Add a garnishment or other post-tax deduction

You can deduct a post-tax amount from your employee's paycheck to account for a wage garnishment or other debt. This money will stay in your company bank account, and if you have been ordered to remit it to any agencies, that will be your responsibility.

  1. Click the People tab.
  2. Click your employee's name.
  3. Click +Add a Garnishment or Custom Deduction.
  4. Select if this is a garnishment or custom deduction (post-tax).
  5. For all other garnishments select the type from the dropdown menu. For custom deductions, enter a description which will appear on the employee's paystub.
    • We'll make these deductions from payroll and leave the money in your company account to pay directly to the collecting agency.
  6. Select if this a recurring or one-time post-tax deduction.
  7. Enter the post-tax deduction amount for each payroll:
    • Dollar amount per pay period
    • Percentage of disposable income, in which you can also add a maximum dollar amount per pay period
  8. For recurring post-tax deductions, add an annual maximum if applicable.
  9. Click Save.
  10. The next time you run payroll, this amount will be deducted from your employee's wages post-tax. The deduction will be seen as a separate line item on the employee's paystub.

If you have received a wage garnishment notice or income withholding order and have questions about it, we highly recommend contacting the agency that sent you the notice or your accounting professional for more information. 

 

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