State Tax Levy Garnishments

The following rules apply to state tax levy garnishments:

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Calculates similar to a creditor garnishment (See Creditor Wage Garnishments)

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Not limited to CCPA limits

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Specified garnishment amount will be taken completely

Employee Garnishment

The Employee Garnishment panel maintains the basic information required for the wage garnishment.

Employee Garnishment

Enter the Docket Number assigned by the government agency or court for this wage garnishment.

Select the Category for the type of garnishment being withheld. This determines some of the other panels that display (described below).

Enter the Employee by either entering the name, Social Security Number, or ID to display a pop-up list of matching employee records. You can also click the field label or press Ctrl+Enter with your cursor in this field to open the search window. You cannot change the employee for a existing garnishment.

Enter the Receipt Date on which the wage garnishment notice was received from the issuing authority.

Enter the name of the Issuing Authority that issued this garnishment.

If the state requires you to use an ID other than the docket number, enter it in the State ID# field. This number appears on the checks instead of the docket number.

If you enter a Start Date, the system starts payroll deductions on or after this date.

If you enter a Stop Date, the system stops payroll deductions on or after this date.

Enter the Payee ID to whom amounts withheld for this wage garnishment will be paid. If the payee record is set up to use EFT, the SDU or EFT panel might display.

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Enter the Deduction Code used for this garnishment.

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Enter an Annotation to print in the Memo field of the check stub. There are two lines available.

Calculation Rules

Enter the calculation rules for the state tax levy.

Enter the Total Garnishment amount owed by the debtor to be collected under the garnishment order. If no limit is imposed, enter 0.

Specify one of these methods to determine the withholding amount:

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Enter a Flat Amount to withhold from the employee’s net pay.

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Enter a Percent and then select whether it should be calculated based on the employee’s:

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Gross Pay: all taxable wages

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Net Pay: gross pay minus taxes and preceding garnishments

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Starting Net Pay: gross pay minus taxes

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Subsequent Gross Pay: gross pay minus preceding garnishments

Enter the Exempt Amount, which is the amount of wages that are exempt from the state tax levy. The amount levied will be equal to the disposable income, less the exempt amount.

Enter the Garnishment Fee that is associated with this garnishment, which PrismHR deducts from the employee’s pay each time it processes the garnishment.

EFT

The system supports the ability to create an ACH file with line items for garnishments. This allows you to submit an ACH file that results in an EFT for franchise tax board garnishments and state tax levies if your organization has selected the Consolidated ACH File Processing Used option in System Parameters. The EFT panel allows you to enter the case identifier for the wage garnishment.

Note: This panel displays only for franchise tax board garnishments and state tax levies where the Payee is a garnishing authority with EFT parameters.

Many states permit submission of tax levies by ACH, and some states require it. In addition, the franchise tax board garnishment can be used for any state.

For state tax levies set up for EFT, enter the Case Identifier. This field will be required if the payee is set up to require the case number.

Setting Temporary Garnishment Overrides

You can establish temporary garnishment overrides based on specified dates by updating the settings in the Override Rules panel.

Override Rules panel

To set temporary garnishment overrides, do the following:

In the Override Rules panel, complete the following fields:

Field	Description
Override Amount	Enter the temporary Override Amount to use during the specified date range.
Override Start Date	Enter the temporary Override Start Date.
Override Stop Date	Enter the temporary Override Stop Date.
Suppress Voucher Types	Select the Suppress Voucher Types, which are the pay types exempt from this garnishment. This setting is not controlled by the override start and stop dates. Instead, it applies to the entire garnishment record.
Suppress From Unscheduled Payrolls	Select Suppress From Unscheduled Payrolls, if the garnishment should not be taken out of unscheduled payrolls.
Override G/L Account	Enter the Override G/L Account that identifies the account number this garnishment credits.

When you have finished entering the information, click Save.

Payments History

The Payments History panel provides a list of garnishments that have been paid to date.

Payments history panel

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The table lists the information for each payment:

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Voucher Number: Each voucher that has been paid against this garnishment

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Pay Date: Date on the voucher

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Amount Due: Amount due as calculated on the voucher

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Paid On: Date each check was paid

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Check Number: Number on the check used to pay the garnishment to the payee

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ACH Reference: Reference for the ACH transaction used to pay the garnishment to the payee

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EFT/Check$: Amount of each check or transaction

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Click Adjust to make an adjustment to the table. This does not affect accounting updates or functions, but can cause an adjustment to the employee’s next paycheck.