Enter the total amount due for the garnishment. If you have already paid off some of the garnishment amount in another system, through a different Costpoint deduction, or through a garnishment deduction that was assigned to the employee on the Manage Employee Deductions screen, the Total Amount Due must be the amount from the order less the total amount already paid for the garnishment. This ensures that the total paid against the garnishment does not exceed the amount specified on the order.

When you enter a new record, the amount entered in this field defaults in the Payroll Year Beginning Bal field.

This field displays the payroll year beginning balance. This is the employee’s remaining balance for the garnishment as of the first day of the payroll year. This amount, along with the Year-to-Date (YTD) garnishment amount paid, is used to determine the employee’s remaining balance each time the garnishment is computed. If you are entering a new record, the Payroll Year Beginning Bal field populates with the same amount as the Total Amount Due field.

Enter the number of dependents an employee has for this garnishment. Some states require that the garnishment amount be reduced by a dependent exemption amount or a multiple of a dependent exemption amount. The value you enter here is multiplied by the Weekly Credit Amount Per Dependent in the Credit Amounts group box to determine the dependent credit amount for the employee’s garnishment.

If the state does not mandate a credit amount, set the Number of Dependent Credits to 0 and the Weekly Credit Amount Per Dependent to 0.00.

Select this checkbox if the state specifies a different creditor debt garnishment calculation or limitation rules for employees that are the head of their family. If you select this checkbox, set up the Garnishment Limit rules using the rules the state specifies for head of family employees. This optional checkbox is for information only and is available only if the Deduction Type is Creditor Debt Garnishment or State Tax Levy.

Select this information-only checkbox if the Deduction Type is Creditor Debt Garnishment, the Work State is Alaska, and the employee is a resident of Alaska.

If the employee is a resident of Alaska, set up the Garnishment Limit rules based on Alaska’s rules for resident employees. If the employee is not an Alaska resident, set up the Garnishment Limit rules based on Alaska’s rules for non-resident employees.

From the drop-down list, select a method used to calculate the garnishment. Valid options are:

• Remaining Balance up to Limit: When payroll is computed, the garnishment amount is based on the amount the employee still owes for the garnishment, limited by the calculated limit amount.
• Percent of Gross: If you select this option, you must enter a value in the Percentage field. When payroll is computed, this percentage is multiplied by the employee’s gross wages to determine the garnishment amount.
• Fixed Amount: If you select this option, you must enter a value in the Fixed Amount field and select the appropriate Pay Frequency from Order. When payroll is computed, the following calculation is used to determine the employee’s garnishment amount:  

  (Fixed Amount x Pay Frequency from Order) / Employee's Pay Frequency

• Percent of Disposable Income: If you select this option, you must enter a value in the Percentage field. When payroll is computed, this percentage is multiplied by the employee’s disposable income to determine the garnishment amount. You must set up disposable income calculation rules on the Disposable Income Exclusions subtask if this method is selected.
• Percent of Net Pay: If you select this option, you must enter a value in the Percentage field. When payroll is computed, this percentage is multiplied by the employee’s net pay to determine the garnishment amount.

Enter the percentage that is used to calculate the garnishment withholding. This percentage is from the order. For example, if the garnishment order specifies that the employer must withhold 20% of disposable income, enter 20% in this field.  

This field is enabled and required if the Calculation Method is Percent of Gross, Percent of Net Pay, or Percent of Disposable Income and the Garnishment Status is Active, On Hold, or Pending Completion of Prior Garnishment.

Enter the fixed withholding amount specified on the garnishment order. When payroll is computed, the following calculation is used to determine the employee's garnishment amount:

(Fixed Amount x Pay Frequency from Order) / Employee's Pay Frequency

This field is required if the Calculation Method is Fixed Amount. If the garnishment is based on a fixed amount, you must also select a Pay Frequency from Order.

If you selected a Calculation Method of Fixed Amount, use the drop-down list to select the payment frequency specified on the order. The following calculation is used to determine the employee’s garnishment amount:

(Fixed Amount x Pay Frequency from Order) / Employee’s Pay Frequency

Valid options are:

• Not Applicable
• Weekly
• Bi-Weekly
• Semi-Monthly
• Monthly

Although Deltek does not recommend this, you may find that you need to override the calculated garnishment withholding amount during one or several pay periods. If this occurs, select this checkbox to override the calculated amount. Selecting this checkbox enables the Pay Period Override Amount field.

