Payroll Calculation - Garnishment

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How do I set up a Payroll Calculation that is a Percentage of the Net Income?

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    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.

  • +1 in reply to pec
    verified answer

    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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