How do I set up a Payroll Calculation that is a Percentage of the Net Income?
How do I set up a Payroll Calculation that is a Percentage of the Net Income?
Hi, casystooper. When we are setting up a garnishment, we often find that there is a maximum garnishment amount, or a percentage of income if disposable income (gross pay - employee taxes) is less than enough to allow that amount. For example, in one case, a child support garnishment was 60% of disposable income up to a maximum deduction of $358 per week. $358 is 60% of $596.67, so if the employee's disposable income is $596.67 or more, we want to deduct $358, and if less than $596.67, we want to deduct 60%. We use a formula of "IF(Gross Pay (PR Check) - Employee Taxes (PR Check) >= 596.67, 358,00, (Gross Pay (PR Check) - Employee Taxes (PR Check))*.60)"
Hope this helps.
I have the answer. You set up your Calculation as a #6 in the Calculation Method which is % Disposable Income (net), then in the Default Rate put 25.00 (instead of .25 which is what I was putting).
Thank you everybody for your replies.
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