You can create a quick entry or check entry to replace the garnishment amount that the application is automatically set to deduct from a payment. For example, if a garnishment is set to deduct 25% of an employee's pay, you can create a replacement quick entry to set it to deduct 20% for that payment instead. All of the other payments that follow will continue to use the original settings of the garnishment and deduct 25%.
You can also override the setting that determines whether the garnishment is a percentage or a set amount. For example, say you need to replace a garnishment deduction of 25%. In this case, you can enter a quick entry for a straight dollar amount that you want the application to deduct for the garnishment instead. So, if 25% of the employee's pay is $250, but you need the payment to be $200, you can create a replacement quick entry for a straight dollar amount of $200.
When you save a replacement garnishment entry, the application enforces the minimum subsistence rules or limits that are defined for the garnishment. This means that, while the application saves the entry as normal, the amount actually deducted (as displayed in the earning statement) might be less than the amount you defined for the entry.
For example, in the Garnishments screen, an employee has a federal garnishment issued in Ontario. It is configured for the application to attempt to deduct a straight dollar amount of $250 from each payment the employee receives. It is also configured as subject to Ontario's minimum subsistence rule, which protects 80% of the employee's net pay from being garnished.
In the current pay run, an employee has a net pay of $1801.41. Based on the Ontario minimum subsistence rule, a maximum of $360.18 can be deducted from this garnishment. The $250 scheduled deduction falls below this limit, and so the full $250 is deducted. However, if you add a quick entry for $400 the application enforces the minimum subsistence rule and only deducts $360.18.
The following sections describe the components of a replacement garnishment entry and steps for creating the entry:
The Replace Column
When you add a quick entry or check entry and select a garnishment from the Code column, the Replace checkbox is automatically selected. To create a replacement garnishment entry, you need to leave this checkbox selected.
If you clear the Replace checkbox, the application will not replace the garnishment deduction. Instead, it will adjust the existing garnishment deduction based on an amount that you enter. However, in this case, the adjusted amount isn’t subject to minimum subsistence rules or limits that are in place for the garnishment. See Add to or Subtract from Garnishments for Canadian Employees.
The Amount Column
When you create a garnishment entry with the Replace checkbox selected, the application allows you to enter a value in the Amount column of the entry, by default. The application replaces the garnishment payment with the amount you enter, subject to minimum subsistence rules and limits set for the garnishment.
The Ordered Amount Type Column
As an alternative to entering a straight dollar amount to replace the garnishment deduction, you can also use a different calculation method. Quick entries and check entries include the Ordered Amount Type column from which you can select a calculation method. The methods are the same as those in the Ordered Amount Type setting of the garnishment record in the Payroll > Garnishments screen of People.
The option that you select in the Ordered Amount Type column defines whether the Amount or Percent column of the entry is enabled.
The options are:
- % of Gross Less Statutory Ded Split Over Multiple Garnishments (Quebec Only)
- % of Gross Less Statutory Deductions
- % of Gross Less Statutory Deductions and Union Dues
- % of Gross of up to Provincial Max
- % of Seizable Income (Quebec Only)
- 100% of Net Pay
- Difference Between Disposable Net and Exemption Entered
While the Straight Dollar Amount option is one of the options in the Ordered Amount Type setting of the garnishment record, it isn’t included in the Ordered Amount Type column of the quick entry or check entry. This is because the Straight Dollar Amount option functions the same as entering an amount for the quick entry or check entry and leaving the Ordered Amount Type column cleared. See Ordered Amount Types for Canadian Employees.
For example, in the Garnishment screen, the Ordered Amount Type setting for a garnishment is set to % of Gross Less Statutory Deductions and the Ordered Percent is set to 25%.
If you want the application to deduct 30% for the current pay run, but to use the same ordered amount type, you can create a quick entry or check entry with the following details entered:
- Replace: Yes
- Ordered Amount Type: % of Gross Less Statutory Deductions
- Percent: 30
Replace a Garnishment Deduction for a Canadian Employee
To create a quick entry or check entry to increase or decrease an existing garnishment deduction:
- Go to Payroll and do one of the following:
- Open the Data Entry tab and click the Checks tab.
- Open the Pay Run Management tab and load a pay run, and click the Checks tab.
- Do one of the following:
- If you are in the Checks tab:
- Select the check that you want to add the garnishment entry for.
- Click the Entries link to open the dialog box.
- If you are in the Quick Entry tab, click Add and select an employee.
- If you are in the Checks tab:
- Select the garnishment from the Code drop-down list.
- Do one of the following:
- Enter a value in the Amount field to replace the original garnishment deduction with a straight dollar amount.
- Select an option from the Ordered Amount Type drop-down list and, if applicable, enter a value in the Percent field, to replace the original garnishment calculation method.
- Click Save.
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