HI PAMELA ELKINS ,

Thanks for reaching out. To address this, you would follow these steps to create a garnishment deduction in Sage BusinessWorks:

1. Go to Payroll > Utilities > Maintain Deductions. Here, you'll need to create a new deduction and assign a General Ledger (G/L) account for this specific garnishment. If the amount to be deducted is consistent for each payroll period, you should choose 'Fixed amount per pay period' as the calculation method. If the amount varies, select 'Variable, entered on time card'.

2. Next, navigate to Payroll > Employees > Maintain Employees. Assign the newly created deduction to the employee in question and enter the amount or percent to withhold. The amount you enter depends on whether you selected 'Fixed amount per pay period' or 'Variable, entered on time card' as your calculation method.

3. When processing time cards, if you chose 'Fixed amount per pay period', Sage BusinessWorks will automatically calculate the deduction. For 'Variable, entered on time card', you'll need to manually add the deduction to the time card, specifying the amount to be withheld from that paycheck.

4. For proper accounting and to ensure the garnishment payment is made to the Franchise Tax Board, you should create a vendor profile in AP (Accounts Payable) for the agency or third party. When making payments, either by check or EFT (Electronic Funds Transfer), ensure you select this vendor and post the payment for the amount withheld. This creates an invoice and a paper trail showing the amount deducted and paid to the agency for the specified time period.

For detailed guidance on creating deductions and setting up payroll deductions, you can refer to the Knowledge Base article here: How to set up payroll deductions.

Please note, if you need to add extra withholding amounts to an employee's paycheck for Federal or State Withholding Taxes, this can be done through Payroll > Employees > Maintain Employees, under the Status section. This is separate from the garnishment process but may also be relevant depending on your specific situation.

Should you require further assistance or have additional questions, please don't hesitate to reach out.

Warm Regards,
Erzsi

How can you set up the deduction so that that it is taken from the net and not the gross.

Pamela Elkins-

When creating the deduction, if you select the drop down in 'Methods' there is an option "Percent of net pay".  I hope that helps!

Sincerely,

Coleen

Thanks so much.

Thanks so much.