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You are here: Payroll > Payroll Setup > Garnishment Deduction
For a percentage deduction that needs to automatically subtract mandatory taxes and certain deductions before applying the percentage.
Deduction #: All percentage deductions listed in the deduction setup will appear in the combo box. Select the deduction that is to be calculated on gross wages less mandatory taxes and certain deductions.
If additional deductions are to be subtracted from gross wages before applying the garnishment percentage, highlight the appropriate deductions in the list.
Minimum/Maximum Amounts: A garnishment that is subject to the Consumer Credit Protection Act’s Title 3 (CCPA) has a specific set of guidelines to be followed. There is a defined minimum and maximum disposable income threshold for this regulation that differs based on pay cycle. That is, if the employee’s disposable income falls below a certain amount, this deduction will not be processed. If the disposable income is between the minimum and maximum amounts, the amount of disposable income over the minimum amount is withheld. If disposable income exceeds the maximum amount, the deduction switches to the percentage.
To see what the specific minimum and maximum amounts are to be entered into your setup, please see the following link for details: http://www.dol.gov/whd/regs/compliance/whdfs30.htm
NOTE: If you should need to change a percentage garnishment deduction to a dollar amount, first go into garnishment setup, call up that deduction and click on delete. Then go to deduction setup and change that deduction from a % to A.