Garnishment Payee Details for US Employees

A mandatory step for creating a garnishment record is to select the payee for the garnishment payment. Before you can do this, you need to set up the necessary third-party payees, or verify if the payee already exists.

You can review system payees and add custom payees in the Payees tab of Payroll Setup > Third Party Payees. Certain payees, such as for family support, come preconfigured. In the General section of the payee details, system payees have the system payee category Garnishment or Child Support Payment selected from the Payee Category drop-down list. You must also assign one of these categories to custom payees that you create for garnishments. This allows the payee to be assigned to a garnishment.

When a payee has the Garnishment or Child Support Payment category assigned, the payment is handled by Dayforce Payment Solutions. In the Payment Method section of the payee details, the application doesn’t offer any options and shows the following note that the payees must be paid by Dayforce Payment Solutions:

Note in the Payment Method section in Payroll Setup > Third Party Payees in the Payees tab if you select either Garnishment or Child Support Payment as the Payee Category.

Note: See Third Party Payee Configuration.

In the Payroll > Garnishments screen of People, assign a payee in the Payee Details section of the Properties tab for the garnishment record by selecting an option from the Payee drop-down list.

The Payee drop-down list displays US system and custom payees that have the Garnishment and Child Support Payment payee category.

When you select a payee, the application automatically populates its address information in the read only fields of the Payee Details section.

You can also define the following additional fields in the Payee Details section:

Fields in the Payee Details section
Field	Description
Alternate Payee	Fill out in the cases where the payee name that is needed on the output (check or electronic payment) is different from the name of the option that you select in the Payee drop-down list.
Custodial Parent Name	Depending on the type of garnishment, you need to enter the given name of the person receiving the garnishment in the Custodial Parent Name field.
Custodial Parent SSN	Enter the Social Security number of the custodial parent in the Custodial Parent SSN field.
Informational Notes	Similar to the memo fields but it isn’t included on the Garnishment History Report.
Memo 1	The application includes this information in the Garnishment History Report.
Memo 2