PAYROLL-SETUP COURT ORDER DEDUCTIONS

From OpenRDA Answers
Jump to: navigation, search

Main PagePayrollDocumentationSetup → Setup Court Order Deductions


Contents



What This Does


  • All setup described below is used to prioritize and determine wages available and amounts to garnish.
  • Using the Table Lookup Period Gross and garnishment table allows the system to determine wages available to garnish considering take home pay based on ranges of gross amounts (See table in Setup-Define Tables).


Best Practices


  • These guidelines are to assist in setup but it's recommended that deductions be monitored for accuracy according to the court order.
  • Questions related to the court order should be directed to the agency that issued the order.
  • Setup will vary depending on the court order itself and may require a different setup than described in this wiki.
  • Full Deduction Description general setup instructions are available; In OpenRDA go to Help → OpenRDA Answers / Documentation → Click on Payroll link → Documentation → Setup → click on question link, How can I create a new deduction?


Deduction Type


  • HR → Payroll → Setup → Deductions → Deduction Type
  • Deduction type determines whether the deduction is Mandatory or Voluntary, computation level and sheltering (normally, Deduction Types do not need to be changed from the original setup).
  • Below is an example of a Child Support Deduction type.
  • Garnishment Deduction Types or any other types of court order should be set with a higher computation level than the Child Support and all sheltering will be set to false.


FIELDS Opt. Rec. Req. Description
Deduction Type
A way to categorize deductions – Multiple Deduction Descriptions can fall under one Deduction Type
Mandatory Deductions
Select if deduction will be set as a mandatory deduction – Taxes are usually the only deduction types set to mandatory however, court order deduction types can be set as mandatory deductions if they should withhold from ALL Payroll Types
Computation Level
Priority of withholding the deduction – The lower the number, the higher priority; Child Support deduction descriptions should be set to a lower computation level than a garnishment so the Child Support will be prioritized
Shelter Garnishment
If set to true on a Child Support Deduction Type, this means that the child support amount will be calculated and subtracted from the wages prior to calculating the garnishment deduction amount, if based on a percentage of disposable earnings; this allows for the child support to be withheld in full prior to the garnishment
Voluntary Deduction
Select for deduction to be set as a voluntary deduction – Normally court order deduction types are set as voluntary however they can be set to Mandatory and be included in ALL Pay Types
Opt. = Optional  Rec. = Recommended  Req. = Required


Deduction Description


  • HR → Payroll → Setup → Deductions → Deduction Descriptions
  • Fields described below are ones directly related to the court order setup (please see Deduction Description wiki for general setup instructions).


Type Tab        
FIELDS Opt. Rec. Req. Description
Deduction Type
(field name)
Compute Tab        
FIELDS Opt. Rec. Req. Description
Compute Type
  • Flat Amount would normally be selected for Child Support.
  • Flat Amount , Percentage of Gross, Percentage of Adjusted Gross (Depending on whether it's a percentage of disposable earnings garnishment or gross garnishment), or Table Lookup Period Gross would be selected for Garnishments
  • Table Lookup Period Gross is related to a CCPA Garnishment 25% table found in Setup – Define Tables (NOTE: Must verify whether this table follows court order requirements)
  • Percentage of Running Net would be selected for Tax Liens where the percentage of wages is high such as 100% (NOTE: In this case Direct Deposit deductions that are 100% of running net should be deactivated on the employee deduction)
Compute Type: $ or %
If Compute Type is Flat Amount, this field should be left blank and flat dollar amount should be entered on the employee deduction; if Compute type is any kind of percentage, the percentage should be entered in this field – Employee deduction Amount field should be left blank
Flags Tab        
FIELDS Opt. Rec. Req. Description
Active, Expensed, Liability, Reduce Net and Pay Withholding
These flags should all be selected
Use Limits
Select to enter a limit at the employee deduction level; commonly used for garnishment deductions however in cases where there is still a balance on the garnishment after garnishment stops, it may be best to not use limits and stop the garnishment once a release is received
Set to Include the following Rate Types
All rate types should be selected
Select to Block the Following Rates
Nothing should be selected
Opt. = Optional  Rec. = Recommended  Req. = Required


Table Name Tab



  • If Compute Type is set to Table Lookup Period Gross, the Table Name tab will be illuminated to edit.
  • The table name should be typed in this field exactly as it appears in Setup → Define Tables, enclosed in quotes.
  • For example, one of the tables a Virginia customer would see is called VIRGINIA GARNISHMENT TABLE (for monthly payrolls) - The Table Name should be: "VIRGINIA GARNISHMENT TABLE" typed in the blank field.
  • The appropriate table name should be chosen according to court order requirements and pay frequency


Rate Selection Tab



  • Used if there are exceptions to which jobs should allow the deduction - Could be based on Gross ID, Fund, etc.
  • Be aware of this tab when using the Deduction Description for multiple employees in case certain jobs do not allow for the deduction.
Personal tools
Namespaces

Variants
Actions
Navigation
Toolbox