For US employees, employers can retain garnishment payments to creditors. This is used, for example, when an employer is required to apply a third-party creditor garnishment to an employee's pay but to also wait for confirmation of the total amount by writ of execution before releasing the garnishment funds to the creditor.
When a garnishment has the Creditor Garnishment – 507 type selected, the application displays the Hold Garnishment checkbox in the Properties sub-tab of the selected garnishment. Moreover, for the application to display this checkbox, your role must be assigned the Application Container > People > Employee Profile > Payroll > Garnishments > Allow Garnishment Hold role feature in the Features tab of System Admin > Roles.
When you select the Hold Garnishment checkbox, the application processes scheduled and unscheduled deductions for the garnishment through the Payroll module, as it would normally, but doesn’t remit this data to DTS, and the result is that the amount is retained from the creditor.
Also, when you select the Hold Garnishment checkbox, the application enables the Held Garnishments tab, where you can view and track held amounts. When you open the Held Garnishments tab, the application shows a list of the holds for the garnishment, along with the records showing newest to oldest. When payroll is committed, the amount deducted to the garnishment is added to the list, where the Status column indicates that it has the Held status.
This screen is meant for tracking purposes only. You need to release or void held amounts outside of Dayforce, which can be done by using the Source Tax Online Express Check feature of the DTS portal.
A note is displayed at the bottom of the list to indicate that the list is informational only and to provide a link to the DTS portal, which opens in a separate browser window. This screen also provides functionality for you to manually track the status of held amounts. Any updates that you make here don’t impact the actual payment amount. This screen is meant for tracking only.
You can select the Released or Voided status in the Status column. You can also select a date option in the Disbursement Date column. After you update the entry, click Save at the top of the Garnishments screen.
When Active is selected at the top right of the Held Garnishments list, the application only shows records with the Held status. When All is selected, the application displays records of any status.
When there are records in the Held Garnishments tab, this tab will continue to be enabled, regardless of how the Hold Garnishment checkbox of the garnishment details is set. So if a user clears this checkbox and there are already held records, access to this tab is retained.
PPN
This is the Pay Period Number (PPN) that the garnishment was withheld.
Pay Period
This is the Pay Period dates (beginning and ending dates) that the garnishment was withheld and that the PPN corresponds to.
Check Date
This is the Check Date of the check that the garnishment was withheld and that the PPN corresponds to.
Amount
This is the amount of the garnishment that was withheld for that PPN.
Disbursement Date
This is the date that the disbursement was paid or scheduled to be paid.