deduction will be applied. We set this to
9so that the garnishment is applied last (after the statutory deductions have been taken.)
Gen. Frequencyfor the deduction code controls on which pay period the deduction will be applied. We want the garnishment to come off each pay period so we can leave it set to the default value of
Every Pay Period.
Save and close the deduction code now by pressing
How to use the basic garnishment deduction
Now that we’ve created a basic garnishment code we want to apply it to an employee to garnish their pay.
Let’s go over the steps to add the basic garnishment code to an employee.
Open the employee profile of the employee (
Canadian Payroll > Employee Profile > Employee Profile).
Insert the basic garnishment code from the Deduction/Benefit Codes tab.
(This tab is located at
Deduction/Benefits > Deduction/Benefit Codesof the employee profile.)
Deduct Onlyand setup the
Remainingfields for the code.
1 Select the basic garnishment code that we just setup for the
Amountfield determines how much will be deducted from the employee payroll.
Remainingfield can be used to specify how much in total can be deducted from the employee over multiple pay periods.
(By default this will be set to
9,999,999.99which will process the deduction indefinitely.)Example 1. Using the
Amountis $200.00 and the
Remainingis set to
$650the deduction will only occur four times:
Each pay period the remaining amount is decreased by the deduction amount until it reaches zero.
The last deduction will take the lesser of the
Remainingfor the deduction amount which will be $50 in this case.
Pay Period # Deduction Amount
Remaining(after payroll processing)
Save and close the employee profile now.
If everything was setup successfully the employee will have the garnishment deducted from their payroll during each payroll.
|It would be a good idea now to run a quick test pay run to ensure that the code is working as you expect.|