How Your Payroll Software can make Wage Garnishment Simple

By Stephanie Elsen

As an employer, you are aware of the importance of making accurate employee wage garnishments. Calculating withholdings and making payments can be complex, and processing them incorrectly can result in legal repercussions. Here are some ways payroll software can help ensure deductions are made accurately and on time.

Set up and track garnishment calculations. By setting up garnishment calculations to compute automatically when payroll is processed, you are assured a consistently accurate dollar amount is being withheld, keeping both employee and creditor happy.

Set up and pay garnishment creditors from your payroll system. By setting up creditors within your payroll system, you can easily process and send checks right from the system instead of having to look up the address and print the check from another location. This also provides the ability to run reports to see who has been paid, and how much.

Specify a minimum net pay. Many garnishment court orders require that an amount be deducted from the pay, yet the employee pay should not go below a specified amount. By setting this up within your payroll system, you are confident the proper garnishment is taken out, and that the employee gets their minimum amount.

Set up a garnishment priority. When an employee has more than one garnishment, you will need to know which garnishment takes priority. Setting up a priority system within your software allows you to automatically deduct the garnishment in the correct order, so that the proper amount is deducted for each creditor.

Specify the priority of other deductions. A garnishment may be set up to allow the employee to contribute money to other areas before the garnishment is taken, such as a 401(k) contribution. In this case, setting up a rule within your system to handle this will make certain that the garnishment is taken only after the other deductions are taken.

Employee payroll garnishments can be complicated. Use every tool at your disposal to ensure you are in compliance with a court-ordered garnishment, and look after the needs of your employee at the same time. Payroll software is a tool that can work wonders in keeping both parties satisfied.

Wage Garnishment Setup in CenterPoint Payroll Software

Wage Garnishment Setup in CenterPoint Payroll Software

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