If you select this checkbox, the Garnishment Limit is not applied to the override amount, so it is imperative that you understand the state rules and regulations concerning support order withholdings.

The Pay Period Override Amount acts as a pay period limit. This is important when you have more than one paycheck in a pay period (for example, a bonus paycheck and a regular paycheck). When you enter a Pay Period Override Amount, the total amount withheld for the support order within a pay period cannot exceed the Pay Period Override Amount. Assume that the Pay Period Override Amount is $300.00 and the entire $300.00 is withheld when the employee is paid his bonus for the pay period. If you then run a regular payroll, no amount is withheld for the support order because the full $300.00 override amount was already fulfilled via the bonus payroll.

When it is no longer needed, you must discontinue the override amount by clearing the Override Calculated Pay Period Amount checkbox.

If you selected the Override Calculated Pay Period Amount checkbox, enter an override amount in this field. The amount entered is not subject to any garnishment limits.

From the drop-down list, select how the garnishment limit is calculated. Valid options are:

• Not Applicable: Select this option to place no limit on the garnishment withholding amount. You must select this method if the deduction is a bankruptcy deduction because there is no limit on bankruptcy garnishments.
• Use Creditor Debt Rules: If you select this option, you must specify the Limit 1 and Limit 2 calculation rules. When payroll is computed, the Limit 1 calculation result and the Limit 2 calculation result are compared to the calculated federal Consumer Credit Protection Act (CCPA) limits and the lowest amount is used as the employee’s garnishment amount. The federal CCPA calculation rules are hard-coded into the Compute Payroll application:
  • 25% of the employee’s disposable earnings, or
  • The amount by which the employee’s disposable earnings exceed the product of (30 x Federal Minimum Wage)

  If you select this method, you must set up disposable income calculation rules on the Disposable Income Exclusions subtask.

  This option is the default and must be used if the Deduction Type is Creditor Debt Garnishment. You can select this option if the Deduction Type is State Tax Levy. Do not select this option to calculate garnishments with a Deduction Type of Federal Tax Levy, Student Loan Garnishment, or Federal Admin Wage Garnishment.

• Use Federal Tax Levy Rules: If you select this option, you must specify the calculation parameters in the Federal Tax Levy group box. The federal tax levy calculation is hard-coded in the Compute Payroll application. This option is the default and must be used if the Deduction Type is Federal Tax Levy. You can select this option if the Deduction Type is State Tax Levy. Do not select this option to calculate garnishments with a Deduction Type of Creditor Debt Garnishment, Student Loan Garnishment, or Federal Admin Wage Garnishment.
• Lesser of Limit 1 & Limit 2: If you select this option, you must specify the two possible limit calculation methods in the Limit 1 and Limit 2 group boxes. The Compute Payroll application calculates both amounts, and the lesser of the two amounts is used as the garnishment amount. You must select this method if the Deduction Type is Student Loan Garnishment or Federal Admin Wage Garnishment. Although the student loan garnishment order may only specify a percentage of disposable income for garnishing wages, the U.S. Department of Education specifies that the employer must take the lesser of the following:
  • A percentage of the student loan garnishment multiplied by his disposable income
  • The amount by which disposable earnings exceeds the product of (30 x Federal minimum wage)

  For this reason, clients must use the LESSER Limit Calculation Method for all garnishments where the Deduction Type is Student Loan Garnishment or Federal Admin Wage Garnishment.

  This Limit Calculation Method may also be necessary for some state’s tax levy calculations. For example, Vermont specifies that the state tax levy amount must be the lesser of:

  • 20% x Disposable Income
  • Disposable Income: (30 x Federal Minimum Wage)

Use this drop-down list to specify the status selected by the employee on the 668-W form that was completed upon receiving the levy notice. Valid options are:

• Not Applicable
• Single
• Married Separate Return
• Head of Household
• Married Joint Return
• Qualifying Widow

This field is enabled and required if the Garnishment Status is Active, On Hold, or Pending Completion of Other Garnishment, and the Limit Calculation Method is Use Federal Tax Levy Rules.

Enter, or click to select, the date on which the employee signed the 668-W form. This is important because the IRS tax levy withholding tables are updated each year, and the 668-W signing date determines which withholding table to use.

