QuickBooks Payroll Garnishment

Setting Up of QuickBooks Payroll Wage Garnishment

Garnishment is an order sent out by the court, state agency, or Federal government to an employer for withholding wages from the salary of the employee and transfer the same to the creditor or agency.

One easy approach is to connect with QuickBooks payroll customer service to get help for QuickBooks payroll garnishment. The order might allow the employer to charge administrative fees from the employee as well

Types of Wage Garnishment in Intuit QB Payroll

It is basically of the following types:

• Bankruptcy
• Levying of Federal and State Tax
• Student Loans under Federal and State Government
• Creditor Garnishment

How do I set up a QuickBooks Payroll garnishment?

The employer can set this wage garnishment within the QuickBooks Payroll software for future wage withholding by 4 simple steps illustrated below:

1. Step One: Setting Up Other Current Liability Type Account – To record the amount of wage withheld.

• Open the software and locate lists tab under which select the Chart of Accounts option.
• Now right-click the tab and then select the option – Add New
• In the Account Type field select Other Current Liability.
• Rename the option as Wage Garnishments Payable
• Tick the box against “Subaccount of” and make the added label as a sub-account of the Payroll Liabilities Account.

2. Step Two: Structure the list of items that will be shown under paychecks.

• From the dashboard of the QuickBooks Payroll software locate the Employees tab in the menu bar and then select the Manage Payroll Items option followed by New Payroll Item.
• In the new window click on the Custom Setup option followed by Deduction on the next screen.
• In the new window of Deduction, specify details for the name of the deduction (Child Support for example), the name of the creditor to whom Garnishment has to be paid and the account number if available.
• Next, select the account – Wage Garnishment Payable that was setup in the previous step.
• On the next screen, “tax tracking type”, choose None
• On the next screen, “taxes”, nothing should be checked
• On the next screen, “calculate based on quantity”, choose Neither
• On the next screen, “gross vs. net”, gross pay is checked…this is fine as this does not apply to this item
• On the next screen, “default rate and limit”, enter the default rate if you only have one employee subject to this item, if you will use with multiple employees then leave blank -you will set the rate in employee screens.
• Now click on Finish and then a prompt dialog box will appear providing a reminder to schedule liability payment for the account.

3. Step Three: Set up a schedule labeled ‘Liability Payment’.

• Go to Employees > Payroll Taxes and Liabilities > Edit Payment Due Dates / Methods
• The payroll setup window will appear. Click continue on the “review your scheduled tax payments lists” screen that comes up first
• Click continue on the next screen “add or edit scheduled payments for benefits and other payments”
• On the next screen, you should see the “Child Support” or other wage garnishments you just set up
• Select it and choose Edit
• Select your payment frequency on the next screen
• Select Finish and then Finish again to close the payroll setup window

4. Step Four: As per the Garnishment order, add the items of payroll under the employee.

• Go to Employee Center from the icon bar or home screen
• Select the employee, right click and choose Edit
• Change the view to “Employee and Compensation Info”
• Select the “Child Support” or another garnishment item in the deduction section
• Enter the amount to deduct in the amount column
• Select and click on the okay button

Help For Garnishment in Intuit Payroll

FAQs

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