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Main PagePayrollDocumentationSetup → Setup Levy Deductions


What This Process Does

  • Details the setup of an IRS levy involving a specified amount that an employee can take home.

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 document.
  • When creating a new Deduction Description, use an existing deduction as a template. Important fields for an IRS levy deduction setup are defined below; for general instructions on how to create a new Deduction Description, please go to Payroll → Documentation → Setup → "How can I create a new deduction?"


  • Prior to creating the Deduction Description, create a Vendor Master for the Internal Revenue Service. For general instructions on how to create a Vendor Master, please go to Vendor Payments → Documentation → Direct Vouchers → How do I create a new vendor?

Deduction Description Master

Type Tab

FIELDS Opt. Rec. Req. Description
Deduction Description ID
Assign a unique ID; IRS LEVY or a derivative would be appropriate
Short Description
Enter a short description; normally (depending on GSV), this is what displays on employees' pay stubs
Deduction Type
Vendor Identification
Select the Vendor ID set up for Internal Revenue Service
Address ID
Verify that this is the correct address for the vendor; if it is not, clear the current address, and use the magnifying glass to search for the appropriate Address ID
Print on Separate Check
Flag this field if there are other Deduction Descriptions that have the same Vendor ID, and you would like this IRS Levy deduction to be on a separate Vendor Withholding check
VW Advice
Flag this field if you would like to be able to generate a Withholding Advice out of the Payroll Vendor Withholding module for this Deduction Description; it would list employees and deduction amounts withheld for a specified pay date or month
Employer ID
Select the applicable Employer ID for this deduction
W2 Deduction Type
Select NON-W2
Opt. = Optional  Rec. = Recommended  Req. = Required

Compute Tab

FIELDS Opt. Rec. Req. Description
Compute Type
Select IRS Levy
$ field
Leave this field at $0.00, so the amount can be maintained at the employee level; refer to Employee Deduction Master instructions below
Opt. = Optional  Rec. = Recommended  Req. = Required

Flags Tab

FIELDS Opt. Rec. Req. Description
Flag/mark as true to activate the deduction, and enable it to compute
Flag/mark as true, so this deduction can be expensed
Use Limits
Flag/mark as true, so each employee's deduction limit can be entered in his/her deduction master, which will cause the system to stop computing the deduction once the limit has been met
Flag/mark as true, so this deduction will be treated as a liability
Reduce Net
Flag/mark as true to designate this as an employee-paid deduction (i.e., that which should reduce an employee's net pay)
Pay Withholding
Flag/mark as true, so this deduction will be included in the Add V/W Vouchers process
Electronic Transfer
Optional; flag/mark as true if this deduction will be paid by a means other than a check (i.e., paid online, over phone, by EFT)
Opt. = Optional  Rec. = Recommended  Req. = Required

Employee Deduction Master

  • After selecting the employee that this deduction applies to, populate the fields are described below.

FIELDS Opt. Rec. Req. Description
Deduction Description ID
Select the IRS Levy deduction from the Browse Deductions list
Active Deduction for this Employee
Flag/mark as true to activate the employee's deduction, and allow it to compute
Adjustment/Additional Amount
Enter the amount that the employee gets to take home; this is the amount that will be protected from the levy; all remaining net pay will compute as the deduction amount
Deduction Limit
Enter the total amount of the levy, so the system will stop computing the deduction once this limit has been met; compares the LIfe-time Amount to the Deduction Limit entered; NOTE: the Use Limits boolean on the Flags tab of the Deduction Description ID must be flagged/marked as true in order for this field to be available
Case/Account Number
Optional; enter the case/account number referenced on the court order
Opt. = Optional  Rec. = Recommended  Req. = Required

Additional Setup

  • Add a Deduction Account with the appropriate Cash and Liability Codes.
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