This field is enabled and required if the Garnishment Status is Active, On Hold, or Pending Completion of Other Garnishment, and the Limit Calculation Method is Use Federal Tax Levy Rules.

Enter the number exemptions claimed by the employee on the 668-W(c)(DO) form. This number is multiplied by the Amount Per Exemption from the Manage Federal Tax Levy Exemptions screen.

The 668-W Filing Status and Date Form 668-W Signed values determine which federal tax levy exemption record is used as the data source.

This field is enabled and required if the Garnishment Status is Active, On Hold, or Pending Completion of Other Garnishment, and the Limit Calculation Method is Use Federal Tax Levy Rules.

Select this checkbox if the employee's spouse is blind. If you select this checkbox, the employee receives an extra exemption amount, which lowers his federal tax levy withholding. The employee receives an exemption equal to the amount stored in the 65 Years and/or Blind field on the Manage Federal Tax Levy Exemptions screen.

This checkbox is enabled if the garnishment is not fully paid and the Limit Calculation Method is Use Federal Tax Levy Rules.

Select this checkbox if the employee’s spouse is 65 or older. If you select this checkbox, the employee receives an extra exemption amount, which lowers his federal tax levy withholding. The employee receives an exemption equal to the amount stored in the 65 Years and/or Blind field on the Manage Federal Tax Levy Exemptions screen.

This checkbox is enabled if the garnishment is not fully paid and the Limit Calculation Method is Use Federal Tax Levy Rules.

Enter the minimum wage multiplier specified by the state. For example, if the state specifies that the withholding limit option is the amount by which disposable income exceeds the product of (40 x Federal Minimum Wage), you would enter 40 in this field. In short, this is the amount that is multiplied by the appropriate minimum wage amount to reduce the disposable income used to pay the garnishment.

This field is required if the Limit 1 Calculation Method is one of the following:

• G-(MxFMW)
• DI-(MxFMW)
• G-(MxSMW)
• DI-(MxSMW)
• G-(MxGMW)
• DI-(MxGMW)
• N-(MxSMW)
• (DI-(MxSMW))xP

Enter the exemption amount specified by the state. For example, an Oregon employee is entitled to an exemption amount of $196.00 of weekly wages. This means that the employee’s weekly net pay must be at least $196.00.

The Limit 1 Weekly Exemption amount is a weekly amount, which is converted to accommodate the employee’s pay frequency when payroll is computed. For example, if a weekly exemption amount of $100.00 is specified, the Compute Payroll application automatically converts this to $200.00 for an employee with a bi-weekly pay frequency.

This field is required if the Limit 1 Calculation Method is one of the following:

• G-FIXAMT
• DI-FIXAMT

From the drop-down list, select the calculation used for the second state limit. Valid options are:

• Not Applicable
• Percent of Disposable Income
• Percent of Gross

This field is enabled if the Limit Calculation Method is Use Creditor Debt Rules or Lesser of Limit 1 and Limit 2.

Enter the percentage for the second state limit. This percentage is either applied to gross wages or disposable income. Most states use the federal CCPA limit for this (25% of disposable income). However, some states use a percentage that is more beneficial to the employee. For example, Delaware specifies that the withholding limit must be the lesser of:

• 15% of the employee’s disposable income, or
• The amount by which the employee’s disposable earnings exceed the product of (30 x federal minimum wage)

In this case, you would enter 15% in the Limit 2 Percentage field.

This field is required if the Limit 2 Calculation Method is Percent of Gross or Percent of Disposable Income.

If the Limit 2 Calculation Method is not Percent of Gross or Percent of Disposable Income and you do not enter a value in this field, 0.00% defaults into this field when you save the record.

Enter a weekly personal credit amount which is multiplied by the employee’s Number of Personal Credits to determine the total personal credit amount.  

Some states specify a weekly fixed credit amount to reduce the garnishment withholding amount. For example, the state tax levy instructions for Rhode Island instruct employers to withhold 100% of net pay less $75 plus $25 for each dependent. The $75 is considered a personal credit amount and you would enter 75.00 in the Weekly Credit Amount field.

The Weekly Credit Amount must be a weekly amount.

Enter a weekly dependent credit amount which is multiplied by the employee’s Number of Dependent Credits to determine the total dependent credit amount.  

