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Set up employees and payroll items

Set up Chapter 13 bankruptcy garnishments

Do the following to set up an employee with a Chapter 13 bankruptcy garnishment and have the application make the appropriate calculations during payroll check entry.

Set up a vendor as a payroll agent for a Chapter 13 bankruptcy garnishment

You'll need to modify a payroll agent vendor to receive the garnishment deduction.
  1. To add a new vendor, select
    Setup
    , 
    Vendors
    , then
    Add
    . Or, for an existing vendor, select
    Edit
    .
  2. Enter vendor information as usual.
  3. In the Identification section of the Main tab, select
    Payroll Agent
     in the
    Vendor type
     field.
  4. In the Payment Preferences section, make your selections based on how you'll submit the payment.
    • If you're paying by check, select
      Check
      .
    • If you're making the payment outside of the application, select
      Payment
      .
    • If you're paying via direct deposit, select
      Direct Deposit
       then, in the
      Direct Deposit
       tab, enter valid direct deposit information for the vendor.
  5. Select
    Enter
     to save your changes to the vendor.

Create Chapter 13 bankruptcy garnishment payroll items

The 1st step is to create a payroll item for the client to use for employees with Chapter 13 bankruptcy garnishments.
  1. Add a new deduction item for the client.
    note
    We recommend that you don't enter an agent in the Identification section. You'll select the appropriate agents when you add information in the Chapter 13 Bankruptcy section.
  2. In the Special Type section of the
    Main
     tab of the
    Payroll Items
     screen, select
    Garnishment
     then
    Chapter 13 bankruptcy
     from the dropdown.
  3. Select
    Enter
     to save your changes.

Add the new deduction item to the employee record

  1. Go to
    Setup
    Employees
    Payroll Items
     and make the new garnishment deduction item active for the employee by marking its checkbox in the Deductions grid.
    note
    If a Chapter 13 bankruptcy garnishment deduction item isn't listed, contact your Payroll Specialist.
  2. Select the ellipsis for the new deduction item.
  3. Enter or select the appropriate information in the Chapter 13 Bankruptcy section of the
    Main
     tab of the
    Employee Payroll Item Settings
     screen.
    • Case Identifier.
       (Required) Enter the bankruptcy case identification number. Note that case numbers generally include the case number plus the initials for the presiding judge and, in some localities, the magistrate judge. Example, 1:08-cv-12345-JQJ-SJJ.
    • Order date.
       You can enter the date on which the bankruptcy case was issued.  This field isn't mandatory, but it's used only to determine the priority of multiple garnishments when needed.
    • Agent.
       You can use this field to assign a payroll agent to the Chapter 13 bankruptcy order to use for generating liabilities.
    • Percent or Amount.
       Specify the percent or the amount that is to be deducted per paycheck.
    • Total Order amount.
       You can use this field to specify a perpetual limit for the case. If you leave this field at its default $0.00 amount, the application will assume that the garnishment has no limit.
    • Inactive date.
       Use this field to specify a date on which the garnishment is no longer active.  Payroll checks entered on or after this date won't include this garnishment. Note that the date you enter here must fall on or after the date in the
      Order date
       field.
  4. Save the employee payroll item information.

Limits

Limits for Chapter 13 Bankruptcy garnishments aren't restricted by the Consumer Credit Protection Act (CCPA).
The maximum percentage of disposable income that can be garnished is 100%.

This article applies to:

  • Product: Accounting CS Client Access
  • Subject: Payroll checks,Setup