Some states specify a weekly fixed credit amount to reduce the garnishment withholding amount. For example, the creditor debt garnishment instructions for North Dakota state that the maximum amount subject to creditor debt garnishment in any work week must be reduced by $20 for each dependent family member living with the employee. In this case, the $20 is considered a dependent credit amount, and you would enter $20.00 in the Weekly Credit Amount Per Dependent field.  

In another example, the state tax levy instructions for Rhode Island instruct employers to withhold 100% of net pay less $75 plus $25 for each dependent. The $25 is considered a dependent credit amount, and you would enter $25.00 in the Weekly Credit Amount Per Dependent field.

Select this checkbox if federal or state law mandates that the calculated garnishment withholding amount must be reduced by the employee’s higher priority garnishment amounts. This checkbox is enabled for all types of garnishments except child support garnishments.

This option is mandated mainly for student loan garnishment calculations. If an employee has a student loan garnishment along with other garnishments, the student loan garnishment rules specify that the student loan withholding must not exceed the student loan garnishment limit less any higher priority garnishment amounts.  

When an employee has both a student loan garnishment and a support order, the support order always takes precedence, even if the student loan was received first. Because the support order has priority over the student loan garnishment, the student loan garnishment limit is calculated as follows:

(25% x Disposable Income) – Support Order Amount

Joe Smith has both a student Loan and a support order garnishment. The support order has a higher priority.

Support Order Amount = $175.00

Student Loan Garnishment Limit = $200.00 (25% x 800.00)

The employer can only withhold the difference between the student loan garnishment limit and the support order amount.  

Select this checkbox if federal or state law mandates that the calculated garnishment withholding amount must be reduced by the employee’s federal tax levy withholding amount. This checkbox is enabled only if the Deduction Type is Creditor Debt Garnishment or State Tax Levy.  

For example, state creditor debt garnishment rules limit the amount that can be withheld from an employee to protect the employee from having too much withheld (and being left with too little net pay). Some states mandate that if an employee has federal tax levy and a creditor debt garnishment and the federal tax levy was received before the creditor debt garnishment (the federal tax levy has higher priority), the total of the two cannot exceed the creditor debt garnishment limit. In this situation, states may mandate that the employer must first withhold for the federal tax levy and only withhold for the creditor debt garnishment if the federal tax levy withholding amount is less than the calculated creditor debt garnishment limit.

Joe Smith has both a federal tax levy and a creditor debt garnishment. The federal tax levy has a higher priority than the creditor debt garnishment because it was received first.

Federal Tax Levy = $175.00

Creditor Debt Garnishment Limit = $200.00

The employer can only withhold the difference between the creditor debt garnishment limit and the federal tax levy amount.  

Select this checkbox if federal or state law mandates that the calculated garnishment withholding amount must be reduced by the total of medical insurance deduction amounts. For example, Maryland mandates that the amount withheld for a state tax levy order received on or after 7/1/2002 be the result of this calculation:

(25% x DI): Medical Insurance Deduction Amt

Jane Smith has both a State Tax Levy garnishment and also pays a total of 185.00 in medical insurance premiums each pay period.

Medical Insurance Premiums = $185.00

State Tax Levy = (25% x 1000) = $250.00

The employer can only withhold the difference between the calculated State Tax Levy amount and the total of the Medical Insurance Premiums.  

This checkbox is enabled only if the Deduction Type is State Tax Levy.

Select this checkbox if federal or state law mandates that the employee’s calculated garnishment withholding amount must be reduced by the total of his support order withholdings (if applicable). This checkbox is enabled only if the Deduction Type is State Tax Levy.

For example, state creditor debt garnishment rules limit the amount that can be withheld from an employee to protect the employee from having too much withheld (and being left with too little net pay). Support orders must always have a higher priority than creditor debt garnishments. States mandate that if an employee has a support order and a creditor debt garnishment, the total of the two cannot exceed the creditor debt garnishment limit. Because support orders have a higher priority, the employer can only withhold for the creditor debt garnishment if the employee’s total support order withholding does not exceed the creditor debt garnishment limit.  

Joe Smith has both a support order and a creditor debt garnishment.

Support Order Amount = $150.00

Creditor Debt Garnishment Limit = $200.00

The employer can only withhold the difference between the creditor debt garnishment limit and the support order amount.  

It is important to note that if the child support amount is exempt from an employee's disposable income, this checkbox must not be selected because not only would the wage base be reduced by the support order amount, but the calculated garnishment would also be reduced by the support order amount.